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Voyager Digital: VGX price up 24.4% as Changpeng Zhao confirms Binance.US bid

By Darius McQuaid

15:28, 24 November 2022

Founder and CEO of Binance Changpeng Zhao, commonly known as
FTX had won the bid to buy Voyager’s assets but have now filed for bankruptcy - Photo: Getty Images

Binance’s CEO has confirmed that the US arm of the world’s largest cryptocurrency exchange is making another bid for Voyager Digital.

Changpeng Zhao, co-founder and CEO of Binance, told Bloomberg: “We will make another bid for Voyager now”, adding they would “see how this plays out”.

The news has resulted in the vgx token (VGX), the native token of Voyager, as of 13.00 GMT on 24 November rising by 24.4% compared to the previous day to $0.44, according to CoinMarketCap.

Binance.US had placed a bid to buy the assets of the bankrupt crypto-lending platform in September 2022, but lost out to FTX – now in bankruptcy itself.

FTX bought the assets after two weeks and numerous rounds of bidding “in a highly competitive auction process”. Its bid was worth roughly $1.42bn (£1.17bn) and consisted of the fair market value of the crypto lender’s assets and $111m (£91m) of “incremental value”.

However, FTX filed for bankruptcy on 11 November 2022, which led to the auction reopening and Voyager once again being “in active discussions with alternative bidders”.

The crypto lender stated that “Voyager did not transfer any assets to FTX US in connection with the previously proposed transaction.” FTX US so far had sent across a $5m (£4.1m) “good faith” deposit as part of the auction process “which is held in escrow”.

BTC to USD 

SOL/USD

169.30 Price
-6.140% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

XRP/USD

0.62 Price
-2.120% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.12 Price
-5.460% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,138.22 Price
-6.820% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

‘Rumours spread by FTX to try and push us out of the bid’

At the time of the first sale of Voyager’s assets, there were fears that Binance’s bid would be rejected on the grounds of US national security.

The Committee on Foreign Investment in the United States (CFIUS) can block deals it feels could present a risk to national security. Both President Joe Biden and former President Donald Trump have taken a cautious view of Chinese investment in US firms.

Zhao responded by saying: “First of all, I think the US national security concerns were rumours spread by FTX to try and push us out of the bid.”

The Binance CEO added: “There were never any concerns about Binance.US participating in the bid.” He said that Binance has acquired multiple companies in America without any issues.

The CEO also reiterated that “Binance is not a Chinese company, we are not related to China at all” and that Zhao himself is a Canadian citizen.

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$1bn fund for distressed crypto assets

Binance is also planning the launch of $1bn crypto recovery fund for the purchase of distressed crypto assets. “If that is not enough, we can allocate more,” said Zhao.

The CEO added: “If after six months there’s unused funds and there’s not that many projects – hopefully the industry will have recovered by then – we can withdraw it back.”

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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