VGX up 20% After Voyager Burned 30% of Token Total Supply

Voyager’s native token, VGX, soared 20% on Friday after the crypto brokerage firm burned 83 million of the coin, valued at over $11 million. VGX ticked from $0.12 to $0.14 before settling at $0.135 at press time.

Etherscan data showed that a wallet named “Voyager 1” moved over 83 million VGX in two separate transactions to a burn address. On the first transfer, the sender sent a test transaction of 123.45 VGX before moving about 52 million of the tokens for burning. On the second transaction, they sent an ETH gas fee to itself, then moved 31 million VGX to the burn address. The transaction was the first from the address in 225 days, on-chain data revealed.

A Whooping 30% Total Supply

The total amount of VGX moved from the Voyager-linked wallet accounts for 30% of the token’s entire supply. Voyager is yet to disclose the reason behind the burn, but the transaction seemed intentional, according to the CEO of Arkham Intelligence.

“It appears purposeful. It’s currently unclear what the motivation would be,” CEO Miguel Morel said.

Voyager’s future came crashing down when it filed for bankruptcy last year, as its alleged savior, FTX, failed to complete the intended takeover. The brokerage firm was dealt another blow after US regulators forced Binance out of an agreed $1 billion purchase.

What Next for Voyager

In March, the firm announced it would liquidate all its assets and ultimately wind down the company. According to the court agreement, Voyager would repay customers 36% of their funds.

The Commodity Futures Trading Commission (CTFC) recently sued Voyager’s CEO, Stephen Ehrlich, for defrauding customers. The regulator claimed that the co-founder was involved in risky deals that led to customer losses of over $1 billion.