A glance at the price chart makes it clear just how much the DGTX price can move in a relatively short space of time. But what can the last eighteen months tell us about the potential price of the token into the future? Here, we take a deep dive into the past, present, and future of the DGTX token value analysed by Luke Green — a fellow Digitex HODLer.
Historic Speculative Opportunities
For long-term DGTX investors, the all-time price chart tells a thousand different narratives. Regardless of your current investment position, it’s clear to see the historic price-performance has created some truly incredible investment opportunities.
For example, during the last 18 months, there have been two significant high points, $0.16c on the 14th of October 2018 and $0.14c on 11th April 2019. In that first run-up, had you timed your entry-exit perfectly you would have realized a 2600% gain in USD terms with the second run realizing another 450% USD gain. To put this another way you could have turned 100k of DGTX tokens into 11.6 million DGTX over just these two cycles. Isn’t hindsight a marvelous thing?
Of course, every money-making opportunity comes with some degree of risk and particularly in a young and nascent industry like crypto, volatility is an accepted part of the space. However, it would be fair to say that DGTX has taken this concept to new levels, leaving even die-hard crypto investors in awe of the depth and speed of its price swings. So what could be behind this?
Driven By Sentiment
To gauge why DGTX has been through such significant price swings, it’s important to understand some of the key concepts behind the token price.
Firstly, DGTX has perhaps one of the purest forms of ‘utility’ of any crypto project out there. To put that into some kind of perspective, it would be fair to say that the DGTX token is as vital to the Digitex Futures exchange as say, electricity is to the internet. In effect, the DGTX token is the raw digital asset that will power all financial transactions on the exchange. All account balances and transactions on the exchange are denominated in DGTX, so the exchange couldn’t even operate without it.
Secondly, as a result of this, it also means it has a very high ‘demand potential’. Not only will traders need to hold DGTX to trade, but a significant proportion of circulating DGTX tokens have already been locked away in long-term holders wallets.
Add into the mix a flourishing futures market which is ripe for disruption, commission-free trading and a provably fair matching engine, you begin to understand the level of demand that the DGTX token could experience.
This, combined with Adams infectious excitement for the project, has historically created a hugely speculative and reactive landscape with a price driven by pure investor sentiment. Whilst the retraces didn’t feel all that good at the time, on reflection, the price fluctuations are far from negative, and in fact, show just how promising and exciting the project is.
While the historic sentiment around the project has been an emotional rollercoaster, when you remove the noise of the highs and lows, it points to a very different story.
The price movements reveal that although Digitex has made a couple of very public mistakes, it has robustly responded, adapted and remained focused on the delivery of a working platform that lives up to its promise. This is clearly visible in the historic DGTX price movements. Each time DGTX has experienced setbacks, for the most part it’s returned to a baseline that’s higher than when it started.
To underline this point, anyone who bought during the ICO or indeed around May, June or July 2018 has seen a return of around 700% in just 18 months – that’s roughly 38% per month. When you consider some of the top hedge funds post yearly returns of 30%, it further proves that despite the drama and setbacks, DGTX has delivered real substantive returns.
While the now-famous launch issues were traumatic for investors, it has produced a silver lining, resulting in the appointment of leading Ethereum development firm, Smartdec.
Importantly it has also led to a much more pragmatic and development-led approach to reporting on the progress of the platform build. It seems that Adam and the team have now established a stable and secure foundation from which the project can move successfully to launch and onto greater success.
So What Does the Future Hold for the DGTX Price?
Of course, past performance does not necessarily give us the ability to accurately predict the future. However, there are some forecasts that I think we can be pretty confident about given the past performance of DGTX.
1. There Will Be Another Run up in the Token Price to Launch
With the Smartdec biweekly updates, we are seeing the real development foundations being put into place on the project as they happen. This is not marketing hype, but solid incremental consolidation and progress. You can be sure that the moment a launch date is confirmed, investors who have been holding off and waiting for news of a concrete platform will contribute to a burst of pent-up demand and the price will increase.
2. Any Price Below $0.05c Is a Strong Buy
This is simply a no-brainer. With the Digitex Treasury set to sell the token no lower than 0.05c, you can likely never expect to see the DGTX price dip below this level again, once the project gets underway.
3. Digitex Futures Will Become a Unicorn
A $1billion valuation? Ridiculous, I hear you say. But it’s a call I made from the outset. However, given the addressable market and the potential for this to disrupt an entire industry, I think this target is achievable, and then some. Watch this space!
Wrapping It Up
Whether you’re invested or not, a trader looking for alternative options, or just following the unfolding story, DGTX truly is a disruptive and innovative company to keep an eye on. It’s clear that, despite the setbacks, Digitex Futures is just getting started.
Wondering how to buy Digitex tokens? There are several options. You can buy through our exchange partners or Changelly Instant, but the best way to support Digitex is to buy your DGTX tokens from the Treasury. It’s instant, secure, and trustless, and you can avoid paying exchange fees. Furthermore, tokens sold through the Treasury provide a sustainable means of funding the Digitex platform over the next two years, ensuring a healthy period of stabilization post-launch.