The Stablecoin has an innovative concept that marries blockchain to the renowned stability of gold. Its cryptocurrency the Digix (DGX) has its value allotted against one gram of real gold. The DGX can be seen listed on Tokyocrypto as a fully gold backed token.
Digix Global is a small cryptocurrency enterprise that operates out of Singapore. The company would have to redeem tokens against real physical bars of gold to actually store in vaults. While this means that the value of DGX won’t swing back and forth like a pendulum, users will still have to be physically present to activate the redemption process because of security issues.
Current international shipment costs to transport gold also impede the redemption process.
The Tracking Process
The cofounder of Digix, Kai C. Chang said that the company has developed an intuitive process to track all its assets in physical gold on the exchange. In an interview to a leading news outlet, Kari explained that every gold bar is first scanned into their system and its receipt is stored later. The gold bar is then linked to a unique token during sales transactions. This means that when a person holds DGX tokens, they are effectively becoming owners of gold certificates.
Digix brings cutting edge cryptocurrency technologies and combines it with the arguably the most resilient assets of all time, gold. It is true that gold remains unfazed by economic turmoil, the downsides to it are high premiums that must be paid to purchase it outright.
Kai also said that while the minimum redemption need is a little high, the tokens can be used to play a pivotal role in the trades market. Digix also has a Demurrage fee, the concept of which can be compared to insurance. This fee is coded inside the certificate of every gold bar.
The exchange is presently listing all its wares in a transparent process, with the DGX token being listed across many popular and influential exchanges such as Ethfinex. While exchanges are popular with people, the majority of DGX trades occur on decentralized markets.
Until recently the company only had 1400 grams in gold assets, but Kai has said that the exchange would obtain an additional 5000 units from the London Bullion Market Association, which is listed as the official supplier of the exchange.
In order to incentivize users to buy more DGX, Digix regularly features sales and discounts so interested people can try the feature and see if it works for them. DGX is currently being sold with the same price as gold in order for the company to break even. Another sale is scheduled to take place at the end of December to incentivize more users to purchase DGX.
The burgeoning but largely volatile cryptocurrency market will now have a new digital currency which will not be subject to the same unpredictability as bitcoin is currently known for. DGX can currently be traded directly for cryptocurrency and fiat in popular exchanges.