DigixDAO: Rising Counter to the Market Crash, on Demand for Stable Tokens
DigixDAO is the most curious asset right now, a standalone spike in prices while all other assets are falling.
The price of DigixDAO rose rapidly overnight, but the most curious thing is, this happened while all other assets shaved off gains and fell more than 20% across the board.
DigixDAO (DGD) was also the only asset to appreciate rapidly against Bitcoin, while altcoins sold off, as funds moved to BTC despite the crashing price.
What Makes DigixDAO Unique?
Digix is the first Distributed Autonomous Organization (DAO) started on the Ethereum network, which will soon be two years old, a long time by the standards of the cryptocurrency world. The Digix on-chain fundraising raised $5 million, which were more than 465,000 ETH at the time, or nearly $500 million at recent prices.
The main product of the Digix DAO is the still elusive Digix Gold (DGX) upcoming token, where each asset is secured by 1 gram of pure gold.
At the moment, there are no clear instructions on how to get DGX coins. However, the Digix DAO recently announced a new asset, the Dai Stablecoin, backed by the DGX tokens.
In a shaky market, Digix would be able to create a token with a secured value - and this may be one possible reason for the rapid rise in the DGD market price. The more trivial reason, however, could be a short-term pump.
Only time will show if the DGD token and its gold-backed counterpart manage to gain more significant positions in the world of crypto.