On Wednesday, the Voyager Digital VGX token climbed 178% to hit an intraday high of $0.891 before tumbling back to roughly $0.559. This appears to be a new effort to inflate its price that appears to be motivated by the recent “CEL short squeeze.” At the time of writing, it had recovered some ground and was back up to $0.717.
Since the start of the week, the token has increased by more than 400% as investors seem to be hopping on the current bandwagon for easy money.
Voyager Digital VGX token reverses downtrend
This week’s VGX push represents a reversal of the crypto token’s year-long downturn, which has seen it lose about 80% since the beginning of 2022. It is also down 94.3 percent from its all-time high of $12.47 in January 2018.
The price increase has coincided with the development of the Twitter hashtag #PumpVGXJuly18, as well as the formation of a Telegram group dubbed the “Voyager Community Recovery Channel,” which had over 2,100 members at the time of writing.
Rescue attempt?
On July 9, unknown crypto venture firm MetaFormLabs started the pumping of VGX on Twitter and promised to save Voyager using this method. The company revealed the amounts committed for the rescue plan as well as its goal token price on Wednesday.
Following the initial pump, which began on Wednesday as prices rose from $0.15, MetaFormLabs said that it was unrelated to them:
Where there's green there's vultures that prey for low entries. #PumpVGXJuly18 will go ahead as planned on July 18 @ 2pm PST
Today's movement wasn't us, we've not even begun yet.#VGX #Voyager https://t.co/R6dYDSo6Nm
— MetaFormLabs | #PumpVGXJuly18 (@MetaFormLabs) July 13, 2022
The crypto community on Twitter has responded to the pump plan with a fair dose of suspicion. On Voyager’s official Twitter account, no indication of any bailout preparations could be seen.
Under restructure
On July 6, Voyager Digital presented its Plan of Reorganization, which included giving Voyager tokens to customers who had experienced losses due to the company’s earlier-than-expected suspension of trading. Voyager already filed for Chapter 11 bankruptcy in New York on the same day, citing financial concerns caused by Three Arrows Capital’s (3AC) outstanding debts.
The latest twist in the matter occurred on Tuesday when a federal judge in New York froze 3AC’s remaining assets. Another component of the restructuring plan is the recovery of assets from 3AC, which could explain why the perceived value of the VGX tokens has increased.