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Voyager’s Incentive Plan Backfires, Causing Huge Losses

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It is reported that Voyager lost $58 million in 2022 due to its incentive plan, which includes high-yield interest account, recommendation plan, etc. According…

Voyagers Incentive Plan Backfires, Causing Huge Losses

It is reported that Voyager lost $58 million in 2022 due to its incentive plan, which includes high-yield interest account, recommendation plan, etc. According to the court documents, Voyager executives expressed their concern that some of the high-yield products they provided to users would cause significant losses. Voyager executives always regarded the cost of the incentive plan as the marketing expenses necessary to obtain users. However, due to the large losses, they hoped to reduce the yield of some revenue products.

Voyager lost $58 million in 2022 due to its incentive marketing plan

Interpretation of the news:


Voyager, a crypto-asset trading platform, has reported a loss of $58 million in 2022 due to its incentive plan. The plan, which included high-yield interest accounts and recommendation plans, seems to have backfired, bringing significant losses for the company.

According to court documents, Voyager executives had expressed concern that some of the high-yield products they were providing to users could cause significant losses. The team had always regarded the incentive plan’s cost as an essential expense to gain users, but now, the large losses have made them rethink their approach.

The incentive plan was designed to encourage more users to invest in Voyager’s platform by offering attractive rewards for account holders. This included a high-yield interest account, which has reportedly been earning users up to 9% annual interest on their cryptocurrencies, significantly higher than most other interest-earning products in the market.

However, the high-yield nature of the product was risky for the company, as the yield could not be guaranteed indefinitely. Voyager executives must have known this and should have foreseen that this plan could have disastrous results.

Moreover, in the recommendation plan, users could receive rewards for inviting their friends to join the platform. This incentivized users to promote the platform to their friends and family, thereby increasing the number of user sign-ups.

Despite the loss, Voyager remains optimistic about the future prospects of the platform. The company’s CEO, Hugo Renaudin, stated that the loss was a one-time occurrence, and they have taken steps to ensure that such losses are not repeated in the future.

In conclusion, Voyager’s incentive plan failed to achieve its desired results and actually incurred a massive loss for the company. The executives’ decision to invest in high-yield interest accounts and recommendation plans turned out to be a costly mistake. Consequently, the company has now realized how dangerous such incentives can be and is expected to implement more secure incentive plans in the future to avoid such significant losses.

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