Bankrupt Crypto Lender Voyager’s VGX Token Spikes More than 100% After Binance and FTX Reportedly Show Interest to Buy the Company’s Assets

Key highlights:

• Major crypto exchanges Binance and FTX are reportedly both interested in acquiring the assets of bankrupt crypto lender Voyager
• Voyager’s VGX token spiked more than 100% on the news
• The company’s shares also saw a bump on Friday, but are still down over 98% year-to-date

Binance and FTX are reportedly both interested in acquiring Voyager’s assets

Binance and FTX, two of the largest cryptocurrency exchanges in the world, are both reportedly interested in taking over bankrupt cryptocurrency lending firm Voyager. Per the report from CoinDesk, Coinbase was also previously expressing interest, but decided to pull out. In total, at least 22 investors have indicated that they are interested in Voyager’s assets.

The bids for Voyager’s assets have to be submitted by September 6. If an auction is necessary to determine the winner, it will be taking place on September 29.

Voyager filed for Chapter 11 bankruptcy on July 6. The collapse of Voyager is one in a series of dominoes that began falling after the meltdown of Terra’s UST stablecoin and LUNA token in May. Three Arrows Capital, a crypto hedge fund that had large exposure to the Terra ecosystem, defaulted on a $650 million loan it took from Voyager, putting the company in an untenable financial position.

VGX, a token issued by Voyager, has seen a big price spike after the report of Binance and FTX showing interest for Voyager began circulating. At the time of writing, the token is posting a massive +127% 24-hour change, with the price skyrocketing from $0.27 to more than $0.60 today.

Voyager was a publicly-traded company with a listing on the Toronto Stock Exchange, but it was delisted on July 6. Its stock, which now trades on over-the-counter markets under the ticker VYGVQ, rebounded from $0.15 to $0.20 today. From a longer-term perspective, the stock’s price spike is a blip on the radar, as the company’s shares are down a massive 98.4% since January 1.

The VGX token’s market capitalization of about $173 million makes it the 172nd largest crypto asset by market cap. While VGX remains listed on many cryptocurrency exchanges even after Voyager’s bankruptcy, the token’s future seems uncertain at best. However, any big spike in volatility is sure to attract crypto traders—VGX has seen $120 million worth of trading volume on Binance today, and an additional $45.9 million worth of volume on Coinbase Pro. 

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