Back in March of 2016, DigixDAO launched a crowdfunding campaign based on Ethereum. At first, they planned for the campaign to run for 30 days but they hit their cap in just 12 hours! In fact, they surpassed it by ten-fold! What was once a goal of $500,000 had ended up becoming a successful launch worth $5.5 million!
DigixDAO used a smart contracts platform in order to automate the process so that it could return all money to investors in the event that the funding goal was not met. That might explain why it was such a huge success. There was very little risk to investors.
The overall vision of DigixDAO is to create gold tokens in digital format. Those digital tokens could be “minted” by purchasing a physical gold bar. When DGX sends a blockchain user sends DGX to another, transaction fees are able to be collected as a reward by DGD holders.
In short, people who would buy gold from one of three specific exchanges would also receive a small amount of DGX. The idea is quite innovative so it’s no surprise that the crowdfunding campaign was so successful. It was also the first Ethereum Blockchain to ever host a crowdfunding campaign.
Now that you have a little bit of background information, we can dive deeper into the specifics of what sets this cryptocurrency apart from the rest. Should you invest in DGX? What makes DGX a better choice than other cryptocurrencies?
Why DigixDAO Has Been a Huge Success
Experts all agree that it’s next to impossible to predict how crowdfunding campaigns will perform. This is especially true if it’s the first time. Even so, we can look back at DigixDAO’s campaign to learn some of the things they got right.
I would say that the top reason for such a huge success was that everyone knew that the future of Ethereum was bright and this was the first crowdfunding campaign for an Etherium based product. Therefore, everyone wanted to be a part of it!
Digix has created what will surely become the next generation of blockchain technology. The smart contracts technology is innovative and easy to deploy.
Smart contract technology has had huge implications on the market. That technology is what led to such huge success. I only mention this because that technology is going to be why you decide to invest in DigixDAO.
Remember, Digix’s vision was to create gold tokens in digital format. In order to see that vision become reality, Ethereum needed a unit of exchange. That’s why they created DGX. Since it’s linked to gold, it’s relatively less volatile than other forms of cryptocurrency. That gives it high appeal.
Furthermore, you can use DGX to pay for certain purchases using NCF tap since it’s in the Ethereum EIP20 format. Simply put, it can be used in future Ethereum contracts.
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The Advantages of DigixDAO
So we know that DGX earned $5.5 million in just 12 hours. This provided instant value to all investors and is being used as an investment in peripherals that are designed to boost the adoption of DGX. With that in mind, here are some of the obvious benefits that DGX has over other cryptocurrencies.
DGX holders have a lot more stability than other cryptocurrency holders because they can actually cash it in for real gold. What makes this so amazing is that you no longer have to store gold in vaults. You can turn it into digital tokens that can later be redeemed into gold should you feel the need arise. Right now, the cryptographic locks that secure the blockchain are not able to be cracked. As with all cryptocurrency, security is always a risk.
Each DGX token represents 1 gram of gold, with a transaction fee of 0.13%. As I mentioned, these tokens can be used to redeem gold via Digix’s website. That’s what provides it more stability and a brighter future.
The bottom line is that while the world of cryptocurrency is in a constant state of flux, we know that gold will always have value. So by anchoring DGX to gold, Digix is able to provide it a certain amount of stability.
If you are interested in investing in gold but don’t want the hassle of having to store it physically, then DGX is a great alternative. Even if you’re not really interested in gold now, DGX’s Ethereum roots still makes it a sound investment.
Thanks for reading!
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