A key loser of this week’s market is Voyager Digital (OTCMKTS:VYGVF). These shares have certainly fluctuated lately and the decline of over 23% in VYGVF this week is notable.
Voyager Digital is an interesting company to assess. Similar to other crypto platforms, it has looked to increase its presence in the crypto market via various products. The platform enables users to buy, sell and trade a variety of crypto assets across multiple centralized marketplaces in one account. It sounds like a good business model, for those bullish on the crypto sector.
Of course, though, the crypto sector itself is volatile. In recent months, VYGVF stock has generally followed crypto prices lower. These macro headwinds have been hard to escape. And, by and large, the same concerns have hit the entire sector.
That said, there are also some company-specific problems surfacing with Voyager Digital today. So, let’s dive into what’s driving shares of this crypto company downward.
VYGVF Stock Drops on Regulatory Crackdown
Yesterday it was announced that regulators across “at least seven U.S. states” are probing Voyager Digital. In particular, regulators have started to look into the company’s interest-bearing crypto accounts. Their concern? Whether Voyager’s Earn Program could be involved in selling unregistered securities.
Other cryptocurrencies and crypto platforms have come under fire with similar allegations. The question of whether crypto is a security or not is something still being debated in the courts. Right now, there’s no set precedent on this front.
However, regulators looking to safeguard investors currently appear to have no choice but to investigate the matter. Other high-profile crackdowns — such as the one that saw BlockFi pay a $100 million fine — do give investors some idea of where this ordeal could settle.
For now, Voyager claims it’s aware of the cease and desist order and is working with regulators to “clarify the statements it believes are inaccurate.” Looking forward, it appears the order will affect Voyager’s ability to offer new accounts and expand its growing Earn Program. Accordingly, investors are now selling VYGVF stock heavily. Today, trading volume surpassed 2.8 million. The stock’s three-month average volume is around 578,000 shares.
VGX Token
Although not hit as hard as one might expect, the voyager token took a downturn due to the news after what was previously a positive week for the coin.
Voyager Customer Reactions
Although the news could seem troublesome to some, die-hard fans of both voyager digital and their VGX token have remained optimistic with one user of a popular Facebook group stating “Buy the dip!”. A relatively common suggestion among fans whenever stock or crypto prices falter.
Others feel this is just a move for governments to take control of cryptocurrency and force the public into keeping the status quo with one comment stating “They can control brokerage & Exchanges if it operates on their land. No, they cannot control cryptocurrency. They’re trying whatever they can to get people to use their Monopoly money again. They sure do not want USDC lending rate at 9%+.. that beats their .05%”.
For those really concerned about the changes, Voyager Digitals CEO actually addressed this in a recent AMA on Reddit and was aware it may be an issue that the company has plans in place for.
Whatever the future holds for Voyager Digital, it is bound to be interesting.
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