The Digix DAO (DGD) organization finally set a date for the long-awaited gold-backed token. For months, the DGD market price has received a boost from Binance trading, for some reason getting bought up as a hedge against BTC fluctuation.
However, just as the news were rolling in, DGD slid by more than 7% overnight, down to $316.83. At one point, DGD traded easily above $500. In the past three months, during the altcoin bear market, DGD is one of the few assets continuously climbing against BTC, as well as in dollar terms. But now, the trend is in question, and DGD will have to find a direction once the DGX token hype dies down. Lowering trading volumes point to a potentially lower price. At the same time, further weakness in BTC prices may give DGD another boost.
The creation of the DGX gold-backed token has already happened on the Ethereum main net. At the moment, a secondary marketplace is open for the token launch, as the purchase would require a KYC verification process. Purchasing the DGX gold-backed token would be open from April 8. Some limitations are applying, due to new local regulations:
“Due to the regulatory climates in the US, China and Japan, we are unable to make DGX available for users of these citizenships at this point in time,” wrote the organization in a recent blog.
Retail users would be limited to purchasing 10 DGX tokens per day, backed by 10 grams of gold. After the recent spike in gold prices related to an escalating trade war between the USA and China, the price of 10 grams of gold is around $430. Owners of the old version of DGX tokens would have them swapped after April 8 as well. Users are advised not to move their DGX-1 tokens until that date.
The DGX token is instrumental to an upcoming DAI stablecoin, which has no set date yet. However, owning DGD tokens does not entitle users to DGX tokens, just to voting on consensus matters, as is the intended role of the Distributed Autonomous Organization.
The Digix organization is one of the oldest ETH-based ICOs. Curiously, the funds raised, 465,134 ETH, have a market capitalization of around $233 million, while the market cap of the DGD digital asset is more than $633 million even at today’s lower prices. The value of tokens at ICO prices was around $5.5 million.
This article appeared first on Cryptovest
