Voyager: Crypto For All (April 2022 Update)

Recently, Voyager Digital Ltd (VYGVF) stock and VGX token prices have taken a dive.

There's no doubt that some of the price action is linked to the wider crypto market. Markets hate uncertainty and there's plenty of that stemming from rising inflation, interest rates and events in Ukraine.

However, there have also been a number of news stories - such as this one - that Voyager is aware of possible cease and desist orders for its interest-earning cryptocurrency product.

Cease and Desist!

The US states of New Jersey, Indiana, Kentucky and Oklahoma are questioning whether Voyager should register as a 'security' and may take further action.

While that sounds scary, Voyager CEO Steve Ehrlich is not overly concerned.

In a press release dated April 5th 2022, he said, "I want to emphasize to our shareholders and customers that only one of our products is noted in the Orders."

"Voyager has always recognized that the US regulatory framework must evolve, and in some cases completely transform, to address the needs of the rapidly expanding crypto sector."

"Historically, Voyager has advocated for thoughtful regulation, which is a natural progression for this asset class."

"We believe tailored regulation will spur increased confidence and adoption of crypto assets."

"Nonetheless, Voyager continues to pursue its strategy to innovate and grow the business and position the Company as a leader in the crypto asset market."

Ehrlich further clarified his position in an interview just a couple of days ago in which he said that there's been no impact on the Voyager business.

Some key points that I picked up from the interview are that if the states say Voyager must register as a security, then they'll do it. Ehrlich said, "the business isn't going away".

The interviewer also asked if there is anything that an investor should be concerned about and Steve said "no".

He explained that crypto is completely new, that politicians don't understand it and that he is committed to helping them define the regulations.

That's all very reassuring, but of course there are still risks that the states will take action anyway. Steve does seem disappointed that he has consistently worked with regulators and then they pull this out of the hat! 

Crypto For All

In a press release dated 25th April 2022, Voyager Digital Ltd launched a new "Crypto For All" campaign as well as announcing key business milestones.

Firstly, the "Crypto for All" campaign "brings more humanity and accessibility to the world of crypto".

It features "Voyager customers from a variety of backgrounds sharing their thoughts and experiences with crypto and Voyager--highlighting transparency, inclusivity, freedom, and opportunity".

Here's a video sample of the campaign...

It's great to see Voyager actively acquiring new customers, but I was much more interested in the key business milestones and Steve Ehrlich's quotes.

The press release stated that Voyager has "completed over 36 million consumer crypto transactions since it first released its mobile app, over 80% of which have been completed in the past 12 months".

In addition, Voyager has "exceeded over $5.5 billion in net new retail deposits since inception, with 73% of those new deposits completed in the 12 months ended March 31, 2022".

Some huge numbers there, especially over the previous 12 months which indicate very healthy growth.

Ehrlich said, "even amid this inevitable period of regulatory uncertainty, we have not seen any material impacts on our business."

He continued, "We continue to see healthy growth in net new dollar and crypto deposits as well as increased customer engagement on the platform." 

Finally, he said, "It is an exciting time for crypto, and I couldn't be more optimistic about our company and our future."

Of course, the CEO is always going to try and sound optimistic, but I don't hear any concerns at all. If he was worried, then I'd expect some notes of caution... but there's nothing.

Buy, Sell or HODL?

The year-to-date price charts for both VYVGF and VGX don't look good!

This is the stock price...

Voyager (VYVGF) price chart (2022 YTD)

And this is the VGX token...

Voyager (VGX) price chart (2022 YTD)

Now... I bought the VGX token a very long time ago at $0.05 when it first launched as Bitquence. I'm more than happy to sit on my VGX long-term.

As for Voyager Digital Ltd stock, I bought at $9.91 so that investment has taken a hit.

Given Steve Ehrlich's optimism and the latest news coming out of Voyager itself, I've decided to average down.

I have bought more VYVGF stock at $3.32 which brings my average cost price down to $5.84.

That still leaves me quite a way from break-even, but not nearly as far as it was!