Voyager Digital, a provider of digital currency trading services, saw its shares fall 34% on Tuesday after the company said it was limiting some of its services due to “unprecedented” market conditions.
The company’s stock was down 34% at $0.39 in mid-day trading on the Toronto Stock Exchange.
Voyager said it was suspending customer withdrawals of bitcoin, ether and other digital assets for 48 hours due to “significant withdrawal requests” and to allow its liquidity to be replenished.
The company also said that it is stopping all margin trading and short selling on its platform.
The move comes as the cryptocurrency market has been selling off over the past week, with bitcoin down more than 30% from all-time highs of nearly $65,000 it reached a week ago.
Voyager’s troubles were compounded by exposure to crypto hedge fund Three Arrows Capital (3AC) in June, when it issued a notice of default on a $650 million loan.
On Monday, the firm filed for Chapter 15 bankruptcy, before 3AC received an assignment for relief from debtors.
Voyager said it is “working diligently” with its advisors to address the 3AC situation and is taking steps to protect its interests, including reducing the fund’s exposure.
The company also retained Houlihan Loki as financial advisor to assist in the review of strategic options.
“We remain focused on executing on our strategy and providing the best possible experience for our customers,” Ehrlich said.
Voyager Token (VGX) is down almost 59% since June 1, when it was trading at $0.095. The digital asset is down nearly 88% from its all-time high in January. VGX’s collapse is not only a threat to its founders, but also a major setback for its investors.
The recent market crash has caused many investors to lose a lot of money and some even go bankrupt, which is why the company has decided to limit its services. This is to prevent any more damage from happening and try to fix whatever they can.
This affects not only Voyager, but other digital currency providers as well. Other digital currencies, including Ether and Dogecoin, have also fallen in recent days. Many have seen their shares fall significantly in the past week.
It is unclear what the future holds for Voyager and other digital currency providers. In the face of such volatility in the market, it is difficult to say how long this downturn will last or how severe it will be. However, one thing is certain: the digital currency markets are in for a bumpy ride.