Digix DAO (DGD) Rose Above $500, What Drives the Spectacular Rise?

TheDigix DAO is a relatively old post-ICO project, which this week saw a relentless rise to dizzying price levels. The asset had a post-ICO trading price of 0.07BTC, and has now spiked to 0.05BTC. Like many altcoins, this asset traded with almost flat dollar prices for years, before starting to spike in the spring of 2017. Yet the biggest boost came after the November listing on Binance.

Now, DGD is one of the most actively traded assets on the exchange, and its price grows as Bitcoin slides. DGD added 3.2% in the past 24 hours to $551, on volumes doubling overnight.

At the end of February 2018, the fundamental factors for this project are the long-awaited launch of the native decentralized exchange by Digix.

And since there is just a month left and the expectations of an exchange, a fixed-price gold-backed token are increasing the visibility of the project, and boosting the price.

Yet communication from the DGD team has been scarce, though regular, coming mostly through developer updates and relying much less on marketing.

It is possible that the interest in DGD has come from YouTube promoters misleading investors that owning DGD tokens would lead to a payout of what would resemble dividends.

"We would like to reiterate as we have done for the past few months that DigixDAO does not give out any dividends. There are explicitly no “dividends”, “interest”, “passive income” nor “rights to profit," write the Digix team in a recent blog.

The organization gives certain rights to token owners, but is in no way promising easy gains just for holding DGD.

There are indications that the Digix team may soon start more coordinated marketing efforts, after hiring a new brand specialist, Shawn Tjang, to improve user experience.

The DGD price at ICO in 2015 was around $3.25, so the recent price spike may soon reach 20,000 in price growth over the years. But in the shorter term, the DGD price starts to look precarious, as it is mostly limited to a few exchanges and sentiment and trading approaches may shift soon.