An unknown venture capital firm, MetaFormLabs, may be involved in a spike in the asset’s price

VGX token rate pumps by 559% in 24 hours

14.07.2022 - 11:15

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2 min

What’s new? The rate of the native token, VGX, of the cryptocurrency broker Voyager Digital pumped by 559%, from $0,1437 on July 12 to $0,9476 on July 13. In this, Voyager filed for bankruptcy as early as July 6 in order to restructure. A sharp spike in the price of VGX came 3 days after MetaFormLabs, an unknown venture capital firm, launched the hashtag #PumpVGXJuly18 on Twitter. As of July 14, 11:20 UTC, it is trading at $0,528, according to Binance.

What might have influenced the rise? In a post published on July 9, representatives of MetaFormLabs said:

“Anything we do will directly help Voyager. Once we create a higher token and share price the company would have to sell less to reclaim USD equity required to stabilize the company.”

A group called Voyager Community Recovery Channel has also been created in the Telegram messenger, with 2172 members at the time of writing.

Herewith, representatives of MetaFormLabs denied any involvement in the sharp spike in the VGX price on July 13, noting that the pump will take place, as specified in the hashtag, on July 18 at 22:00 UTC (14:00 PST).

There is no specific information about MetaFormLabs itself. The first Twitter post appeared on June 14, in which the company says that it rebranded itself, without mentioning the previous name or the people in management positions. The info does not list the company’s website and the domain name, metaformlabs.com, is up for sale.

How did events develop? Voyager halted all operations on July 1, when the volume of loans exceeded $1,1 billion and the platform had $685 million remaining in its accounts. The bankrupt cryptocurrency hedge fund Three Arrows Capital owes more than $650 million to the broker. It is currently undergoing court-ordered liquidation proceedings, with the whereabouts of its co-founders unknown.

On July 12, Voyager unveiled a plan to recover customer funds. According to the company, the fiat deposits will be returned from accounts at Metropolitan Commercial Bank, or compensated by the US Federal Deposit Insurance Corporation (FDIC). The plan to recover cryptocurrencies will require court approval.

Author:

Michael Golikov Michael Golikov

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