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What is the voyager token? What you need to know about VGX amid takeover rumours

By Iliana Mavrou

Edited by Jekaterina Drozdovica

16:40, 8 September 2022

Voyager coins are lying flat. Voyager logo in the background.
What you need to know about VGX amid takeover rumours – Photo: Shutterstock; Mundissima

Bankrupt crypto exchange platform Voyager was once a prominent name in the industry. Its native cryptocurrency, VGX, surged tenfold in the first six months after launch. 

The voyager (VGX) token benefited from the 2021 crypto  boom, but was hit by the market downturn in 2022. After filing for bankruptcy in July, there are rumours of a takeover. Will the likes of Binance or any other big crypto player be able to save the struggling company?

In this article, we take a look at what is voyager crypto, the latest bankruptcy and takeover news, and how analysts view VGX. 

What is Voyager token?

Voyager is an American cryptocurrency platform that was founded in 2017 by a team of finance and technology industry veterans, including Stephen Ehrlich, the company’s CEO, Philip Eytan, Voyager’s chairman, and Gaspard de Dreuzy, a figure involved in several other tech companies. 

The firm is dedicated to empowering and servicing investors in what it calls “the most exciting asset class to date – crypto”.

“Our mission is to provide every investor with a trusted and secure access point to crypto asset trading. We offer best-in-class customer service, incomparable access to the most popular assets and commission-free trading,” the company states. 

Voyager is a publicly traded company. Since 2021, it's been listed on the Toronto Stock Exchange (TSX) under the ticker VOYG.

The platform offers more than 100 digital assets to buy through its mobile application, and earn rewards up to 12% annually on more than 40 cryptocurrencies. 

The company launched its own cryptocurrency, the Voyager Token (VGX). What is VGX? In essence, the VGX token is designed to reward Voyager customers for their loyalty. 

The token was based on the Ethos Token, which was launched in 2017. In 2019, Voyager acquired Ethos.io and incorporated its team, technology and native token into the ecosystem. 

Before 2020, the platform operated with a multi-token functionality. In 2020 Voyager integrated its native tokens into a new single token model known as VGX 2.0. The VGX coin maintains a presence on the Ethereum blockchain as an ERC-20 cryptocurrency

According to the project’s whitepaper, Voyager utilises the VGX 2.0 token to boost the platform’s adoption and functionality. 

“Voyager plans to introduce more features including a debit card and DeFi [decentralised finance] offerings. Customers deploying and staking VGX 2.0 through the Platform or web portal… will be integral in powering rewards in our expanded ecosystem,” the paper said. 

Holding the VGX coin allowed users to earn 7% staking rewards and boost their earnings by joining the Voyager Loyalty Program. 

According to CoinMarketCap, VGX token’s maximum supply is just over 279 million. 

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Technical view at VGC coin

The VGX token was met with enthusiasm, boosting the price to an all-time high of $11.02 just six months after the launch in 2017. The bullish run was short-lived, and the price fell by 96.7% to $0.3678 by August 2018. 

The voyager coin price remained flat, trading between $0.30 and $0.06 until January 2021, when it gained some momentum. VGX/USD price, 2017 – 2022

Between January and February 2021, VGX surged 3,267% to $6.9023. Around this time, the Uniswap (UNI) token became available on the Voyager platform

The VGX coin peaked once again in March 2021, reaching $6.9704 following the brokerage’s announcement on new annual percentage rates (APR). In addition, three new major cryptocurrencies were added to the Voyager Interest Program, including decentraland (MANA), dogecoin (DOGE) and uniswap (UNI). 

BCH/USD

492.00 Price
+5.620% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

ETH/USD

3,126.13 Price
+1.220% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.16 Price
+0.710% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BTC/USD

67,188.70 Price
+0.340% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

In November 2021, the voyager coin surged to $5 amid positive crypto market sentiment. However, that was the token’s last peak as it embarked on a bearish run. Since the November high, VGX has lost more than 75% of its value, dropping to $1.05, as of 8 September. 

The coin had a market capitalisation surpassing $247m and was the 122nd biggest cryptocurrency, according to CoinMarketCap. At the time of writing (8 September), over 278 million of the tokens were in circulation, which amounts to 99% of the maximum supply. 

Voyager filed for bankruptcy and takeover rumours surface

Voyager was also not left behind in the global crypto crash, and had filed for bankruptcy protection in July 2021 shortly after announcing that it was suspending all trading, deposits, withdrawals and loyalty rewards for its customers. 

On 27 June, the company issued a notice that one of its clients, the now also bankrupt crypto hedge fund Three Arrows Capital owed the company 15,250 BTC tokens and $350m in USDC. 

Despite news of the company’s bankruptcy, the VGX token rose, jumping from $0.10 on 11 July to $0.59 two days later. 

Voyager was contacted by 88 potentially interested buyers interested in taking over the company. It was in “active discussions” with 20 of them. In July, FTX US, Alameda and West Realm Shires offered to buy out Voyager. The company called their offer “a low-ball bid dressed up as a white knight rescue”, according to court documents

In a second-day hearing presentation on August 4, the company stated that it received “higher and better” buyout offers. But nothing was agreed, as of 8 September.

Amid the takeover news, the voyager token price saw several small boosts. The token rose by around 290% between 11 and 13 July, from $0.1532 to $0.593. At the end of August the token regained momentum yet again, spiking to $0.6924 on 26 August and surpassing the $1 level in early September.  

Invezz analyst Crisous Nyaga told Capital.com that the VGX token has outperformed due to rumours that the company will be acquired by either Binance or FTX, noting:

“Rumours of a buyout have incentivised traders to buy hoping that Voyager will continue operating as a going concern. If this happens, these staking rewards and cashback returns will be resumed.”

Nyaga noted that VGX was also possibly boosted by rising demand for “cryptocurrency fallen angels”, like Terra’s (LUNA), Terra Classic USD and Celsius’ CEL.

Dr Pooja Lekhi, Professor of Finance at University Canada West, noted that the VGX price has outperformed many cryptocurrencies, like bitcoin (BTC) and ethereum (ETH). 

“The main reason is companies like FTX and Binance are said to be negotiating to acquire the firm. If this happens, the potential buyer will likely have the resources to make it thrive again,” Dr Lekhi noted. 

The Voyager Sale Hearing is due to take place on September 8. 

Risk and opportunities of VGX

As takeover rumours mount and hearings approach, the coin’s future could depend on the bankruptcy proceedings, according to Invezz’s Nyaga. 

“If the firm moves completely out of business, there is a possibility that the VGX token will not survive. On the other hand, if it is acquired, there is a possibility that the coin will continue doing well,” he told Capital.com. 
Dr Lekhi aded: “Voyager Token’s future price is difficult to predict as it is reliant on a number of factors, including the performance of the Voyager Token network, global economic conditions, the stock market and the price of other cryptocurrencies.”
“However, if Voyager Token continues to grow as a project at its current rate, it is possible that the price evaluation for VGX could easily go back to its past prime and probably even surpass it.”

Note that analysts’ views on the VGX token can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence. And never  trade money you cannot afford to lose.

FAQs

How much will Voyager Token be worth?

No-one knows. According to analysts cited in this article, the future of VGX could depend on the outcome of bankruptcy proceedings and whether the company is taken over by a bigger player. Note that predictions can be wrong. Always conduct your own research before meaning any investment decision.

Is Voyager Token a good investment?

Whether VGX is a good investment for you depends on your personal circumstances and risk appetite. Cryptocurrencies are high-risk assets. You should do your own research and evaluate the level of risk you are prepared to take before investing. Never invest money you cannot afford to lose.

Is VGX decentralised?

Yes. Voyager is a decentralised blockchain-based broker that allows users to connect to a number of exchange platforms and markets.

 

Markets in this article

BTC/USD
Bitcoin / USD
67188.70 USD
229.35 +0.340%
MANA/USD
Decentraland / USD
0.44873 USD
0.0026 +0.600%
DOGE/USD
DogeCoin / USD
0.1563487 USD
0.0011031 +0.710%
LUNA2/USD
LUNA2.0 to USD
0.6000 USD
-0.0071 -1.190%
UNI/USD
Uniswap / USD
7.98683 USD
0.38375 +5.100%

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