The native token for the embattled crypto brokerage Voyager Digital has skyrocketed in what appears to be a brand new effort to inflate its value seemingly impressed by the current “CEL quick squeeze.”
On Wednesday, Voyager’s VGX token surged 178% to hit an intraday excessive of $0.891 earlier than falling again to round $0.559, in line with CoinGecko. It had regained floor again as much as $0.717 on the time of writing.
The value rise has coincided with the looks of a Twitter hashtag referred to as #PumpVGXJuly18, as effectively as the formation of a Telegram group referred to as the “Voyager Neighborhood Restoration Channel,” which had greater than 2,100 members on the time of writing.
The token has gained greater than 400% because the starting of the week as speculators look like leaping aboard the most recent fast buck bandwagon.
This week’s VGX pump is a reversal of a gradual downtrend for the crypto token this yr, shedding virtually 80% because the starting of 2022. It is usually down 94.3% since its January 2018 all-time excessive of $12.47.
On July 6, Voyager Digital announced its restructuring plan, which would come with issuing Voyager tokens to prospects that had suffered losses following its suspension of buying and selling earlier within the month. The identical day, the corporate filed for Chapter 11 chapter in New York, citing liquidity points arising from Three Arrows Capital’s (3AC) excellent money owed.
The most recent twist within the saga got here when a federal decide in New York froze the remaining property of 3AC on Tuesda. One other a part of the restructuring plan contains any restoration of property from 3AC, which might additionally partly clarify the rise within the perceived worth of the VGX tokens.
Unknown crypto enterprise agency MetaFormLabs, which initiated the transfer on Twitter to pump VGX on July 9, has pledged to rescue Voyager by this implies. On Wednesday, the agency detailed its token value goal, and the quantities pledged for the rescue package deal:
“Now we have set a brand new goal vary of 5USD-8USD. At the moment, we now have 50,000,000USD internally and 67,000,000USD pledged by well-known crypto fans.”
By Thursday, it claimed to have $135 million in funds for the rescue package deal, which can be introduced in full on July 18, coinciding with its token pump peak plans.
1 factor is obvious.
Do not say we did not offer you any pre warnings of our intentions.#PumpVGXJuly18
July 18 2022 @ 2PM PST
We’ll cease sharing actual quantities we now have pledged.
Present complete prepared for July 18: 135,000,00USD+
Whoever shorts will most likely get swallowed complete.
— MetaFormLabs | #PumpVGXJuly18 (@MetaFormLabs) July 13, 2022
Following the preliminary pump, which started on Wednesday as costs lifted off from $0.15, MetaFormLabs asserted that this was nothing to do with them:
“The place there’s inexperienced there’s vultures that prey for low entries. #PumpVGXJuly18 will go forward as deliberate on July 18 @ 2pm PST. As we speak’s motion wasn’t us, we’ve not even begun but.”
The pump scheme has been met with a wholesome dose of skepticism from the crypto neighborhood on Twitter.
Relating to #VGX and the “Pump $VGX” going round…
Know what you might be moving into. A number of provide is locked up on Voyager which may skew pricing. $VGX optimism can doubtlessly assist Voyager make prospects complete, however know the chance you take.
— shingolavine.eth (@shingolavine) July 13, 2022
There was no mention of any bailout plans on Voyager’s official Twitter feed.
Associated: Investors lament potentially lost ‘millions’ on Voyager bankruptcy
Cointelegraph reached out to MetaFormLabs for additional particulars in response to their name to take action however had not heard again by the point this text was revealed.
In the meantime, VGX was already dumping and had misplaced 21% from its preliminary pump yesterday. An identical pump and dump occurred with the newly launched Terra (LUNA) tokens, which surged above $10 a few days after they went reside in late Might, solely to dump to round $2.00 every week later.