The VGX token value went parabolic on Wednesday as buyers priced in a turnaround of the mum or dad firm. Voyager Digital’s native token rose to a excessive of $0.5155, which was the best stage since June twenty third. According to Binance, it has surged by greater than 220% up 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 this planet. At its peak, the corporate used to deal with quantity price billions of {dollars} day by day. It had greater than a million prospects.
Recently, nonetheless, Voyager has had a spectacular fall from grace. The agency was just lately pressured to droop withdrawals and deposit. It additionally voluntarily determined to file for chapter safety.
The disaster occurred due to the latest crash of Bitcoin and different cryptocurrency costs. Notably, the collapse of Terra and its ecosystem had a direct affect on the corporate. For instance, it had prolonged funds to Three Arrows Capital, one of many hedge funds that misplaced cash when Terra crashed.
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Voyager Digital has additionally come into the highlight now that regulators and regulation enforcement officers are investigating it. As such, most analysts consider that will probably be not possible for the corporate to thrive because it used to earlier than. Besides, it has misplaced the belief of most customers.
The VGX token value is surging as buyers 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 in opposition to Three Arrows Capital. It additionally stated that prospects will be capable of withdraw these funds when the reorganization plan ends.
Therefore, the VGX value is rising as buyers 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 value prediction
The four-hour chart reveals that the Voyager Digital token value has been in a sturdy bullish pattern up 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 shifting averages.
In my view, that is a lifeless cat bounce, which means that the coin will see a main pullback within the subsequent few days. If this occurs, it can probably drop to the assist at $0.15, which is about 70% under the present stage.
