Voyager Token (VGX) soars after a 30% token provide burn

• VGX surges 20% post-30% token burn.
• 52 million VGX tokens have been despatched to a burn tackle.
• The burn occasion comes as Voyager manoeuvres its Chapter 11 chapter.

In a stunning flip of occasions, the native token of Voyager Digital, Voyager Token (VGX), witnessed a outstanding surge in its value, gaining 20% in worth, following the switch of 52 million tokens to a burn tackle.

The VGX token value had nevertheless began taking place, at press time as seen within the chart under.

30% of VGX token provide bunt

On-chain information from Etherscan reveals that the pockets in query is linked to Voyager and was named “Voyager 1.” It had remained dormant for 225 days.

This pockets instantly got here to life, initiating a check transaction of 123.45 tokens earlier than continuing to switch a bigger batch valued at $7.3 million.

This substantial switch was directed in direction of a burn tackle, a cryptocurrency pockets the place tokens are rendered inaccessible, primarily eliminating them from circulation.

Voyager’s troubled previous

Voyager Digital’s current historical past has been marked by turbulence, with the corporate submitting for chapter following the collapse of FTX, a cryptocurrency alternate that was in discussions to amass Voyager earlier than its abrupt implosion. The repercussions of FTX’s troubles prolonged throughout the cryptocurrency market, resulting in a widespread downturn.

It stays unclear why Voyager determined to ship such a good portion of VGX tokens to a burn tackle. Nonetheless, this transfer might have a number of implications within the crypto house.

Token burns are sometimes employed to cut back the entire provide of a cryptocurrency, creating a way of shortage and, in flip, probably bolstering the worth of the remaining tokens in circulation. The market’s response to this occasion was notably constructive, with VGX witnessing a 20% value improve, reflecting investor optimism concerning the potential worth appreciation as a result of diminished provide.

Voyager Digital had earlier introduced that it supposed to liquidate belongings in relation to its ongoing monetary difficulties and its technique to handle belongings and liabilities throughout the context of its chapter proceedings.