Voyager Crypto: A Smart Investment Move?

Voyager is a cryptocurrency broker that offers a mobile-first trading platform. The firm was founded in 2017 and is publicly traded. It offers commission-free trading on more than 50 digital assets and lets users earn interest for maintaining minimum balances on certain cryptocurrencies. It is available in all US states except New York. However, it is important to note that Voyager recently filed for Chapter 11 bankruptcy and is undergoing bankruptcy proceedings, which raises concerns about the safety of client funds and trading capabilities.

Voyager's bankruptcy proceedings and its impact on its reliability as a crypto exchange

On July 6, 2022, Voyager Digital, a U.S. crypto lender, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. The company suffered significant losses due to its exposure to the now-bankrupt crypto hedge fund Three Arrows Capital, which defaulted on a loan of over $650 million from Voyager. In its bankruptcy filing, Voyager listed assets and liabilities of between $1 billion and $10 billion. The company stated that it held approximately $1.3 billion in crypto assets and over $350 million in cash on behalf of its customers.

Voyager's bankruptcy proceedings have had a significant impact on its reliability as a crypto exchange. The company paused all withdrawals, deposits, and trading on its platform before filing for bankruptcy, causing concerns about the safety of client funds. Voyager's bankruptcy also highlights the risks associated with investing in cryptocurrencies, as the value of Voyager's shares declined by nearly 98% since the start of 2022.

During the bankruptcy process, Voyager's customers faced uncertainty regarding the recovery of their funds. The company's initial attempts to sell its assets to FTX and Binance.US failed due to the collapse of FTX and the regulatory climate. Eventually, a liquidation plan was approved by a U.S. Bankruptcy Judge, allowing Voyager to return about $1.33 billion in crypto assets to customers. However, the recovery amount depended on the outcome of future litigation, with an initial payout of approximately 35% expected.

The impact of Voyager's bankruptcy proceedings on its reliability as a crypto exchange is significant. The company's financial troubles and the uncertainty surrounding fund recovery have likely affected customer trust. Additionally, the bankruptcy highlights the risks of investing in cryptocurrencies and the potential for losses during market downturns. While Voyager's bankruptcy plan aims to reimburse customers, the process has been complex and dependent on various factors. Therefore, Voyager's bankruptcy proceedings have raised questions about the safety and reliability of the platform as a crypto exchange.

The interest that can be earned on Voyager

Voyager is a cryptocurrency investing app for iOS and Android that connects you to more than a dozen crypto exchanges and offers more than 50 digital currencies. It is undergoing bankruptcy proceedings, which means there is a chance that client funds and/or trading capabilities could be at risk. However, it offers the opportunity to earn high interest rates of up to 10% APY on some assets, though the rate varies depending on the currency.

• Open a Voyager account: You will need to identify yourself because of Securities and Exchange Commission (SEC) regulations. You will need to input your Social Security number, ID card, and other personal information to get access as a U.S. customer.
• Purchase cryptocurrency: Voyager offers yields on over 30 different cryptocurrencies. The interest rates vary by crypto, and the full list can be found on their website.
• Maintain the minimum monthly balance: To earn interest, you must hold the required minimum balance. Interest is calculated based on average daily holdings and paid out in the interest-bearing asset you fund your account with by the 5th business day of the month.

It is important to note that the biggest risk when earning interest through Voyager is the same as with any centralized exchange: a potential hack. While exchanges typically store their users' funds in cold storage wallets, some funds are needed in hot wallets for liquidity. Digital assets held in cold wallets are generally considered bullet-proof, but hot wallets are vulnerable to internet-based breaches.

The security of Voyager

Voyager is a U.S.-based and U.S.-regulated, publicly traded company. Up to $250,000 USD held in your Voyager account is FDIC-insured through partner banks. This means that Voyager offers a level of security for your cash that is uninvested. However, it is important to note that FDIC insurance does not cover invested cryptocurrency holdings.

Your personal and financial information on the Voyager platform is also protected using industry-standard security protocols, including encrypted storage and secure data transmission. This includes when you connect your bank account to the platform through Plaid, which uses bank-level security and is trusted and used by more than 2,000 financial institutions in North America.

The Voyager app also includes 2-factor authentication. This means that when you log into the app, you will be prompted to enter a code sent to you by text or email, ensuring that only you have access to your account.

In addition, Voyager's Smart Order Routing system connects with 12 of the largest and most reputable exchanges before executing your order to ensure that you are getting the most favourable exchange rate. This provides investors with smaller spreads between bid and ask prices, as well as higher levels of liquidity, making it easier to enter and exit positions.

However, it is worth noting that Voyager has faced liquidity issues and filed for bankruptcy. There is a chance that client funds and/or trading capabilities could be at risk.

Voyager's customer support

Voyager is a cryptocurrency investing app for iOS and Android that connects you to multiple crypto exchanges and offers more than 50 digital currencies. However, the company has faced liquidity issues and filed for bankruptcy, which means there is uncertainty about its future and whether client funds and trading capabilities are at risk.

Voyagers Customer Support

Voyager Internet Customer Service can be reached via phone or email. The best phone number to call is +64 800 047 7333, and the best email to contact them is [email protected].

The longest wait times for a response are on Tuesdays, while the shortest wait times are on Sundays and Wednesdays. Voyager Internet's corporate office address is:

Voyager Internet Ltd

Level 3, 5 Nelson Street,

Auckland, Auckland 1010

New Zealand

The company also has a mailing address in the United States:

Cambium Learning Group

17855 Dallas Parkway, Suite 400

Dallas, TX 75287

The office hours for the US address are Monday through Friday, 8:00 AM to 5:30 PM Central Time.

The Voyager website also offers a Help Center with a FAQ section, and a contact form to fill out for customer support.

Voyager's competitors

Voyager is a cryptocurrency broker that provides retail and institutional investors with a turnkey solution to trade crypto assets. It is currently undergoing bankruptcy proceedings, which means it is not recommended as a reliable cryptocurrency exchange.

Binance.US

Binance.US is a cryptocurrency exchange company that offers an initial coin offering (ICO) platform, blockchain media, and blockchain funds. It was founded in 2019 and is based in San Francisco, California. The company provides a platform for buying, selling, and trading cryptocurrencies and offers services such as margin trading, futures contracts, and peer-to-peer transactions.

Robinhood

Robinhood is a well-known stock trading and investing application. It allows customers to buy and sell stocks, options, exchange-traded funds (ETFs), and cryptocurrencies. Robinhood is known for its user-friendly interface and commission-free trades. It is a good option for those who want a simple and cost-effective way to start investing in cryptocurrencies.

Gemini

Gemini is a cryptocurrency exchange and custodian platform that allows customers to buy, sell, and store digital assets such as Bitcoin and Ethereum. It was founded in 2015 and is based in New York, USA. Gemini is known for its secure and compliant platform, making it a trusted choice for individuals and institutions.

Coinbase

Coinbase is one of the largest cryptocurrency exchanges in the US, offering a user-friendly interface, robust security measures, and a wide range of supported cryptocurrencies. However, Coinbase has been criticised for its high fees, limited crypto selection, and extensive anti-fraud features that may be inconvenient for some traders.

Kraken

Kraken is a well-established digital currency exchange that has been operating for years, gaining the trust of its users through its industry-leading security practices. It is an ideal exchange for large transfers and supports a variety of cryptocurrencies, including new tokens. Kraken provides a secure and reliable platform for traders and investors.

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