Do I Own a Shitcoin?




DigixDao - Shitcoin Review


Jul 19, 2018


Volatility is some fun shit. It's like a roller coaster.

But...many plebs disagree, and want stability. Welp, it seems they are getting what they want.

Today we’ll talk about an interesting project that introduces a more ‘stable’ alternative. This project has more than 1 shitcoin associated with it! 2 in 1 baby...DigixDAO.

Let’s dig in…

DigixDAO (ticker: DGD)

Mid-Tier Shitcoin

 

Wtf is Digix?

Digix is an Ethereum based project (it was one of the first crowdsales on Ethereum). The tokens are called DGD.

We want to bring attention to the “DAO” portion of their name (which is a pretty shitty name in our opinion). DAO stands for decentralized autonomous organization. A DAO allows virtually anyone to vote and/or invest in new projects, startups and companies. This gets rid of the accredited investor requirement from the ‘traditional’ system, allowing all forms of wealth to have the same investment and ROI opportunities.

To repeat a DAO is basically like an incubator, and as proposals are presented to the organization, token holders can vote to support it or not.

Now to the stable shit…

As a reward for voting and contributing to the network, DGD holders are rewarded with DGX tokens. 1 DGX token represents 1 gram of gold.

Digix utilizes a Proof of Asset (PoA) scheme to prove the existence and ownership of an asset. In their whitepaper they note how they appreciate how this helps DApp creation as well. People can get creative with that data.

Proof of Asset uses both Ethereum blockchain technology, as well as the InterPlanetary File System (IPFS). The IPFS is an existing peer to peer network that designed to store all kinds of digital media. It’s a decentralized way of of tracking assets through long chains of custody. In this case, gold. 

Digix also uses three separate entities in their network to validate assets: the Vendor, Custodian and Auditor.

The Vendor is a company called ValueMax in Singapore that sells gold bullion bars. They are a publicly listed company.

The Auditor is Bureau Veritas Inspectorate, who check the quality and quantity of the gold. They are a trusted testing and inspection service for gold and many other assets as well.

Lastly, the Custodian Vault is near Shanghai airport in Malca-Amit’s climate controlled, highly secure facility. If you don't know, Malca-Amit is an international firm that specializes in storage and transport of extremely high value assets. They are some very legit shit.

It's interesting that these are all centralized entities..

Now after all of this validation, everything must be recorded to the Ethereum blockchain.

Additionally, PoA cards are given to users for confirmation of ownership. The cards are kept in their Ethereum wallet.  

The PoA card shows:

  • The timestamp of card creation
  • SKU of the gold bar (SKU is essentially a stockeeping method, to track assets by product number or a specific indicator)
  • Bar Serial Number
  • Chain of Custody digital signatures (Vendor, Custodian, Author)
  • Purchase Receipt
  • Audit Documentation
  • Depository Receipt
  • Storage fees due

The DAO is interested in a few specific niches including gamification (PoA can power the issuance of in-game items, or using the PoA network can have in-game items represent real world assets), escrow services, crowdfunding platforms, other asset backed tokens, lending platforms, and more.

So..in a nutshell that explains their efforts.

 

Who tf is behind this shit?

Per f***n usual, the team members are not the easiest to get data on. Here is what we know. They have founders named Teo Hye, Chng (that is one name), Kai C. Chng, Anthony Eufemio, and Shaun Djie.

Teo, its Chairman, provides IT expertise and business development strategies to Digix, and is the former chairman and CEO of a company called ‘Fujitsu Asia Pte Ltd’. They are an IT products and services company based in Singapore we believe.

Kai, its founder and CEO, worked on Wall Street as a trader at a global bank for 4 years. He is a graduate of the prestigious Wharton Business School at UPENN.

Anthony, founder and CTO, has 18 years experience in software development, IT, and security (we could have guessed this… lol).

Shaun, another founder and COO, is very active in the space as a lead contributor to the largest Ethereum meetup in Asia. That’s all we really got right now.

 

They have a lot to prove in this industry, but it seems they are a solid track. Mid-tier shitcoin, high risk, but let’s see how they do. If they fail, off to the deep deep dungeons of shit-tier land.

 

Hope you learned some shit.

Chat soon!

- Mike and Aaron