In order to understand the Digitex Futures Token (DGTX), we must learn about the Digitex Futures exchange.
Digitex Futures has been one of the most controversial crypto exchanges. Much of this comes from the fact that the public launch was delayed several times. The reasons given weren’t fully accepted by the crypto community. Let’s take a look at Digitex Futures’ history.
Digitex Futures started its ICO in Q1 2018 and successfully raised over $5 million due to the popularity of ICOs at that time.
They sold each DGTX token for $0.01 USD and it’s currently trading at ~$0.04095. The success of DGTX token was inevitable considering the hype and media attention that Digitex futures got for a while, even until the beginning of 2019.
Digitex Futures As A Zero-Fee Crypto Futures Exchange
The Digitex Futures exchange is zero-fee. They can do this because DGTX acts as the base currency on the exchange. All balances are kept in DGTX and all trades are executed with DGTX. This creates a demand for DGTX, increasing the price. They, in turn, sell tokens from the Digitex Treasury.
Trading on the platform is only achievable once the traders buy DGTX tokens. The Digitex Treasury smart contract will release a small amount of DGTX tokens every three months. These tokens are sold to fund exchange operations.
Unlike Bitmex and many other exchanges that offer futures trading, Digitex is non-custodial. Digitex offers a “centralized, sophisticated order book” and non-custodial balances held on a smart contract.
The idea looks great on paper, and that’s why DGTX token enjoyed huge price jumps several times in the past year. At one point, DGTX was among the top 90 crypto assets by market cap.
You can buy tokens from an exchange like Mercatox or Switchain. Users can also buy tokens via the Digitex Treasury.
There are three phases of revenue generation for the Digitex Futures exchange.
The first was the token sale on 15 January 2018 which raised over $5m. The “Whale Sale” took place in February, raising another $2 million.
The second and current phase is the Digitex Treasury token sale which will last until the end of 2021. This is an ongoing sale that allows users to purchase tokens from Digitex for a small market premium. Buying from the Treasury is instant, there’s no price slippage. KYC is required. Digitex claims the treasury will never sell a token for less than $0.05.
The third phase is Digitex Token Issuance, which starts in 2022. Token holders will be able to vote on the amount of tokens minted each month.
1 billion tokens were created when the project was launched.
65% of the tokens were sold during the ICO.
10% of the tokens were allocated to “Digitex Market Makers”. This would include trading bots to provide liquidity on the exchange, i.e. creating bid/offer orders with algorithmic trading.
10% was give the Digitex Treasury.
10% was given to the team to fund development (for 3 years).
5% was allocated for Bounty and Loyalty programs.
The Inevitable Delays And The Problem With The Trading Engine
Digitex Futures’ launch dates were delayed several times.The testnet finally launched on November 30th, 2019.
Previously, Spotware (the creator of cTrader) was tasked to develop Digitex trading engine, but the relationship between the two companies (Spotware and Digitex) quickly went south when Digitex Futures CEO Adam Todd blamed Spotware for the delays. Spotware made a public statement blaming Adam Todd as a person who “didn’t know what he was doing”.
The result of this relationship fallout caused significant delays for Digitex’s launch dates. Digitex hired SmartDec, replacing Spotware to build their trading engine.
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