Voyager Token
Crypto Overview
Overview and Recent Events
Voyager Token (VGX) was the native cryptocurrency of Voyager Digital, a crypto lending platform that filed for Chapter 11 bankruptcy in July 2022. The platform ceased operations and customer withdrawals following the collapse of Three Arrows Capital.
Intended Utility
VGX was designed as a utility token for the Voyager platform, offering holders benefits like cashback rewards, interest boost on crypto holdings, and reduced trading fees. The token was meant to incentivize platform usage and customer loyalty.
Actual Utility
Following Voyager's bankruptcy, VGX has effectively lost its utility. The platform is no longer operational, and token holders cannot access the promised benefits. The bankruptcy proceedings have left many customers with frozen assets.
Business Model Analysis
The business model relied heavily on crypto lending and interest-bearing products, which are fundamentally problematic from an Islamic finance perspective due to the involvement of riba (interest). The platform's collapse revealed significant exposure to risky lending practices.
Token Distribution and Governance
Token distribution showed considerable concentration among platform operators and early investors. The bankruptcy proceedings revealed that customer assets were commingled with operational funds, raising serious concerns about the management of user funds.
Crypto Impact
To assign a comfort level investing in Voyager Token from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Voyager Token.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.