The VGX token worth went parabolic on Wednesday as traders priced in a turnaround of the father or mother firm. Voyager Digital’s native token rose to a excessive of $0.5155, which was the best degree since June twenty third. According to Binance, it has surged by greater than 220% prior to now 24 hours. It has additionally jumped by 240% from its lowest level this yr.
Why is Voyager Digital hovering?
Voyager Digital was one of many greatest cryptocurrency exchanges on the planet. At its peak, the corporate used to deal with quantity price billions of {dollars} daily. It had greater than a million clients.
Recently, nonetheless, Voyager has had a spectacular fall from grace. The agency was lately compelled to droop withdrawals and deposit. It additionally voluntarily determined to file for chapter safety.
The disaster occurred due to the current crash of Bitcoin and different cryptocurrency costs. Notably, the collapse of Terra and its ecosystem had a direct influence on the corporate. For instance, it had prolonged funds to Three Arrows Capital, one of many hedge funds that misplaced cash when Terra crashed.
Ignore Voyager Digital. Here are the best crypto exchanges.
Voyager Digital has additionally come into the highlight now that regulators and regulation enforcement officers are investigating it. As such, most analysts imagine that it is going to be inconceivable for the corporate to thrive because it used to earlier than. Besides, it has misplaced the belief of most customers.
The VGX token worth is surging as traders react to a assertion the company published on Tuesday. The firm reiterated that it held about $1.3 billion of crypto property on its platform. It additionally has claims towards Three Arrows Capital. It additionally mentioned that clients will be capable to withdraw these funds when the reorganization plan ends.
Therefore, the VGX worth is rising as traders cheer these occasions. As I wrote earlier than, property in hassle are additionally ripe for pump and dump schemes. For instance, we noticed the Celsius token soar sharply at the same time as the corporate’s challenges emerged. Hertz shares additionally jumped after the corporate went bankrupt.
VGX token worth prediction
The four-hour chart exhibits that the Voyager Digital token worth has been in a robust bullish development prior to now few hours. The coin managed to maneuver above the descending trendline proven in blue. It additionally jumped above the 25-period and 50-period transferring averages.
In my view, that is a useless cat bounce, that means that the coin will see a main pullback within the subsequent few days. If this occurs, it’s going to possible drop to the help at $0.15, which is about 70% under the present degree.
