DigixDAO (DGD) – Cryptocurrencies have seen it all so far. The rise of Bitcoin last year from $1,000 traded in January to a whopping $20,000 in December the same year. Furthermore, the cryptocurrencies shed off more than half of the value they were in December 2017 during the first quarter of 2018. Although the downward trend was general across the entire market, it is easy for an investor to realize that some digital assets decreased far more than the others. The current cryptocurrency investor is well aware of the fact that the prices can come tumbling down. However, this does not mean that investment in cryptocurrencies should cease because they are a great investment when carried out in a proper manner without haste. That having been said let us dig into DigixDAO (DGD).
What is DigixDAO (DGD)?
It simply is a digital platform that has been designed to assist customers in buying gold. And this translates to mean that if the number of DigixDAO remains the same, therefore the value of every token stays fixed to the value of gold. In other words, it is a cryptocurrency that has been developed on the gold standard. The gold standard is no longer in use and especially when it comes to the traditional national currencies.
DAO, on the other hand, is referred to in full as Distributed Autonomous Organization. It is a digital platform that supports digital asset trading. It is being marketed as a revolutionary method of trading on the internet. Significantly, it is lines of programming that coordinate to ensure that cryptocurrency trades stay within the confines of financial authority rules. The rules and the records are now stored on blockchain to ensure that they remain secure. It is vital to have knowledge of what a blockchain is if you happen not to know – a blockchain is essentially a digital accounts ledger that is encrypted securely. In the case of DAO, the blockchain contains the entire regulations and rules of trades for trading specific cryptocurrencies.
DigixDAO is based in Singapore, besides they are known for having the best security for all their commodities. Moreover, because the platform is decentralized, it does not require the input of a middleman.
DigixDAO (DGD) produces two different types of tokens. The DGX – also known as the Digix Gold Tokens and the DGD –Digix DAO Tokens. The DGD tokens are hosted to enable free trading, and they can be exchanged for the DGX tokens, although this happens after the fees have been deducted. Importantly, both tokens are required for the investor to make the most out the platform. Currently, 2 million DGD tokens are in circulation, besides, all these tokens get their value from the prevailing price of gold on the day the trade is carried out.
It is essential for an investor to understand the platform prior to making an investment. This is because the double token system can be quite confusing to many. However, on the contrary, DigixDAO provides a platform for the investor interested in trading in the precious metal (gold) without worrying about the various aspects and drawbacks that come with it. For instance, gold is heavy and requires secure storage. In addition, middlemen cause the prices to go even higher while the same gold will attract high fees to have it insured. DigixDAO (DGD), on the other hand, says that it is able to keep gold trading prices low and therefore, they present a very viable option for trading gold.