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Voyager Digital token jumped to February highs.
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The bankruptcy judge accepted that the company could be acquired by Binance.
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These gains could be temporary since there are other hurdles to the deal.
The Voyager Digital (VGX) price was the best-performing cryptocurrency on Wednesday after a legal victory by Binance, the biggest exchange in the world. VGX price soared to a high of $0.6150, the highest level since February 16. It has jumped by more than 86% from the lowest point this year.
Voyager Digital can be acquired
The main reason why the VGX token is soaring is the decision by a US court to allow the acquisition of the company by Binance US. The judge who is overseeing the bankruptcy proceedings said that Binance can go ahead with the $1 billion buyout. He overruled objections by the Securities and Exchange Commission (SEC).
However, there is still a long way to go before the deal is completed since it will need to go other regulatory hurdles. The judge noted that most creditors were in favor of the deal. Voyager was in line to be acquired by FTX, a company that went bankrupt in November last year.
Still, there are many hurdles, including the fact that the SEC is still investigating Binance. In a report by the WSJ, Binance came up with a plan to mask its US operations. Binance US, worked in close collaboration with the main Binance. In a statement, Binance conceded that the two companies worked closely in their early days of the company.
Binance is not regulated in the US and has no headquarters. On the other hand, Binance US is regulated by the country and has thousands of American regulators.
The other hurdle for the Voyager acquisition deal is that FTX is claiming $445 million in a loan it made to Voyager Digital. This loan was made as the company attempted to emerge from bankruptcy. Another hurdle is that the SEC could accuse Voyager of offering VGX as a security without following due process.
VGX price prediction
The VGX crypto price continued rising as investors focused on Voyager Digital’s acquisition. As it rose, the token rose above the key resistance level at $0.5592, the highest level on February 22. It has jumped above all moving averages while the MACD has moved above the neutral point.
Therefore, Voyager will likely pull back in sync with other cryptocurrencies as the focus remains the Federal Reserve. Investors will also focus on the hindrance to the deal. If this happens, Voyager will likely retest the key support at $0.50.