DigixGlobal plans on returning over 386,000 ETH to DGD holders

Endy Callahan

DigixGlobal can return Ethereum cryptocurrency to DGD token owners. The final decision has not been made yet. Probably a lot will become clear after the last voting.

The DigixGlobal company heads the initial token placement of DigixDAO tokens. It is studying the feasibility of returning more than 386 thousand Ethereum, which exceeds $50 million at the current rate. The DGD owners are the ones who can get coins.

Attracting investment in Ethereum

In 2016, the startup managed to raise more than 460 thousand ETH (it corresponded to 5.5 million dollars according to exchange rate at the time). The main purpose was to transfer gold to the blockchain through the ecosystem. It is based on 2 coins:

  • DGD - a token for managing DigixDAO company.  It is in charge of operations with funds raised during the initial placement of coins.
  • DGX – according to the company, this token is backed by gold. It is kept by The Safe House in Singapore.

To date, DigixDAO stores over 386,000 Ethereum. Among these, 335,000 are at the moment placed on cold wallets.Only 50.8 thousand coins are kept on hot wallets.

DGD's capitalization is currently calculated at $24.6 million. In case the proportions of ETH/DGD exchange rate are kept, the project investors can fix the profit once the project storage is liquidated.

Previously, the DigixDAO holders were positive about the initiative, which involved burning coins in exchange for etheriums from the company's vault. DigixGlobal did not support this initiative because of concerns that the U.S. SEC may consider the project coins as securities. Kai-Chan, one of the company founders, said he would prefer the complete destruction of DigixDAO vault, alongside with closure of its activities.

Now the founders of Digix intend to vote on this issue. It is expected to last about a month. Mr. Chan noted that the project team owns at least 8% of DGD coins. In case more than 60% of investors vote for the depository closure, a positive decision will be made and assets will be released to promote other projects.

Within 14 hours of the crowdsale, Digix digital gold assets platform raised $5.5 million

Digix organized "the first decentralized public token sale event based on Ethereum blockchain ". It took just a few hours to raise over $5.5 million investments. The company sold 2 million DGD coins, which were exchanged for half a million Ether coins. You may learn a lot about this cryptocurrency features in "What is Ethereum" article. It is planned tospend the raised funds on forming a decentralized autonomous organization that will be using the proof-of-asset (PoA) protocol. The development will support DGX tokens through 99.99% sample gold. The metal of the London Association of Precious Metals Market Participants will be involved for this purpose.

DGX token corresponds to 1 gram of gold and can be divided into one thousandth grams. "Minter Smart Contract" based on Ethereum smart contracts is used to create them. The issue of DGX Tokens involves forming an asset-map. It will be uploaded to Ethereum blockchain. It will contain the following data: gold bar serial number, data creation time, audit documents and receipt. The asset-map provides full verification and transparency.  With its help, the owner could exchange DGX tokens for physical gold any time.

Each owner of DigixDAO coin gets the right to participate in voting on distribution or decision making on further fundraising, general strategy and DAO development direction. If the person has spent more than 15 thousand dollars on tokens during the sale, he gets the power of veto, as well as the right to make offers for consideration.

Digix company announced the platform development back in the beginning of 2016. It created the PoA protocol, which uses an interplanetary file system and Ethereum blockchain to track assets through the security chain. As a result, there is no need to use centralized database to verify the assets existence.

What you need to know about DGX tokens backed by real gold

The company has been developing tokens for more than two years. The first initial coin placement was carried out on Ethereum. It has officially completed the cycle from the project start date till its implementation.

The ICO resulted in 5.5 million dollars investments raise. DAO DGD token was launched right after its completion. Its owners are entitled to receive transaction fees in the gold-backed ecosystem.

To back the coin by gold in future, the company will use a special system with 3 additional participating parties. This was mentioned in their White Paper. These are the three additional parties:

  • Bureau Veritas Inspectorate - every year it audits the gold stored in the gold depository.
  • ValueMax Singapore - supplier of gold, which is placed on the exchange.
  • MalcaAmit - organizer of the physical storage.

The project, which was established in 2016, was the second one to implement a cryptocurrency with stable value tied to a physical asset.

In 2018, during the initial token placement, startups sold 2.7 million Etereum 

In the four months of 2018, projects related to the initial token placement sold over 730,000 ETH coins. Within just a few weeks, 400,000 coins were sold.

According to experts, Ethereum reserves stored in ICO projects have significantly decreased. In summer, the total amount of cryptocurrency in their accounts was about 3.3 million coins. At the moment, the figure has fallen to 2.7 million coins.

ICO projects tend to sell off Ethereum. This is one of the reasons why the exchange rate of №2 cryptocurrency  on capitalization has been declining recently. A number of analysts recommend starting the purchase, and gradually increasing it as the coin rate decreases.