Based on monthly reports, Voyager Digital (VYGVF) could outperform Coinbase (COIN) and take major market share if it keeps up its monthly earnings revenue.
Voyager’s userbase is growing at a rapid pace, it currently boasts over 200,000 users and in the last few months alone the company has generated over $20 million and has over $2.4 billion assets under management (AUM). Voyager offers 0 fee trading and primarily makes its money on pricing inefficiencies in the crypto markets.
The brokerage plans to achieve 10% to 12% yearly returns on its $2.4 billion AUM. Despite the fact that cryptocurrency is often volatile, I am confident that digital currencies are here to stay.
On top of that, you’re able to earn 10% interest on your cryptos, this is a great incentive to switch from market leading Coinbase as Voyager pays you money and Coinbase takes money from you. Voyager, I believe, will continue to steal market share from Coinbase and other competitors, and the potential is substantial.
I believe Voyager is in a hyper growth phase, and with Coinbase’s non-existent support, Voyager could be a great alternative.
A scaling behemoth
Based on sales growth, Voyager may be the fastest growing corporation in the United States. When you’re doubling or tripling your client base every other month, you’re certain to run into some issues. As a result, a slew of fraudsters have entered the scene, attempting to steal money from Voyager and its customers.
They accomplish this by faking a deposit and withdrawing the funds that Voyager provides for rapid deposit trading. Scammers can also acquire access to an account by stealing a customer’s details or committing a sim swap attack, which Voyager counters by manually checking dubious withdrawals.
Voyager made the decision to slow down transfers and make security a top concern. This has also occurred on other platforms. My ETH and BNB withdrawals on Binance.us were recently restricted for no apparent reason. In addition, Coinbase has been the target of several assaults.
As a protection against hacked accounts, sim swap attacks, and hackers, Voyager has a $25,000 withdrawal value restriction (link here, start at 22:36). Many Voyager customers have reported being sim swapped or having their account hijacked as a result of revealing their user credentials to the wrong person, hence the $25,000 restriction safeguards larger accounts. The majority of Voyager users have over $500k.
Bottom line
Voyager is building a niche within the cryptocurrency industry making VYGVF stock a long term hold, this niche play would result in tripling its potential user base when the company expands into EU in the second half of 2023.
Another thing to note is that using a Digital Wallet gives the company enormous advantages and allows Voyager to compete against two separate trillion dollar industries which are brokerages and banks.
Over the long run, the company will be able to:
- Lower infrastructure and customer acquisition costs
- Declare better interest rates for customer deposits and financial products
- Offer services 24 hours, 7 days a week for 365 days of the year.
- Attain faster transaction settlement times
Voyager’s short term success may be tied to the crypto markets but I believe its long term success is being built on a strong business foundation making VYGVF stock one of many to consider adding to your portfolio.
