The bankrupt cryptocurrency lender Voyager experienced a nearly 18% surge in its VGX token’s value on Friday following a substantial token burn that saw approximately 83 million tokens sent to burn addresses in two transactions. The token’s price climbed from roughly $0.12 to a peak of $0.14 before settling back at slightly over $0.13.
Notably, changes in the ownership structure of Voyager’s multi-signature wallets can potentially facilitate the creation of new VGX tokens.
The nature of this token burn and subsequent price surge have raised questions. Miguel Morel, CEO of the cryptocurrency data tracking platform Arkham Intelligence, suggested that the move appears intentional. He explained that the tokens were initially sent to a “dead address” in a test transaction, followed by the transfer of tokens to the same address shortly after.
In the case of the other address, ETH was first sent to cover gas fees before tokens were sent to the “dead address” eight minutes later. The motivation behind these actions remains unclear.
Voyager had previously filed for Chapter 11 bankruptcy protection on July 6, 2022, as reported in earlier news. The recent token burn and price surge represent a peculiar development amid the company’s bankruptcy proceedings.
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