So many things have happened since we started LGO in the summer of 2017!
In February 2018, we ran one of the first French ICO and the largest to date, by raising 3600 BTC from more than 8,000 tokenholders. One year later, we were the first European company that did an ICO to be audited by a Big Four audit firm, PwC. In a bit less than two years of operations, our institutional cryptocurrency exchange grew to become the leader in Europe, with more than $1.2bn of trading volume and more than 60 institutional clients from 20 different countries. We took the time and effort to build the European ecosystem and educate the powers that be on digital assets by co-founding ADAN, the leading digital asset lobby in Europe. We were acknowledged as one of the most promising French companies by being selected in the FrenchTech120 at the beginning of 2020. And finally, we were one of the first three companies to be registered with the AMF as Virtual Asset Service Provider (PSAN, for the french readers).
In our position of leading Bitcoin exchange for institutions in Europe, and after 3 years interacting with the market, we realized that we needed to make an impactful decision to grow the company - and increase the value that we generate for our tokenholders.
With the recent rise of cryptocurrency futures and derivatives, we witnessed the increase of interest of institutional clients towards complex products, offering exposure to cryptocurrencies in a more sophisticated fashion than spot trading. As an institutional spot exchange, we were faced with a decisive decision to make. Either develop our infrastructure to offer more complex financial products to our institutional customers, or use our current infrastructure for a new category of users: retail investors. We chose the option that we think will create the most value for our tokenholders: pivoting our offering to retail cryptocurrency traders by merging with a new partner, Voyager.
Voyager is one of the fastest growing companies in the cryptocurrency space. They’ve been funded by long term capital markets and technology veterans Steve Ehrlich (former VP Brokerage at E*TRADE), Gaspard de Dreuzy (Co-Founder Kapitall and Trade.it), Oscar Salazar (an Uber co-founder) and Philip Eytan. They operate the fastest growing retail agency broker in the US, where they are regulated. They are listed on the Canadian stock exchange (CSE:VYGR). And importantly, they have a token (VGX, listed on Binance) and know how to create value for their tokenholders.
We saw a real fit between our two companies. Both LGO and Voyager share the same ambition of building industry leaders by providing a secure premium infrastructure, compliant with local regulations. Our assets and footprints are complementary, and this operation is timely for both companies. Voyager will help LGO pivot to a retail offering. With our European infrastructure, we will help develop Voyager’s business in Europe, under the Voyager brand. Together, we will build one of the most important players in the digital asset ecosystem, globally.
By merging with Voyager, we’re not only joining forces to build the leading cryptocurrency broker in Europe and in the US. We’re also - and most importantly - merging our respective tokens ($LGO and $VGX) and our tokenholder communities. This is an industry first. The new merged token, $VYGR, will be used at the core of the Voyager app and will show new features and utility to holders and Voyager app users. The holder ownership percentages will be commensurate with the existing fully diluted market caps of the tokens.
In addition, $VYGR holders will benefit from the following features:
- Inflation rate of initially 7% paid to $VYGR holders staking their token with the $VYGR staking smart contract
- Cashback rewards on the Voyager app on trading volumes based on $VYGR holdings
- Voting rights on the $VYGR inflation rate
- Other utility such as debit card benefits, interest boosters, reduction of withdrawal fees, and more, all on a global basis
More details will be provided in the near future. The $VYGR issuance and the token swap will occur before the end of 2020.
To focus on the change of business model and the merger operations, LGO will stop operating dedicated institutional exchange on Oct 30, 2020 and transfer its assets to Voyager by the end of 2020. LGO’s clients and relationships will be transferred to Voyager, who has recently announced the launch of their institutional account offering. All activities will be conducted under the Voyager brand. Steve Ehrlich will be the CEO of the whole structure, and Hugo and Fred will step down from their positions of CEO and Chairman to assist Voyager in an advisory capacity.
To everyone involved in the LGO adventure - clients, partners and most importantly our tokenholders - thank you. It was a wild ride! At the core of the LGO project and our values, we wanted to help the market be more transparent and robust. We have shipped a product which has been live with no hack or no significant interruption since then. We’re extremely proud to have found a partner in Voyager with whom we’ll be able to build a market leader, for the benefit of our tokenholders.
As a further incentive for $LGO tokenholders to swap their $LGO for $VYGR, the company's current reserve of 30m $LGO tokens will be swapped to $VYGR and distributed as a reward to tokenholders. To be eligible to the rewards, you have to:
- Swap your $LGO tokens for $VYGR tokens
- Hold the same $VYGR balance in your wallet until 3 months after the launch of the token swap contract
$VYGR tokens will be distributed at the prorata of balances of $VYGR to tokenholders that have swapped their $LGO tokens and have held all their $VYGR tokens 3 months after the launch of the token swap contract.
We will be in touch in the next few weeks with details on the token swap and how to get $VYGR tokens. In the meantime, you can follow Voyager on Twitter, Reddit and Telegram to read the latest news on the merger.
Fred, Hugo and the LGO Team