“Gold might not be innovative technology like most cryptos are, but it’s the most efficient store of value the world has ever known. DigixDao offers two tokens, DGX and DGD, and each one has its job and use case….”
Coin Name: Digix
Token: DGD / DGX
Birth of project: 2016
Project Status: Pending
Circulating Supply: 2,000,000 DGD
Official website: https://digix.global/
Introduction to DigixDAO (DGD|DGX)
Gold exists for a long time, and there are lots of ways of buying it. Given this, it’s easy to lose money with fees and gold selling scams. Also, the safe gold vaults only sell above a certain value or with a certain fee, making unprofitable for the average guy to buy gold.
Buying gold is a matter of trust, and the purpose of DigixDAO is precisely the creation of a Gold Token (DGX) based on the Ethereum smart contracts blockchain.
Gold might not be innovative technology like most cryptos are, but it’s the most efficient store of value the world has ever known. DigixDao has also the DGD token, and each one has its job and use case, but let’s start with DGX.
The value of DGX is the stability of being associated with 1 gram of gold, LBMA (London Bullion Market, the competent authority for the world’s bullion market) approved. Stability matters a lot in the sense the crypto market is highly volatile so, in those frequent red days, trading to DGX can be a good choice.
DigixDAO created the DGX token that enforces the gold ownership. We buy one DGX, we own 1 gram of gold stored in a Singapore vault, as simple as it gets. The gold is allocated to the owner of the token, no third parties involved, so it’s a strong use case of making something like gold transactions benefiting from the blockchain.
DGX presents itself as the most stable token ever, a good place to park our value in a bear market, but also an easy and safe way to buy gold, no fees involved. Needless to say, the market for DGX is massive. DGX has not been released yet, it’s set to happen at the end of Q1 2018, and after that 100 DGX tokens can be redeemed for 100mg of gold, delivered personally or by mail.
There are fees involved in the process of buying, selling and storing DGX, and these fees will be awarded to the DGD holders quarterly, according to the number of DGD each one holds. Basically, DGD is a participation in a Distributed Autonomous Organization (DigixDAO) giving DGD holders rewards based on the use of DGX. Pretty much like Neo gives Gas, DGD holders will get DGX, or free gold.
When the DGX is released, the demand for DGD will increase, as more investors will want to profit, so the price will eventually go higher. No technology here involved, just old-fashioned gold investment on the blockchain.
After the development made by the DigixDAO team, the release on the market of DGX will determine the level of adoption the token will have, but the constant rise of the DGD token it’s a clear sign of what will happen. Not only crypto investors will turn to gold, but also gold investors will turn to crypto, benefiting both markets.
This is a brief introduction to DigixDAO, but if you want to know more about the coin, what people are saying about it, technical details, jump right in any of the links we present below. They are well worth reading before investing!
Feb 19, 2018: $319.17
Jan 19, 2018: $180.66
Dec 19, 2017: $198.47
Nov 19, 2017: $70.26
I think the ability to buy gold from crypto currency is great. Gold is the most stable and secure investment. The gold price may not increase rapidly just like crypto currency price, however, the gold price also does not drop rapidly just like crypto currency. I have never heard of DigixDAO and DGX, I will have to check the official site and find more about this crypto currency and token.
I have seen such adverts about being able to buy gold from cryptocurrency sites. It’s such a good innovation because it makes transactions more legit and secure. Trading through popular cryptocurrency platforms would give one a peace of mind because of safety of investment.
I really like this idea. This is an amazing way to invest in crypto. However I don’t really understand some of the logistics. It seems a bit complicated. So to recap DGD are tokens whose value is related to the price of Gold stored in Singapore? I hope this interpretation is right? It’s traded between individuals? Who determines the values? How secure is your gold? In theory this is a good idea. Lets see how it will work in practice. I would be interested in investing in this.
As far as I understand, gold price determines the value of DGX because gold provides a guarantee for DGX. The concept behind DGX is really good because gold is the most stable investment. Crypto prices seem to fluctuate every now and then, however, by associating the crypto currency with gold, the value will be some what controlled. London Bullion Market is world’s authority market for gold and DGX determines the value through the gold price as stated by LOndon Bullion Market.
Yep, pretty much well explained right here @vinaya. DGX is the so called stable coin because it’s backed by a physical asset, in this case, gold. The gold is secure in a vault in Singapore, according to the Digix team.
DGD token represents the governance for DGX.
@jaymish, once we have DGD and DGX sure, we trade them on an exchange, knowing what represents.
It’s a good prospect to take up the opportunity to invest in gold through cryptocurrency. I think dealing between individuals makes it more convenient for one to finalize a trade sooner than just waiting for an undisclosed person to turn up to transact with you.
DigixDAO? I haven’t heard about it, this is my first time and I’m impressed with what I have read so far about it. Gold truly have been in existence for a long time now and it still holds great value that doesn’t depreciate. If one is looking at making stable and secure investment, I would strongly recommend doing it with gold.
DigixDao has the plan to digitize other physical assets, I think silver is next.