Voyager Gets $610 Million from Selling Shiba Inu, ETH and VGX U.Today
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Voyager Digital token jumped to February highs.
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The bankruptcy judge accepted that the company could be acquired by Binance.
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These gains could be temporary since there are other hurdles to the deal.
The Voyager Digital (VGX) price was the best-performing cryptocurrency on Wednesday after a legal victory by Binance, the biggest exchange in the world. VGX price soared to a high of $0.6150, the highest level since February 16. It has jumped by more than 86% from the lowest point this year.
Voyager Digital can be acquired
The main reason why the VGX token is soaring is the decision by a US court to allow the acquisition of the company by Binance US. The judge who is overseeing the bankruptcy proceedings said that Binance can go ahead with the $1 billion buyout. He overruled objections by the Securities and Exchange Commission (SEC).
However, there is still a long way to go before the deal is completed since it will need to go other regulatory hurdles. The judge noted that most creditors were in favor of the deal. Voyager was in line to be acquired by FTX, a company that went bankrupt in November last year.
Still, there are many hurdles, including the fact that the SEC is still investigating Binance. In a report by the WSJ, Binance came up with a plan to mask its US operations. Binance US, worked in close collaboration with the main Binance. In a statement, Binance conceded that the two companies worked closely in their early days of the company.
Binance is not regulated in the US and has no headquarters. On the other hand, Binance US is regulated by the country and has thousands of American regulators.
The other hurdle for the Voyager acquisition deal is that FTX is claiming $445 million in a loan it made to Voyager Digital. This loan was made as the company attempted to emerge from bankruptcy. Another hurdle is that the SEC could accuse Voyager of offering VGX as a security without following due process.
VGX price prediction
The VGX crypto price continued rising as investors focused on Voyager Digital’s acquisition. As it rose, the token rose above the key resistance level at $0.5592, the highest level on February 22. It has jumped above all moving averages while the MACD has moved above the neutral point.
Therefore, Voyager will likely pull back in sync with other cryptocurrencies as the focus remains the Federal Reserve. Investors will also focus on the hindrance to the deal. If this happens, Voyager will likely retest the key support at $0.50.
How to buy Voyager Digital
Swapzone
Swapzone is a crypto exchange aggregator that operates as a gateway between the cryptocurrency community and exchange services. Swapzone aims to provide a convenient interface, safe user flow, and crystal-clear data for users to find the best exchange rates among the whole cryptocurrency market.
Bitvavo
The Bitvavo platform was launched in 2018, with the goal to bridge the gap between traditional currencies and digital assets. Bitvavo is making digital assets accessible to everyone, by offering transparent fees, a wide range of assets and an easy to use platform.
Voyager Digital price made a strong recovery in the past few days amid rising expectations that the company will soon be acquired out of bankruptcy. The VGX token rose to a high of $0.7785, which was the highest level since September 16. It has risen by more than 30% from its lowest level last week.
Voyager Digital to be acquired
Voyager Digital was a leading Canadian cryptocurrency exchange that served thousands of people internationally. The company became one of the biggest victims of the recent cryptocurrency crash as it was forced to file for bankruptcy a few months ago.
Voyager Digital has been in court as the management attempts to restructure its finances. As such, there is a growing sense of expectation that the company will soon be acquired at a throw-away price. The leading potential acquirers are FTX and Wave Finance.
Last week, it emerged that FTX had taken a pole position in acquiring the company. According to court filings, its bid has been higher than that of Wave Finance. FTX has been raising capital from investors to aid a potential acquisition.
The most recent update was that Voyager Digital asked the bankruptcy court in New York to unwind a loan it made to Alameda Research. The loan was mostly dominated in cryptocurrencies like BTC, USDC, and ether.
The new development is notable since Alameda and FTX have similar ownership. Sam Bankman-Fried is a major shareholder in the two companies.
Therefore, the VGX price has risen as investors anticipate that Voyager Digital will resume operations soon. Still, it is too early to determine whether the company will be acquired. And if it does, it is unclear what the new owners will do with the VGX token.
It is also worth noting that there is a disconnect between Voyager Digital’s fundamentals and that of the VGX token.
VGX price prediction
The four-hour chart shows that the VGX token price has been in a bearish trend in the past few days. It has fallen by more than 50% from the highest level this year. The coin formed a downward trend that is shown in black. It has moved to the 25-day and 50-day moving averages and the 50% Fibonacci Retracement level.
Therefore, there is a likelihood that it will move to the lower side of the descending channel at $0.550. A move above the resistance level at $0.7500 will invalidate the bearish view.
The VGX price surged to the highest point since July 18 as the bidding war for Voyager Digital continued. The token rose to a high of $0.6872, which was almost 400% above the lowest level this year. As a result, its total market cap surged to over $182 million.
Why is Voyager Digital token rising?
Voyager Digital was a leading Canadian cryptocurrency exchange that handled billions of dollars every week. The situation changed a few months ago following the crash of Terra’s ecosystem, Celsius, and Three Arrow Capital.
Voyager Digital, facing a major cash squeeze, decided to file for voluntary bankruptcy in a bid to organize its resources. It also decided to stop deposits, withdrawals, and the creation of new accounts. The VGX token continued trading.
Behind the scenes, a bidding war by some of the biggest companies in the crypto industry like Coinbase, FTX, and Binance. In total, there were about 22 suitors for the company.
Now, the VGX token price rose after it emerged that FTX and Binance were the main contenders. According to Coindesk, Binance has moved aggressively to acquire those assets. FTX, which made an offer to buy the company last month, is still pursuing the company’s assets.
Coinbase had partnered with Callaway Capital Management to launch a bid but then walked away. Besides, the company’s stock price has crashed hard this year.
Therefore, the VGX price is rising as investors focus on the future of Voyager now that it seems like it will be saved by a bigger company. The rise is also part of a short squeeze that has been going on in the past few months.
VGX price prediction
The four-hour chart shows that the Voyager Digital price has been in a bearish trend in the past few weeks. In this period, the coin formed a falling wedge pattern, which is usually a bullish sign. This pattern also explains why the coin has gone parabolic in the past few days.
Voyager moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved above the overbought level. Therefore, I suspect that the coin will now retreat as the enthusiasm about the company’s acquisition fades. If this happens, the next key support at $0.3800.
The VGX token price went parabolic on Wednesday as investors priced in a turnaround of the parent company. Voyager Digital’s native token rose to a high of $0.5155, which was the highest level since June 23rd. According to Binance, it has surged by more than 220% in the past 24 hours. It has also jumped by 240% from its lowest point this year.
Why is Voyager Digital soaring?
Voyager Digital was one of the biggest cryptocurrency exchanges in the world. At its peak, the company used to handle volume worth billions of dollars every day. It had more than a million customers.
Recently, however, Voyager has had a spectacular fall from grace. The firm was recently forced to suspend withdrawals and deposit. It also voluntarily decided to file for bankruptcy protection.
The crisis happened because of the recent crash of Bitcoin and other cryptocurrency prices. Notably, the collapse of Terra and its ecosystem had a direct impact on the company. For example, it had extended funds to Three Arrows Capital, one of the hedge funds that lost money when Terra crashed.
Ignore Voyager Digital. Here are the best crypto exchanges.
Voyager Digital has also come into the spotlight now that regulators and law enforcement officials are investigating it. As such, most analysts believe that it will be impossible for the company to thrive as it used to before. Besides, it has lost the trust of most users.
The VGX token price is surging as investors react to a statement the company published on Tuesday. The company reiterated that it held about $1.3 billion of crypto assets on its platform. It also has claims against Three Arrows Capital. It also said that customers will be able to withdraw these funds when the reorganization plan ends.
Therefore, the VGX price is rising as investors cheer these events. As I wrote before, assets in trouble are also ripe for pump and dump schemes. For example, we saw the Celsius token jump sharply even as the company’s challenges emerged. Hertz shares also jumped after the company went bankrupt.
VGX token price prediction
The four-hour chart shows that the Voyager Digital token price has been in a strong bullish trend in the past few hours. The coin managed to move above the descending trendline shown in blue. It also jumped above the 25-period and 50-period moving averages.
In my view, this is a dead cat bounce, meaning that the coin will see a major pullback in the next few days. If this happens, it will likely drop to the support at $0.15, which is about 70% below the current level.