The crypto brokerage firm Voyager Digital is facing a tough time as the broader market correction has impacted it. However, the platform appears to have found some respite amid the chaos from its native token.
Accordingly, the VGX token has gained significant value following renewed efforts to drive its price up by concerned entities. Thus, on Wednesday, July 13, the token spiked 178% to reach $0.891, an intraday high.
However, CoinGecko reported that the price had briefly crashed to nearly $0.559. It has regained some significant value at the time of writing, currently priced at $0.717.
Twitter Hashtag to the Rescue
The VGX price rise coincides with the Twitter campaign #PumpVGXJuly18 to drive the recovery of the Voyager Digital network. In addition, a Telegram group dubbed “Voyager Community Recovery Channel” also exists to push the price of the VGX token.
Speculators are joining the latest bandwagon, pushing the token’s price by 400%.
However, the latest development is a reversal of the price downtrend of VGX, which shed nearly 80% at the start of 2022. The price slump has resulted in the token’s collapse by 94.3%, following its all-time high in January 2018. In addition, the price during Voyager’s peak is $12.47.
Meanwhile, MetaformLabs has dismissed claims that it was responsible for the initial price pump. According to the platform, the July 13 price surge was triggered by speculators looking to cash out on the frenzy.
For its part, MetaformLabs has organized a Twitter campaign to help recover the price of Voyager Digital. The campaign to rescue the VGX token began on July 9, and by July 14, it was revealed to have raised $135 million in funds.
https://twitter.com/MetaFormLabs/status/1547276195275874304?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1547276195275874304%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fvoyager-token-skyrockets-as-vgx-pump-scheme-touted
Voyager to Reimburse Customers
Voyager Digital revealed on July 6 that it would issue VGX tokens to customers who had suffered considerable losses. The platform has previously suspended trading in the early days of the month.
According to insider sources, Voyager has previously filed for Chapter 11 bankruptcy, citing debt liquidity issues. The debt issue arose after Three Arrows Capital (3AC) failed to settle its outstanding debt.
However, Voyager’s woe was compounded by a federal attorney in New York who froze 3AC’s assets on July 12. After this incident, Voyager embarked on a restructuring plan to recover part of 3AC’s assets.
Meanwhile, this is partly responsible for the spike in the value of the VGX tokens over the past few days.
However, as noble as the pump campaign was, it was met with some level of doubt by the crypto community. Some commenters indicated that MetaformLabs is unaware of the implications of what it is getting into.
Voyager has yet to clear the air on whether there is a plan for a bailout that it can utilize to reimburse customers.
Meanwhile, the price of the VGX token has plummeted, and it has lost 21% from yesterday’s pump campaign. Whether Voyager can sustain the pump is not yet known as the price gradually declines.