Digitex Futures Leading the Way in Sustainable Project Financing
Like many blockchain companies, 2019 didnt start well for Digitex Futures. In January, the commission-free, non-custodial futures exchange postponed its beta launch to pool its resources for a robust public delivery in early Q2. Added to that, the general market conditions remained relentlessly bearish. Yet it was at this time that the company revealed another ambitious plan. The launch of the Digitex Treasury.
What Is the Digitex Treasury?
So, what exactly is the Digitex Treasury and why the need for one? Digitex Futures held an extremely successful ICO in January 2018. It sold out in just 17 minutes. However, while the rise of $5.2 million was exactly what the company was looking for at the time, its goals are continuously evolving, mirroring an evolving industry.
And with ambitious plans of taking on top exchanges like BitMEX and OKEx (Digitex will introduce commission-free spot trading later this year), the company realized that if it wanted to reach its lofty goals, it would need more funding into the future.
With more than one million people signed up to its public launch waitlist, theres a clear demand for the project. And no lack of large investors willing to scoop up whale-sized amounts of DGTX, the exchanges native token. However, having seen the power that whales can have over projects, the team didnt want their operations to be at the mercy of a few influential investors.
The Digitex Treasury wasnt something that the company dreamed up on a whim. After careful thought and consideration, CEO Adam Todd introduced a new revenue source to cover the costs of the zero-fee exchange operations. A transparent, fair, and sustainable way forward to finance their plans.
Therefore, they decided to take the bold move of locking away 10% of their initial supply of DGTX into a smart contract called the Digitex Treasury. 100 million DGTX is now out of the reach of the company and 10 million DGTX will be made available every quarter for public sale over the next two and a half years.
A Novel Concept in Fundraising Took Time to Be Accepted
The Digitex Treasury allows buyers to purchase DGTX directly from the exchange, but at a slight premium. The price will always be higher than the market price so as not to damage token holders, cause dumping on exchanges or undercut them.
Not everyone will want to purchase tokens at a premium. But for those investors who want an instant, trustless transaction without the hassle of going through an exchange (and at the same time, supporting the ongoing goals of the project), the Treasury is a win-win.
When it came to the Treasury announcement in January, however, it seems as if not everyone understood the effect it would have on the project and its price. Perhaps thats only natural when you consider that its a novel concept that has never been applied before.
The Digitex Treasury raised a lot of questions. For example, if the exchange was setting a price at a premium, how did it expect to sell? Would people really buy when they could get the exchange tokens cheaper on HitBTC and Mercatox?
It turns out that the answer is a resou ...Read full story on CryptoSlate