Voyager Token price prediction: Where next for VGX after Binance deal?
The crypto exchange Voyager Digital (VGX) has announced it will be selling its assets to Binance in a $1bn deal. The news saw the value of Voyager’s native VGX token, which had seen a downward slump in 2022, briefly surge, although it has since fallen. So what does the news mean for the future of VGX?
Voyager, one of several centralised exchanges that rewards users holding its native token, filed for bankruptcy on 6 July 2022, after the crypto hedge fund Three Arrows Capital (3AC) defaulted on a $670m loan. deal.
It had previously been announced in September that FTX, prior to its own bankruptcy, had won the auction for Voyager Digital’s assets with its whopping $1.42bn bid.
Voyager will seek the bankruptcy court’s approval for the deal in a hearing on 23 January 2023.
What is Voyager Token?
The Voyager Digital online brokerage launched in October 2018. Its parent company, Crypto Trading Technologies, was co-founded by Stephen Ehrlich, Philip Eytan, Gaspard de Dreuzy and Oscar Salazar, all of whom have backgrounds in electronic trading and investments in start-ups such as Uber.
Voyager aimed to make the user experience when trading cryptocurrencies similar to traditional online brokerages, and launched a mobile app in January 2019. The Voyager platform offered more than 70 cryptocurrencies for trading, while transactions were commission-free so traders could pay the quoted price when buying and selling.
Voyager provided deposit yields as high as 12% annual percentage yield (APY) by lending cryptocurrencies to other companies. The crypto-native company also launched its own cryptocurrency – the Voyager Token (VGX) – which was primarily used as a reward and loyalty token for the Voyager brokerage platform.
In September 2021, Voyager’s shares began trading on the Toronto Stock Exchange. At the time, the company had more than $5bn worth of assets under management and boasted a user count of over two million.
“Voyager connects to multiple exchanges, liquidity providers and market makers via our smart-order router to achieve better execution on pricing and trades,” said the project’s whitepaper, adding:
Holding the native VGX token enabled users to earn 7% staking rewards and boost their earnings by joining the Voyager Loyalty Program. There were different tiers of loyalty status, so the more tokens a user had, the higher the potential rewards.
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Voyager token news
As a publicly-traded company, Voyager Digital (VYGVF) reported quarterly earnings results. In November 2021, it reported revenue of $65.6m for the three months to 30 September, up more than 3,280% from $2m from Q3 2020. The company reported an operating loss of $28.3m as it invested in its loyalty and rewards scheme.
Voyager had more than 2.15 million verified users at the end of the quarter, up 23% from 1.75 million at the end of its previous financial year in June 2021. Total funded accounts exceed 860,000, up 29% from 665,000 at the end of June 2021.
Total assets under management rose to $4.3bn from $2.6bn and climbed to just under $7bn by the end of September.
On 10 November 2021, Voyager announced that it had surpassed one million funded accounts and 2.7 million verified users.
Trading shutdown and exposure to Three Arrows Capital
However, Voyager shut down all customer trading, deposits, withdrawals and loyalty rewards on 1 July 2022, according to a statement released by the company.
The news came after one of Voyager’s clients defaulted on a loan worth hundreds of millions of dollars, adding to growing concerns of frequent insolvencies across the crypto industry.
On 27 June 2022, Voyager issued a notice that one of its clients, prominent crypto hedge fund Three Arrows Capital, had defaulted on a loan worth more than $670m (15,250 BTC and $350m in cash).
According to a 1 July press release, the firm is “actively pursuing all available remedies for recovery from 3AC, including through the court-ordered liquidation process in the British Virgin Islands”.
On 3 July 2022, Voyager said it had approximately $350m in US dollars in cash at Metropolitan Commercial Bank, along with $1.3bn of crypto assets on its platform.
We are doing everything in our power to best serve our customers for the long term. We are actively pursuing a series of strategic alternatives to do just that. Will share more updates as we have them. (3/3)
— Voyager (@investvoyager) 3 July 2022
The company also highlighted that it had access to a $200m credit line in cash and USDC stablecoins, as well as a 15,000 BTC ($318m) revolving credit line from Alameda Ventures, FTX founder Sam Bankman-Fried’s quantitative trading firm.
Alameda committed $500m in financing to Voyager in late June, but that could not provide enough support to keep Voyager’s brokerage business running as usual.
Bankruptcy and token surge
On 6 July 2022, several days after attempting to reassure its clients, Voyager Digital filed for bankruptcy in a voluntary Chapter 11 process in the US Bankruptcy Court of the Southern District of New York.
According to a Voyager press release issued on 6 July, account holders with cryptocurrencies in their Voyager accounts will receive a combination of cryptos, proceeds from the 3AC debt recovery, common shares in a newly reorganised company and VGX tokens.” Voyager CEO Stephen Ehrlich said:
Market participants had seemingly ignored the news of Voyager’s bankruptcy and chosen to ‘pump’ the VGX token on 12 July 2022. This price surge is reminiscent of ‘social pump’ schemes, as seen with other fallen tokens like Celsius (CEL) and Luna Classic (LUNC).
On Twitter, several users posted tweets with the hashtag #PumpVGXJuly18. A Twitter user named MetaFormLabs, which claimed to be a crypto venture firm, said in a now-deleted tweet that a plan to pump VGX to a target price $5 on 18 July was being orchestrated.
FTX’s loss and Binance’s gain
There was a bidding war over Voyager’s remaining assets and the winner was recently announced as the FTX cryptocurrency exchange, whose winning bid was worth roughly $1.422bn, according to a statement. This cwas made up of the assets’ fair market value and $111m of “incremental value”.
The auction lasted two weeks with multiple rounds from various high-profile crypto companies. These were rumoured to include Coinbase (COIN) and Binance (BNB).
However, there were still hurdles for both FTX and Voyager. The US bankruptcy Judge Michael Wiles said the company could cancel the deal if a higher offer is presented, according to Bloomberg.
On 11 November, FTX filed for bankruptcy after a liquidity crisis and rumours it was up $8bn in debt. Following the announcement Voyager Digital ended the deal with FTX stating that it would “consider alternative bidders”.
On 19 December, the cryptocurrency announced that Binance had made the highest bid for its assets, at approximately $1.022bn. The deal with Binance should allow for Voyager’s customer funds to be unlocked soon, although Voyager will have to seek the approval of the bankruptcy court in a hearing scheduled to take place on 23 January 2023.
Voyager Token (VGX): Price history
Voyager integrated the Ethos Universal Wallet in October 2019, resulting in the rebranding of the Ethos token, which launched in 2017, to the Voyager Token (VGX).
At the time, the Voyager Token value was around $0.05. The Voyager coin chart shows that the VGX token largely traded below $0.20 until early January 2021, when the price began to increase as cryptocurrencies took off and markets rallied.
The VGX price climbed to an intraday high of $7.26 on 24 February, then declined to an intraday low of $1.60 when the cryptocurrency markets bottomed on 21 July. The price then rose to a new intraday high of $7.50 on 19 August 2021 as the markets climbed over the summer. VGX then fell back to the $2-$3 range until November 2021, when the markets rallied again, and the price moved up to $5.72.
VGX has been in freefall since its November peak, sliding from $4.76 on 1 December 2021 to $1.74 on 1 January 2022. The token rose slightly, trading between $2.20 and $1.50 from January to April, but then resumed its downward trajectory, following the broader cryptocurrency markets.
After filing for bankruptcy, Voyager saw a resurgence as FTX announced it had won the auction for the lending protocol’s assets. On 27 September, its price jumped from $0.62 to a high of $0.76.
However, the high did not last. On 11 November, the date of FTX’s bankruptcy announcement, VGX price was back down to $0.23. Although, it did see a peak after the announcement of its new deal with Binance, rising to $0.40.
As of 22 December, was trading at $0.31. It was down 7% over the previous week and 12% in the previous 30 days.
VGX all-time performance
Source: CoinMarketCap
Voyager Token price prediction 2022-2025
A technical Voyager price analysis from CoinCodex indicated that short-term sentiment on the VGX price was highly bearish on 22 December. Only one technical analysis indicator gave a bullish signal compared with 28 bearish signals.
CoinCodex’s short-term VGX price prediction saw the Voyager Token falling by 40% to trade at $0.24 by 20 November.
The VGX coin price prediction from algorithm-based forecasting site Wallet Investor expected the token to trade lower over the long term. It projected that the VGX price would have stooped to $0.02 in a year. However, the website’s Voyager Token price prediction for 2025 suggested it could rise to $0.04 by the beginning of the year.
DigitalCoinPrice’s Voyager coin price prediction was relatively more optimistic, estimating that the coin could average $0.39 in 2022 and $0.73 in 2023, based on historical data, and trend slightly higher to $1.40 in 2025. According to the website’s Voyager Token price prediction for 2030, the coin could reach $4.51.
The VGX/USD forecast from PricePrediction was more bullish in its longer-term outlook. Its VGX price prediction estimated that the coin would average $0.36 in 2022 and $1.03 in 2025, and climb to $6.74 by 2030.
It is important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict a coin’s price in a few hours and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their VGX price predictions wrong.
We recommend that you always do your own due diligence and evaluate the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment or trading decision.
Voyager price predictions shouldn’t be used as a substitute for your own research. Keep in mind that past performance is no guarantee of future returns and never invest more than you can afford to lose.
FAQs
Is Voyager Token a good investment?
Cryptocurrencies are highly volatile assets, making them high-risk. Whether VGX is an appropriate investment for your portfolio depends on your personal circumstances and risk tolerance. VGX predictions shouldn’t be used as a substitute for your own research.
Always conduct your own due dilligence and evaluate the level of risk you are prepared to accept before investing. Never invest money that you cannot afford to lose.
Will Voyager Token go up or down?
Algorithm-based forecasting sites like Wallet Investor and CoinCodex gave bearish Voyager crypto price predictions as of 22 December, whereas DigitalCoinPrice expected steady gains.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether VGX is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.
Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.
Should I invest in the Voyager Token?
Whether you should buy the VGX token is a personal decision based on your risk tolerance and investing goals. You should do your own research to decide whether the Voyager token is a suitable investment for you. Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.
Is Voyager crypto safe?
The Voyager platform filed for bankruptcy on 6 July 2022, after having exposure to the bankrupt hedge fund Three Arrows Capital. Voyager is now in the process of liquidating its remaining assets.
Investors should always carry out their own thorough due diligence before investing in cryptocurrency.
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