BitDegree (BDG) Platform Grows, Token Still Struggles
The BitDegree course platform has grown, but its token is struggling to become part of the ecosystem.
BitDegree (BDG) is one of those projects where a solid project does not translate into good token performance - and in fact, shows a very low need for the token itself. The BDG token has been disappointing the Initial Coin Offering (ICO) investors for months, losing more than 98% of its value. Finally, the project team itself revealed that token-only payments hampered its business, and the site has started accepting fiat, while scrambling for a way to integrate the BDG digital asset into its product.
The BitDegree project has taken up special efforts to promote the usage of its token for the purchase of online courses. At first site, BTG is a rather active platform similar to Udemy, or other niche course sites. However, the project has taken up efforts to promote the usage of its token. At the moment, the prices for courses are quoted in US dollars.
One commonly presented argument is that if a token is used within an ecosystem, it would have intrinsic value. In the case of BitDegree, there is a working economy of teachers, students, and course material - however, the token has seen unprecedented skepticism in the crypto community.
The BItDegree team made efforts in making the BDG token worthwhile, by offering course discounts:
However, the biggest problem with BDG is the difficulty of acquiring the actual digital asset, making fiat payments much more accessible. As for those who bought at ICO, few would be holding the token, and with a digital asset that has depreciated so much, not many courses could be purchased. BDG is only traded on a handful of niche exchanges, including the IDEX decentralized exchange, which is only used by a few thousand traders. The other one is HitBTC, an exchange with a bad reputation and potential withdrawal problems.
The crypto community, therefore, believes that BDG, without listings on more exchanges, is a worthless digital asset that will never see real-world usage.
In the meantime, other educational projects have managed to front-load revenues by releasing a token. One of those is Academy Token (ACAD), intended to be spent within the course ecosystem.
However, without dedicated users, payments in crypto assets are still unpopular. A recent analysis by Bloomberg showed that even Bitcoin (BTC) spending is stagnant despite the relatively less volatile prices, and for altcoins, spending is only at niche or novelty levels.
In the case of BitDegree, after the launch of token-only payments in mid-July, users complained this hampered their access.
“Our daily users voiced their concerns that they do not feel comfortable buying BitDegree courses because they do not understand cryptocurrency payments. They would gladly use alternative payment methods and they want the product, but they can’t access it,” wrote the BitDegree team in a recent blog.
The team is still working on a way to make a user-friendly way of converting payments to BTG tokens. But as the platform discovered, tokenization will not work if the public is not aware of how to use crypto tokens.
The BitDegree platform now offers a section dedicated to cryptocurrency knowledge, in the hope of making more users learn how to replace cash payments with BDG tokens. The BitDegree ICO was finalized at the end of 2018, collecting more than $22 million. The BDG token was down more than 19% this past week, to $0.0092, for a market capitalization of $3.6 million, much lower than the price at ICO.