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The Traveler Token (VGX-USD) soared 420% in morning trading even though its founder, digital travel, filed for bankruptcy protection. VGX crypto is now changing hands for around 80 cents per token.
Voyager Digital revealed on July 6 that it had filed for bankruptcy the previous day. In its filing, the company revealed that it has approximately $1.3 billion in crypto assets and over $350 million in cash, which are held in an account for the benefit of clients (FBO).
The company said Voyager Digital’s bankruptcy was caused by the collapse of Capital of the Three Arrows (3AC), a hedge fund that had invested heavily in cryptos. Voyager announced that it had given 3AC a $650 million loan. On July 1, Voyager suspended all withdrawals, deposits and rewards from its accounts.
Reassuring news on the bankruptcy of Voyager Digital
July 11, InvestorPlace Writer Eddie Pan reported that Voyager customers should soon be able to get all the money they had on the platform back. He quoted Voyager as saying its customers’ money is FDIC insured and will be available “after a reconciliation and fraud prevention process.”
Also on July 11, Voyager reported that it seeks to enable its customers to regain access to their accounts. The company said its customers would be refunded, but added that they could get their money back through multiple payments and in a different form than when they deposited it.
Price predictions for VGX Crypto
Gov Capital has a one-year price target of $4.90 on the token, while WalletInvestor weighed in with a 12 month prediction of just 2.36 cents for VGX crypto. DigitalCoinPrice wait for the token to have an average price of $1.13 next year.
As of the date of publication, Larry Ramer has not held (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.