In today's edition of YIYL, (You Invest, You Lose) we catch up with the rollercoaster ride that is Voyager. The number of twists and turns this crypto firm has had would put anyone's head in a spin and I am sure being a customer with funds locked in their platform has to have been one of the most stressful experiences ever.
While customers of services like FTX and Celsius have had their fair share of pain, it has been fairly straightforward, we locked your funds, we're bankrupt and don't hold your breath in getting any money back.
Yes, this is painful, but imagine having to deal with stories of possible recovery several times and still sitting in the same position, this is the issue facing Voyager customers.
Voyager goes bust
In July of this year Voyager caught hands by the market and had to force its customers to hodl paper promises it had no idea if it could ever honour. Once customers got the news they were rightfully up in arms, with the Canadian firm not giving any idea of when it could be resolved or if they would be around post-bankruptcy.
FTX offers to bail out Voyager
After Voyager filed for bankruptcy in early July, FTX U.S. swooped in with a plan to buy the firm's assets for about $1.4 billion—a roughly 8% premium to Voyager's crypto assets at the time
The idea was that FTX would allow for a rolling door of liquidity to allow Voyager to operate and users could have access to their funds. This news was met positively by customers, but it wasn't all it cracked up to be as FTX went tits up. The deal eventually fell through as FTX itself ran into liquidity issues and filed for bankruptcy in November.
So again Voyager customers were left stranded.
Binance offers to bail out Voyager
Now we're hearing that Binance.US provided the "highest and best bid" for its assets with a deal valued at about $1.022 billion, including about $1 billion in Voyager's cryptocurrency portfolio and a further $20 million in "additional consideration."
If the deal goes through Voyager said they could be back in operation and this has driven some positive sentiment. But for how long? There are plenty of eyes on Binance and questions about its financial situation and a deal like this makes very little sense. So we'll have to see if these consolidations by Binance will pay off.
Talk about the price
Voyager, unlike many of these shitcoin firms, is a publicly-traded company listed on the Toronto stock exchange in Canada, which is a little confusing given the fact it also has a tradable token. Usually, an exchange will pick one or the other, like Binance and Crypto.com went for tokens, while Coinbase chose to go public.
I need to make this distinction before we talk about the dumpster fire price of this company. Yes the price popped slightly on the news hitting close to 40 cents a token, but it has been in decline and rightly so for years.
Voyagers native token has lost over 98% of its value trading has high as $12 back in 2018 and while it has had a few pumps along the way, it's always been lower highs as it continues to bleed out.
The coin has traded as low as 8 cents and while some of those bottom buyers may have made some profit, the vast majority of VGX token holders have been cleaned out.
As for the equity of the business, it hasn't done any better, trading at around 0.035 cents US right now down from its peak of $27.39 back in April of 2021.
Even with this latest news, the equity hasn't moved substantially and there is still news of it being delisted which we will have to wait and see, perhaps Binance will want to take it private, who knows?
Image source:
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I don't think Binance will get rekt this cycle, they've been able to handle a bunch of pressure and withdrawals, but we can't rule it out. As long as most customers dont remove their funds, which most dont because they're all shitcoiners who can't hold their own keys, they'll be fine and can play with their customer funds
The idea of DEX's taking over from centralised exchanges is just dumb, where are DEXs meant to get fiat liquidity from? They need stabelecoins, which are issued by centralised institutions.
If you can't access stablecoins or find someone willing to trade you cash for bitcoin for example, you can't get into the market. If you have no onramp to the biggest pool of liquidity which is fiat, then you're dead, DEXs cant survive without CEXs
P2P markets are very different from DEXs and you can tell the health of a P2P market based on the premium above market rates which is still 5 - 50% depending on the payment method and currency, so no CEXs arent going away