Digipulse Angers Community with Coin Delisting, Accepting Fiat for Services

The DigiPulse project made an unprecedented decisive move against token manipulation, to make the digital asset solely usable within its service.

The DigiPulse project angered its community with a switch in the purpose of its digital asset, which puts under question the future utility of the token for its holders, as the company decided to delist the token and offer a new digital asset, which gives right to a prepaid vault service, as announced by the company earlier in August.

https://twitter.com/Obstropolos/status/1026126593809428483

The Latvian post-ICO project was launched just over a year ago, with the idea of creating a permanent vault for digital assets, ensuring inheritance and protection for the new asset class of cryptocurrencies.

When announcing the decision to delist its token as of December 15, 2018, the project’s owners said that so far “only two people had used the DGPT token for its intended purposes”. This is not unusual - even relatively popular projects and their distributed apps see only a handful of users.

“This decision didn't come easy (an understatement) but our data shows that the token isn't fulfilling its main objective. Out of the 320 service sign-ups we’ve had until July 25th, only 2 people have actually allocated tokens to the service, meaning that only 2 people have actually used the DGPT token for its main purpose,” DigiPulse wrote in a recent blog.

Usually, the value of tokens is left to be decided based on a market principle. Therefore, the move of DigiPulse to delist the token from the handful of exchanges where it trades is unprecedented. Most projects seek wider listings, and DGPT is only traded on Cryptopia, IDEX, and EtherDelta, with extremely low volumes. The lack of trading makes the price of the DGPT token undiscoverable, and the asset only usable for a niche service.

The announcement led to the crash of the already low DGPT market price, wiping out most of its market value from a recent peak above $0.20 and down to $0.02. Even the promise of new “future utility” has not boosted the token.

The fate of DGPT follows that of DappToken and IG Token, where owners of the IG digital asset crashed the price due to a botched token swap. In another recent example of a token failure, the BitDegree (BDG) project admitted that its BDG token struggles despite the growth of its platform.

Much like BitDegree, in the past, DigiPulse has also decided to include fiat payments for its services, as users found it impossible to pay in DGPT tokens.

Multiple projects with recent ICOs have promised a marketplace for the usage of their tokens, but most of the transactions still happen for speculative purposes. Tokens like District0x (DNT) and other freelancing platforms are also threatened by the low usage of their tokens. Even online gaming platforms like FunFair (FUN) see most of the tokens used for speculation, as the casino games of FunFair often have less than 10 users, based on data from DappRadar.

DigiPulse was a relatively small-scale ICO that only raised about $1 million in Ethereum. But its example is yet another reminder that the big promises of token-based startups may not materialize so fast.