What is Voyager (VGX)? The Loyalty Programme Token Explained
Take a closer look at the Voyager (VGX) crypto programme that allows its users to take advantage of its incentives and reward tiers.
When people think about cryptocurrencies or crypto tokens, many consider their uses in transferring value (i.e. digital money). There are thousands of cryptocurrencies in circulation now — surely we won’t need all of them to replace fiat currencies, right?
The Voyager token, or VGX for short, is not technically digital ‘money’, in the strictest sense. Instead, it has utility to facilitate a loyalty programme that is part of Voyager Digital’s (LLC) marketing efforts.
So, what is the Voyager token (VGX)?
Voyager tokens are issued to incentivise users of the Voyager crypto trading app. By holding the VGX tokens in their wallet, users can gain access to three levels of reward tiers. Holding at least 500 VGX gives them the rank of Adventurer, 5000 VGX gives them the rank of Explorer, and at least 2000 VGX is required to earn the rank of Navigator.
Each reward tiers give users the right to earn higher rewards based on several actions. For example, the Navigator rank will earn higher rewards if users refer to a friend compared with someone with an Adventurer rank.
The baseline of the VGX staking deposit could earn users up to 7%. An Adventurer, Explorer, and Navigator can earn 0.5%, 1%, and 1.5% more on the potential staking return, respectively. More details of the reward programme can be found on their official website.
It’s important to note that staking in this context is not the same as staking for the Proof of Stake protocol. In general, stakers could earn interest because by depositing their unused tokens, they are providing liquidity to other users who wish to borrow monetary value (contained in VGX) to trade with leverage on Voyager’s platform.
VGX tokens are classified as an ERC-20 token, which is a token class that is powered by Ethereum, the world’s largest smart contract blockchain network to date.
Learn more: What are ERC-20 tokens?
The tokenomics of Voyager tokens
Before investing a cent into VGX, you’ll need to know the ‘tokenomics’ or the basic facts and figures of the tokens. The VGX token has a limited supply of 295,491,293 units. All of them have been issued, and nearly all of them have been circulated in the free market.
This means there is a possibility of greater volatility in the price of VGX, whether in the short term or long term. In economics lingo, as the supply is highly inelastic, the prices will be purely determined by the varying levels of demand for this token. This can give VGX traders a higher potential for earning and risk.
You may find conflicting figures when you refer to sites like coinmarketcap.com or coingecko.com. This is because this figure is taken directly from the latest Voyager token whitepaper.
The whitepaper highlights the utility and technicalities of VGX 2.0, which is the latest version of the Voyager token. Now, you shouldn’t get confused over the version numbers. VGX 2.0 is just VGX, but with more utility when taken into the Voyager ecosystem.
If you’re just holding VGX (any version) for investment or trading, you can simply store them in your Ethereum wallet without caring about the version. So, the version will only become relevant once you’ve sent your VGX tokens into a Voyager app, which automatically swaps the tokens for you at a 1:1 ratio.
That is, if you’re purchasing VGX directly from Easy Crypto, your VGX version will not be relevant unless you’ve transferred the tokens into your Voyager app’s crypto wallet.
Why is there an increase in supply of VGX after VGX 2.0 was released?
If you’ve been paying close attention to the details, you’ll notice that 295,491,293 units is a few million tokens greater than the figures reported by many sources (as they refer to the old VGX). What happened after the release of VGX 2.0?
It’s easy to assume that the Voyager company has issued more tokens. However, this assumption is not true. In reality, over the course of its lifetime, Voyager Digital LLC. has acquired a few crypto trading platforms.
Incidentally, some of these platforms have also issued their own digital tokens to raise funds in an ICO and to offer incentives to their users.
Once acquired, their tokens get swapped to the new VGX 2.0 to be fair with the former users of the acquired trading platforms. This apparent increase in VGX tokens did not hurt the price of the token.
For example, when Voyager acquired LGO crypto exchange, LGO token holders could swap LGO for VGX at the appropriate price ratios. In effect, ex-LGO holders seemed like they’ve always held VGX tokens prior to the swap. For more detail on this swap event, you can refer back to the whitepaper.
Can we trust the team behind Voyager?
Voyager Digital is led by Stephen Ehrlich (CEO) with an extensive experience in brokerage and financial markets, with a specialisation in trading platforms for equity and options trading. He is a former CEO of ETRADE Professional Trading LLC.
The Chairman of the Voyager Foundation is Philip Eytan, who gained experience at Morgan Stanley, and was a portfolio manager at Cerberus Capital. A lesser known fact is that he is one of the founding investors of Uber, Source, and Livestream.
Oscar Salazar is one of the investors of the Voyager Foundation and is best known for being the Chief Technical Officer of Uber.
Gaspard de Dreuzy is a board member for the Voyager Foundation. He is a veteran in the financial market, and a co-founder of Kapitall, Pager, and Trade.it.
Are you bullish on Voyager?
VGX tokens have been listed on a major exchange effective on 17 November 2021, which caused the price to skyrocket by 45% within the very same day. This could indicate a high level of enthusiasm for the token and the business that backs it.
The exchange listing meant that the token now has wider access to investors. This could potentially increase its average price over the long run.
Disclaimer: Easy Crypto is not affiliated with Voyager Digital LLC. Information presented here is purely for informative and educational purposes only. Although a public company, investing in VGX does not grant you the same right as a shareholder of Voyager Digital LLC. Furthermore, Easy Crypto is not a platform for trading equities. Please contact us if you have any questions or concerns.
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Disclaimer: This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated January 6, 2022