The long-awaited minting of gold-backed tokens by Digix DAO (DGD) finally arrived, but failed to have an effect on the price of DGD. The asset slid by 5% to around $207.23, as interest somewhat faded.
After an initial test minting of 100 tokens, more DGX gold-backed tokens were created, with 10,000 tokens to 10 kilograms of gold. The token may be less volatile compared to other assets, however, it may still fluctuate with the price of gold, and it is unknown how trading would unroll once it starts.
“DGX tokens are backed by 99.99% gold cast bars from London Bullion Market Association (LBMA)-approved refiners on a 1:1 basis, where 1 token is backed by 1 gram of gold that is securely stored in Digix’s partner vault that is located in Singapore,” explained the organization.
At current gold prices, a kilogram of the precious metal commands a price of $43,733.10, or around six Bitcoin (BTC). This would give the DGX a fixed price of around $4.30. The price of gold on global markets has been rising, though more slowly, on speculation related to a search for a safe-haven investment.
The DGD coin itself is not gold-backed, but for a while, it was considered a safe haven and a hedge against Bitcoin in its latest drops. The asset, traded on Binance, appreciated to $500 before dropping to current price levels. But buying DGD also means exposure to low volumes. More than half of DGD trading is concentrated on Binance, but makes up less than 1% of trading on the exchange.
Despite its long history, the Digix DAO project is relatively unknown. Yet the project may be sitting on millions of Ethereum (ETH), being an early ICO.
The DGX token sees rumors of being listed on Binance, or another exchange. At the moment, DGX is only available through the Digix DAO marketplace. Additionally, previously minted DGX 1.0 tokens were transformed to be compatible with the new DGX 2.0 token. The Digix marketplace is open for purchases after a complete KYC procedure, available after Digix partnered with traceto.io, a service for customer verification.
This article appeared first on Cryptovest