Yesterday, two years after its crowdsale, Digix Global deployed the ERC20 gold token, DGX, on the blockchain. There are currently 1400 DGX tokens on the Ethereum blockchain. Each represents one gram of gold, 100% backed by physical gold held in Singapore.

The Digix crowdsale took place in March 2016-two years ago. It was the first on chain crowdsale for Ethereum, and was greatly anticipated. A few weeks prior, Digix Global announced they would capped the sale at $5.5 million. It was the first of many decisions that cemented my trust in Digix Global as a group of long term visionaries, more interested in developing a solid product than making a quick buck and carelessly rushing to market. Their ICO stands with few others in demonstrating the highest level of integrity.

Would that more ICOs learned a few lessons from Digix.

It is happening, Dr Paul!

With the $5.5 million cap, the crowdsale sold out in only 12 hours. I had family in town that day, but ran upstairs and used my Ethereum wallet application to secure my place in history.

About a month later, I received my DGD tokens. The ability to crowdfund a project had been proven on the Ethereum blockchain.

Shortly thereafter, the DAO went live and everyone went nuts. Many people were salty having missed the DGD crowdsale and jumped in recklessly.

We all know how the DAO turned out, as it collected over $100 million and was then hacked. The Digix team used this as a learning opportunity to slow down their coding and more carefully develop their product. We all learned the value of patience when ETH declined in price slowly over about 7 or 8 months, and only a handful of projects had crowdsales: Plutus, SingularDTV, Golem.

Digix Global continued to make steady progress.

Things to Know About Digix

The Digix Discord group is a great place to meet fellow fans of the project, many of whom are still there today. This is a community of enthusiasts, interested in making Digix a premier name in blockchain, interested in making money, and generally friendly people. There are some great ideas floating around here, and one that made it to the surface this past year was…

The ETC refund. In 2017, Digix listened to the voices in the Digix Slack and allowed DGD holders to collect the ETC held in the crowdsale fund. DGD holders received about .25 ETC for every DGD they held. This event showed that Digix Global is a consistent strong performer capable of executing smart contracts safely.

The crowdfund has not been touched, and with 466k ETH is one of the biggest single deposits of Ether. DGD holders will vote on how to deploy these funds to best expand Digix, and they will receive rewards based on the use of DGX gold tokens.

Finally, the Digix team has worked patiently and tirelessly to ensure the highest conformance to securities laws. Digix Global, as well as the physical gold, is located in Singapore. DGX gold holders who wish to take physical possession of their gold must go through KYC/AML processes. Anyone who wishes to trade DGX gold on the Ethereum blockchain, however, may do so freely.

Future

The future of DGD is exciting. After the DGX launch is completed, and gold is being bought and traded on the blockchain, Digix Global will focus on setting up DGD governance. Beyond that, when DGD holders can vote, they will begin voting how best to use the 466k ETH warchest that has been collected. DGX Silver, Platinum, Copper, and more are obvious next steps, which can likely be coded similarly to the Gold.

In case it isn’t clear: DGX gold tokens are each backed by one gram of gold, with the highest auditing standards in the blockchain world. This is the closest to having gold as money that we’ve had in 100 years. I’ll write more on that soon.

Disclaimer: I own DGD tokens. This article is for informational purposes, not investment advice. 

-Jeff

Check out my book for more information on cryptocurrency trading. Free for Amazon Unlimited readers!