VGX Price Spikes After Voyager Burns Tokens Worth $10M

VGX Price Spikes After Voyager Burns Tokens Worth $10M

On Nov 3rd, the crypto lending platform Voyager executed a substantial VGX token burn, which amounted to 30% of the total supply.

Approximately 83 million VGX tokens were deliberately sent to burn addresses across two transactions On the first transfer, the sender sent a test transaction of 123.45 VGX before moving about 52 million tokens for burning. On the second, they sent an ETH gas fee to itself, then burned 31 million VGX.

While the motive behind this burn remains uncertain, Miguel Morel, CEO of Arkham Intelligence, noted, “It appears purposeful. It’s currently unclear what the motivation would be.”

However, this token burn resulted in an 18% spike in VGX’s price, increasing from around $0.12 to a peak of $0.14 before settling slightly above $0.13. Nevertheless, Voyager’s long-term prospects remain uncertain due to its troubled history.

VGX Price | Source: The Block
VGX Price | Source: The Block

Voyager faced a major setback when it filed for bankruptcy last year, following the failure of a planned takeover by FTX, which was seen as a potential savior. Additionally, the brokerage firm’s aspirations took a hit when US regulators prevented Binance from completing a $1 billion purchase deal.

In March, Voyager announced its decision to liquidate all assets and wind down its operations. According to a court agreement, customers are set to receive only 36% of their funds as repayment.

Adding to Voyager’s troubles, the Commodity Futures Trading Commission (CFTC) recently filed a lawsuit against Voyager CEO Stephen Ehrlich, alleging customer fraud. The regulator claimed that Ehrlich’s risky deals led to over $1 billion in customer losses.

Also Read: Voyager Potentially Suffered Data Breach In Withdrawal Period

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