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DigixDao (DGD): Bringing Gold to the Blockchain

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DigixDao
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The Cryptocurrency market is volatile and ever-changing, with newer cryptocurrencies being introduced almost every other day. While not all of these new projects become successful in the long term, the past two years have seen many successful projects starting to gain traction in various trading communities around the world. Hence, a world of trading opportunities exists beyond the dominance of the big three, namely Bitcoin, Ripple, and Ethereum. This brings us to DigixDAO, a Cryptocurrency with a revolutionary new idea of bridging the gap between Gold acquisition and cryptocurrencies.

DigixDao: Background Information

The term DigixDAo is short for Digix Decentralized Autonomous Organization. DigixDao (DGD) was conceptualized in early 2014, by the Digix Global Company. The team, headed by Teo Hye, Chng aimed to create a new Cryptocurrency which is backed by actual bars of Gold. The system is based on the Ethereum blockchain, with a decentralized group of participants making the decisions about how to take the Digix global system forward. Digix’s crowdsale was one of the first to be conducted on the Ethereum network. While the original period was slated to be 30 days, the Digix team raised the 5.5 Million dollar hard-cap within 12 hours of the announcement, with 1.7 million tokens being sold.

Holders of the Digix tokens have the opportunity to vote on how the DigixDAO funds are allocated. They can also active managerial decisions to any proposals submitted to the network making it a rather unique system.

Salient Features

The Digix Ecosystem focuses more on empowering the community, as mentioned earlier.  There are certain salient features which make it stand out from the other blockchain based projects with similar use-cases.

  1. Proof-of-Asset Concept: Contrary to other protocols, including Proof-of-Work, or Proof-of-Stake, Digix’s unique Proof-of-Asset allow individual DGX tokens to be backed by 1qram of gold. This protocol involves recording the possession of an asset on the Ethereum blockchain by creating Proof-of-Asset Cards. All relevant information including Custodian name, Auditor, Vendor etc. are recorded and further validated with the proof-of-purchase receipts. The physical Gold is stored at a high-security vault Called “The Safe House” in Singapore.
  2. Supply and Sustainability: According to the team, Digix’s total coin supply for DGD tokens is 2 million while the DGX token supply will depend on the demand and other factors.  Thus, the total valuation of the Gold is approximately 2 billion at the moment.
  3. Adaptation to the Market:  When it comes to competition, Digix has two main entities on the same market, with one being Gold Money. Gold-Money is undoubtedly the market leader at the moment, already holding about $2 Billion in Assets. The other competitor is Tether, which itself is a noted stable coin.

DigixDao in the News

DigixDAO’s DGD tokens had quite a successful run in the first quarter of 2018, so much so that traders considered it a good haven. However, Bitcoin’s price decline resulted in the coin’s appreciation, with Digix tokens rising by almost $500. In spite of price slumps in recent weeks, the coin is starting to stabilize from the effects of being overbought in the market.

Final Thoughts:

In a world, where the link between fiat currencies and gold is largely non-existent, the Digix team aims to bring back the so-called “Gold” standard. The success of DigixDao would result in the creation of a “Gold Dollar Cryptocurrency” providing not only stability but also opens the avenue for future tokenization of metals. Thus, by tapping into the secure environment of the blockchain, Digix hopes to create an entire ecosystem of applications. Thus, the future looks bright for Digix, which is already listed and trading on major exchanges around the world, such as Huobi, Bittrex, Binance, OKEx, Liqui, Gate.io, IDEX, etc.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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