The first ever Ethereum-issued ICO, DigixDAO (DGD) has so far had a stellar 2018, even amidst all the price bloodbath faced in the crypto arena following a sharp fall of Bitcoin’s price form an all-time high of $20,000 to lows of $6,000 in early this February. DGD has produced greater returns every single day of 2018 than Bitcoin has. Digix Global, DGD parent company, aims at decentralizing the current gold market by creating a transferrable, tradable and stable coin on the Ethereum smart contracts. The company’s website states that for each of these DGD tokens, a total of 2,000,000 DGD, a gram of London Bullion Market Association (LBMA) gold bullion will be physically stored in a vault in Singapore.
“The card can then be minted, which is the production of a new DGX token, or redeemed for the physical gold bar. The gold bar can then be collected at their offices or mailed to you through a trusted mailing service.”
Digix has so far managed to compete favorably against its stable currency rival, Tether (USDT) which currently ranks 17th according to coinmarketcap.com. DigixDao (DGD) came into the market a year later and currently ranks 34th with its market cap hitting a high of $ 819,154, 000 in February when the crypto market was still struggling from a plunge. Non-blockchain digital gold storage players such as GoldMoney, Canadian based will soon feel the impact of blockchain’s presence in their line of business. The company had revenue of $ 524 million in 2017 and a significantly lower market cap than that of DigixDao of $ 254 million.
Demand your gold
The network uses the proof of Assets (PoA) to track an asset through its chain of ownership. This needs to be explained in the simplest terms for easy understanding to those with little information on the subject. Once you own the digital asset, for instance DGX tokens, they are recast and registered on the Gold Asset Card. The card can then be minted, which is the production of a new DGX token, or redeemed for the physical gold bar. The gold bar can then be collected at their offices or mailed to you through a trusted mailing service.
DGD Vs DGX
It is crucial to understand that these are two different coins offered by Digix Global. DGD represents the shares of the company and whales and holders of the coin are rewarded by a percentage of the transaction fees and storage fees collected on the platform. Traders within the DGD platform stand to benefit from this cryptocurrency since it is uncorrelated to Bitcoin & Ethereum which are quite volatile. The network has friendly charges of less than 0.15% for transacting or storing gold as asset in the network. DigitalAssetDB ranks the coin in the low standard deviation category with an average deviation of 9.51%; this is one of the factors that are set to lure investors.
Digital Gold Token (DGX) will soon be released as the first digital token on the Digix platform. The owning oneDigixDAO (DGD) token is equivalent to owning an actual gram of gold. The token will allow peer-to-peer transactions that are transparent on the blockchain and will offer a stable gold backed currency. The trading is available to anyone with a smartphone and an internet connection making gold trading decentralized and accessible to all.