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In A Rare Event, Two Cryptocurrencies Are Set To Merge

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In A Rare Event, Two Cryptocurrencies Are Set To Merge

Two cryptocurrencies are set to merge after Voyager Digital Ltd (OTC: VYGVF), a licensed digital asset broker, said on Thursday it is combining its European operations with LGO SAS.

What Happened: The two tokens  — VGX and LGO — will be merged post the deal and a new version of the Voyager (VGX) token would be minted.

“The holder ownership percentages will commensurate with the existing fully diluted market caps of the tokens. The new token will include decentralized finance features such as community governance,” Voyager said in a statement.

The token swap is expected to occur before the end of the year.

Voyager CEO Steve Ehrlich told CoinDesk that the two companies merging is "really taking the old-school mergers and acquisitions to the token world, which hasn’t been done before."

Why It Matters: The newly minted token will feature decentralized finance (DeFi) functionalities, such as community governance and staking at an initial interest rate of 7%, Voyager said.

Post-merger, Voyager will assume direct control of the France-based LGO, which — according to the former — will help deliver core services to its European customers.

The transaction is subject to regulatory approval and is expected to be completed before the end of the year.

At the closing of the deal, Voyager will issue one million shares to LGO shareholders, as per Voyager. 

In February, Voyager acquired Circle Invest, the retail digital asset business of Circle Internet Financial, Inc. 

Price Action: Voyager OTC shares closed 2% higher at $0.51 on Wednesday.

 

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