What is DigixDAO?
DigixDAO is a cryptocurrency based on the blockchain technology. It tokenizes gold on the Ethereum blockchain. The platform provides a use case for the documentation of physical assets via its
Proof of Asset (PoA) protocol. The PoA protocol utilises Ethereum and the InterPlanetary
Files System (IPFS) to track an asset through its chain of custody. There are two native currencies of the DigixDAO platform -Digix Gold (DGX) and DigixDAO (DGD). Both of them have an important role in the structure of the platform. The DigixDAO platform allows users to buy gold by owning DGX, which is an ERC20 token.
Each DGX token is fixed at 1 gram of 99% LBMC-approved Gold. DGX Tokens are minted via a Minter Smart Contract. Meanwhile, the DGD tokens allow participants to receive quarterly rewards on the DGX collected via transaction fees. The number of DGD tokens is fixed at 2,000,000. In March 2016, Digix completed the first crowdsale on the Ethereum Blockchain that reached its $5.5 million target within 12 hours. The DGD crowdsale took place on 30 March 2016.
Features of DigixDAO
Proof-of-Asset Protocol (POA): DGD is based on POA. It records possession of an asset on the Ethereum blockchain and the create PoA Asset Cards. At each step of the process, proof records are published permanently with IPFS and Ethereum. The PoA protocol can be used for ownership titles, debt credits, stocks, and bonds.
Where to buy DigixDAO?
The DGD tokens are listed on Binance, Liqui, Upbit, Livecoin and others.
There is no verified source that can confirm whether DGD tokens can be mined or not.
The DGX and DGD tokens can be stored in any third party wallets that supports Ethereum tokens. They are compatible with MyEtherWallet, MyCrypto and others.
DigixDAO Price Trends
On 28 May 2018, the market capitalisation of DGD tokens was $257,254,000 while the price of 1 DGD token was $128.63. At the beginning of January 2018, the price of 1 DGD token was around $175. The coin crossed the $400 mark in February however, by the end of March 2018 it was down to $250. It soon started falling rapidly post April and has been below $200 in May.
Risks involved with investing in DigixDAO
One must have thorough knowledge of cryptocurrencies before investing in it. They are extremely volatile in nature and one cannot predict the rise and fall of the price. Moreover, they are subject to government regulations. Hence, it is advised to invest in mutual funds instead as they are more secure and reliable form of investment.
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