Voyager Digital Withdrawal Limits Spell End for Crypto Platform – Sell VGX?


Voyager Digital Withdrawal Limits Spell End for Crypto Platform - Sell VG

The bearish crypto market is still causing ripple effects across the sector. Voyager Digital, a crypto brokerage platform based in Toronto, seems to be the latest victim of liquidity issues because of the ongoing crash. The firm has lowered the daily withdrawal limit to $10,000.

Voyager lowers withdrawal limits to $10,000

On Wednesday, Voyager published an update on its website saying that the withdrawal limit had been lowered from $25,000 to $10,000. The lowered limit comes shortly after the firm revealed its exposure to Three Arrows Capital, a crypto hedge fund that is currently struggling.

The company is joining the list of top crypto firms that have announced halting withdrawals because of the ongoing bear market. This month alone, several companies such as Celsius Network, Babel Finance, and Finblox have halted services citing extreme market conditions.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

Voyager’s native token, VGX, has registered a 6.8% dip following the announcement. The token could follow the same trend as CEL, which registered a massive drop after the Celsius Network halted withdrawals. While VGX has dipped, the global cryptocurrency market cap has gained by 3% during the past 24 hours.

Investors could buy VGX and combat the selling pressure if the company announced a recovery plan. However, the market sentiment is still bearish following the firm’s recently disclosed exposure to Three Arrows Capital.

Voyager’s exposure to Three Arrows Capital

On Wednesday, Voyager Shares (VOYG) dropped by over 60% after the company revealed an exposure of more than $650 million in the struggling Three Arrows Capital. The exposure involves 15,250 Bitcoin valued at around $307 million and $350 million worth of the USDC stablecoin.

Voyager has reached out to 3AC to have the loan repaid. In the company’s announcement, it said that it had made a request for a repayment of $25 million USDC by June 24. It has also requested repayment of the entire Bitcoin and USDC loan by June 27. However, it is unsure if the repayment will be made.

Voyager is a platform that supports the trading of cryptocurrencies and offers crypto staking services. Therefore, the company needs liquidity to pay the yield generated from users who have deposited funds on the platform.

Voyager is fighting to find a solid footing amid the bearish sentiment. The exchange secured a $200 million loan from Sam Bankman-Fried’s Alameda Research. Sam Bankman-Fried, the CEO of FTX, has been stepping in to bail out struggling crypto firms.

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Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.






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