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Not many knew much about DigixDAO (DGD) prior to February 2018. Not many expected the coin to appreciate when the likes of Bitcoin and Ethereum were going through price drops.  Bitcoin and Ethereum went down by 20% and 15% respectively on February 2nd while DGD gained by over 50%. It is important to understand what makes the coin tick before putting your stakes on it.

Many Altcoins today only use the blockchain algorithms as a value addition to their tokens.  DigixDAO has chosen a unique and different route; its value is based gold and that partly explains why it is doing better where others previously flopped.

DigixDAO (DGD) and the Gold Link

One reason why DigixDAO is holding strong is that it uses the Ethereum platform in gold tokenization. Bitcoin on the other hand is a value store. There are two different aspects of Digix ecosystem; DigixDAO (DGD) and GigixGold (DGX) tokens. These two work together when it comes to platform transactions. The movement of DGD volume and price determines the interest arising from DGX which is solely driven by gold price.

Since not many people are able to buy gold to the risks and complexity of the market, the platform helps them own gold grams that are stored in a Singaporean gold vault. The core purpose of the DGD is to supplement GDX and help the user access gold by using a platform that rides on Ethereum smart contract technology.

The current stability on the DGD s based on its TGE that was able to raise over $5million. This gave the coin stability attributes. It is no wonder it survived the slip experienced by digital currencies of repute.  This immunity has positively contributed to increased confidence from stakeholders hence the stability of the coin price in recent weeks.

As a DGD holder in the platform, you claim you earn coins depending on the number of transactions processed quarterly. This is simply what the platform gets in terms of transaction fees. Given that there are only 2,000,000 tokens in existence, the DGD value is dictated by the existing market forces.

DigixDAO (DGD) Performance

The growth of DGD is determined by the speculative nature of gold in the market and this is not about to change in 2018.  The coin has enjoyed steady growth from January 2018 saw the DGD price rise to $491 in February 2nd.  The market capitalization stood slightly above $900 million on February 3rd. At the time of writing, the DGD coin is trading at $306.13 after growing 26.25% in the last 24 hours.

With the current trends, DGD is one of the best coins that you can rely on you want to make informed investment decisions. This means t is rivaling with ETH on the price front. Globally, the coins is ranked 37th while ETH is at the second place.

Interestingly, there is no rivalry between DigixDAO ecosystem and Ethereum platform. Their partnership dates back to the former ICO which the later made to be a success. Ethereum promoted the once small coin. The DigixDAO crowd sale enjoyed Ethereum’s’ good will of a creating an economy –based platform for DGD to thrive. This has made the coin stable and able to withstand unanticipated market shifts.

DigixDAO Investor Expectation for 2018

Going by the current trends, the gold market will have a major role to play in shaping the direction DGD takes. Interestingly, DGD supports gold investment just like a parallel crowd sale and investors joining both the DigixDAO and Ethereum blockchains will have a big role in breaking or making the DGD growth.

Going by the market crash earlier in the year, it means there is no single coin enjoying market immunity. You cannot project when the price of a coin will increase or decrease. The 24 hour volume shifts are just guides to help the investor grasp the market dynamics and cannot help determine when to sell off or buy.

However, based on the fact that gold has a natural stable value, chances are the coin will perform well in the coming month to close the year on a high. DigixDAO (DGD) has always been billed as a value based coin and is poised to become more valuable where other cryptocurrencies and Altcoins have not been able to break even.

 


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This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.
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