FXstreet

DigixDAO jumps to $791M market cap despite general crypto market downtrend.



January 2018 has been a volatile month for cryptocurrencies worldwide, with major news developments including increased South Korean regulation, Facebook banning cryptocurrency advertising, India pushing toward a crack down, and news of Tether and Bitfinex subpoenas. Much has been made of Bitcoin functioning as a store of value akin to gold, but Digix literally tokenizes gold on the Ethereum blockchain. DigixDAO was the first crowdsale conducted via Ethereum and the first major Ethereum-based Distributed Autonomous Organization (DAO). DGX tokens are positioned as the future gold-standard for Ethereum. Each DGX represents 1 gram of physical gold (99.99% LBMA) stored in a safehouse. This asset-backed tokenization stabilizes the DGX price (short of some major drop or spike in the value of gold itself); the current jump in DGD does not have to do with DGX directly.

DGD is based on a Proof-of-Asset protocol, which marries real world governance and blockchain technology. According to DigixDAO, this ensures (as the name implies) the asset-backed protocol, which can apply not only to gold but other financial assets.

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