When it comes to innovative business models, Digitex Future Exchange is working to take the cake. Live from Q4 this year, traders will soon be able to trade Bitcoin, Litecoin, and Ethereum Futures with ZERO commission fees. They say it all starts with a dollar and a dream. In this case, it all starts with the DGTX token and a vision for a highly liquid trading platform profitable for futures traders. Let’s take a closer look.
What Is DGTX and Why Is it Increasing in Value?
For the technically inclined, DGTX is an ERC-223 compatible protocol token based on the Ethereum blockchain. It is required to perform all functions on the exchange, which means there will be a continued demand for it. The DGTX was created to be the native currency of the Digitex Futures exchange and will be used for denominating:
- Trader Profits
- Trader Losses
- Margin requirements
- Account Balances
A Hybrid Model for Increased Security and Speed
To provide traders with confidence in the performance of the exchange, Digitex combines the speed of a centralized server and the security of a decentralized blockchain. This hybrid solution in conjunction with smart contracts provides the following benefits:
- Digitex exchange is scalable to deal with high volume trading
- The central server allows traders to make real-time calls on trades
- Traders will be able to use sophisticated trading tools and strategies
- Traders can use leverage to optimize their positions
- Bad actors can’t inject fake data to make withdrawals
- Servers hold no funds and are therefore not attractive to hackers
- Funds used in a contract can’t be used by the exchange
- Smart contracts have limited function and reduce the chance of human manipulation
There are additional benefits to things being set up this way. For example, Digitex will never hold or control your tokens. Traders will always control their private keys. This is what you want to hear when it comes to security (or lack of) on an exchange. And it will be used in the smart contracts to reduce the overall cost of on-chain transactions.
The Digitex Futures ICO
Digitex Futures held their ICO in January of this year and it sold out in a record-breaking 17 minutes! This demonstrated a clear demand for commission-free futures trading and helped the company amass a large community of supporters. The price was 0.02 and over the last 30 pays has since experienced a 175.85% rise valued in USD. At the time of writing this article, DGTX token was priced at 0.07!
The word is getting out among the trading community, Digitex is going to lower the barrier to entry for futures exchanges. The enhanced UX with one-click trade calls in real-time is what traders are looking forward to.
The futures exchange will provide the right platform for new and older traders to develop more aggressive trading strategies that could be more lucrative, in turn, building liquidity in the market.
Moreover, CEO Adam Todd will be demoing the platform live at the Malta Blockchain Summit 2018, next month. Token holders are anticipating the presentation on the Blockchain Island and the Q4 launch. All the preparation for launch day means the DGTX price is rising in value and all the signs are good for it staying that way, by far outperforming all major altcoins.
The Magic of Commission-Free Trading
How does a trading exchange manage to offer commission-free trading? Zero fee trading is achieved by minting a small amount of DGTX tokens to cover costs. In order to use the exchange, traders must purchase DGTX tokens in order to buy or sell futures contracts.
What trader would pass up on the chance of unlimited trading with zero trading fees?
When the platform launches later this year, this will have a two-fold effect for traders. One, traders looking to enjoy the feature of zero-fee trading will create a demand for the token. And two, the value of the DGTX token will almost certainly surge once more because of the limited supply in circulation.
Digitex Futures will also use automated market makers. These are basically trading bots programmed to break even and increase liquidity. They have been allocated 200 million tokens to use help with stabilizing the supply and demand of orders.
Decentralized Governance by Blockchain
The issuance of new coins is how Digitex covers the cost the trading of Bitcoin futures contracts and daily operations of the exchange. The supply of the DGTX token will be regulated by the DGTX community. The decision on how many and when tokens will be added to the circulation pool will be voted on. Token owners will have an equal vote.
The power to the balance of price growth and inflation will be placed in the hands of the DGTX token holders. Thanks to its record ICO sell out in January of this year, Digitex has raised the funds needed to cover operations until 2021. Meaning there is some time until token revenue voting needs to be done. But more importantly, the cost of trading will be covered for the next two years once the exchange goes live later this year.
Making Sense of it All
Digitex Futures Exchange is working to build something innovative. The exchange is opening the door to commission-free crypto futures trading. By combining centralized and decentralized technologies a balanced level of security and speed will be achieved. Traders will be able to enjoy one-click trading and the option of placing margin calls. There will even automated market makers to help build liquidity.
The issuance of tokens will be based on what DGTX community votes on by decentralized governance. Token holders will have a voice. In reviewing the track record of the token price, DGTX is already making a name for itself in the 2018 bear market by not following the trend of other coins depreciating in value. No one has a crystal ball for what the markets will do, but our bet is on the DGTX going up and up.