In the past few months, the world is experiencing a crypto-storm, the likes of which has not been seen before. Cryptocurrencies are springing up frequently, with new projects promising several types of utilities to various industries. Digix is one such token which is proud to be the “first” Decentralised Autonomous Organization or DAO and is based on Ethereum. At the time of writing (12/03/2018), Digix has a total market cap of $728,968,000 USD with a total circulating supply of 2,000,000 Tokens. This is reflective of the fact that it is currently ranked at 26th in the world.
Digix and its Connection to Gold
Since Gold is one of the first raw materials that people perceived to be valuable throughout the ages, it has gained an equal status of value when compared to other national currencies. The current Gold market worldwide is currently valued at an excess of 8 trillion.
There are certainly many similarities between Gold and cryptocurrencies in general. One of the major similarities is the presence of a total supply in both cases. Contrary to fiat money, which can be reprinted by national governments based on circumstances, the total supply of Gold in the world is fixed.
There are, however, major problems with acquiring and investing in Gold. Gold dealers can sometimes scam people with fraudulent Gold-Lookalikes. It is also a fairly bulky material, making it difficult to keep at home. DigixDao wants to bridge this gap, by allowing normal investors and the general populous to readily invest in the Gold market.
The Two Major Tokens: DGX and DGD
DigixDao has introduced both the DGX and DGD tokens exactly for this purpose. Both tokens function very differently from one another, with DGX for investing in gold, while DGD for investing in the DigixDao platform itself as well as trading with Gold.
The DGX token is the prime focus of the DigixDao platform. Each token is fixed at 1 gram of 99% LBMC-approved Gold. This Gold is then safely kept in a safe in Singapore, which can store up to 30,000 kilograms of gold. The DGX Token allows any investor to get hold of Gold, using the famed blockchain technology. Thus, it fulfills two purposes, namely
- Being a Stable Investment compared to other cryptocurrencies
- Allows Access to Gold for small-scale investors.
The DGD token is used for a dramatically different purpose. A DGD token holder gets a share of the profits that the DigixDao platform makes, which in turn comes from the platform’s transactional fees. There are currently 2 million of these DGD tokens in circulation, with holders being rewarded every quarter with DGX tokens.
DigixDao has a big advantage in being the primary player on the market, a so-called “first mover advantage”. The crypto market is crying for a stable token that can actually show that it is supported by an underlying value or asset. Hence the future prospects of DigixDao are looking bright.
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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. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Bullion Vault via Flickr