Alt coins are the crypto investments that are grabbing all of the headline attention. Indeed, the prices of alt coins like Voyager Token (CCC:VGX-USD) have been on an absolute tear of late. In the past year, Voyager Token has been a 16-bagger for investors.
Voyager’s VGX token is among one of the most unique cryptocurrencies I’ve come across. Voyager’s core platform provides investors with a turnkey solution to trade cryptocurrencies, as well as earn interest on crypto assets.
A number of decentralized exchanges already exist for the purpose of trading cryptocurrencies, so that’s really not new. However, the fact that crypto investors are able to earn a significant yield on their investments is something worth diving into.
So, let’s do that.
Looking for Yield On Crypto Investments? Voyager Can Help
Voyager, the company behind VGX, has developed an intriguing business model. Like other exchanges such as Celsius offering yields on cryptocurrency holdings, VGX has developed a model whereby the company earns enough fees via its lending activities to return high single-digit yields to investors.
I had to do some digging on this to understand exactly how it works. I mean, it’s true that banks provide near-zero interest rates on deposits, so a yield on Bitcoin (CCC:BTC-USD) of 6.25% really does seem to good to be true.
That said, Celsius explained their business model well in a blog post:
“The Celsius business model is structured to do the exact opposite of what banks do — by giving 80% of total revenue back to our community each week in the form of earned interest. We earn profits by lending coins to hedge funds, exchanges, and institutional traders, and by issuing asset-backed loans at an average of 9% interest. We’re taking the exact same 80% profit margin that banks have kept for themselves for centuries and returning it to our community of depositors.”
Okay, so how good are the yields?
Here’s a list of the yields that have been offered as of Voyager’s “March Interest Mania” event:
- USDC 9.00%
- BTC 6.25%
- ETH 5.25%
- DOT 8.00%
- ADA 5.25%
- LINK 5.50%
- LTC 6.50%
In total, the company offers interest on 24 different digital tokens. By simply holding a minimum monthly balance (with no lockups or restrictions), investors earn these yields. Voyager’s platform is zero-interest, and is focused on the retail investor. Accordingly, it’s no surprise to see some pretty impressive user growth take hold of late.
So What Does this Have to Do with VGX?
What’s intriguing about VGX is the unique utility this cryptocurrency provides investors.
VGX is a digital token, just like its peers. In many ways, it’s a high-risk, extremely-high-reward investment for those who believe these digital tokens are only just beginning their ascent to glory.
However, VGX also provides investors with a unique benefit. By holding a given number of VGX Tokens, Voyager patrons can take advantage of the Voyager yield program.
This program rewards loyal VGX holders with additional yield on their holdings. Accordingly, interest boosts of up to 1 percentage point on cryptocurrencies such as BTC are offered. There are various tiers with the loyalty program, so the more VGX one holds, the higher the yield.
That’s a pretty darn interesting idea.
Voyager and VGX are certainly intriguing from a business model perspective. The fact that cryptocurrency exchanges offer significant yield is just another one of the incredible things to explore in this nascent niche market.
Voyager’s recent foray into Europe via its acquisition of French-based LGO has also spurred investors to consider the growth upside with Voyager and VGX long-term. It appears Voyager is making a run at major cryptocurrency exchange competitors, and is positioning its offering in a unique way with its VGX token.
I like yield on my investments, so I naturally find VGX intriguing. However, from a risk tolerance perspective, VGX (and all cryptocurrencies for that matter) don’t meet my criteria.
That said, for those with some “funny money” to put to work, why not? Voyager and VGX have an intriguing business model, and one I think has the potential to continue to attract a lot of attention as crypto investors reach for yield on their investments.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.