It’s only natural that you have questions. We couldn’t claim to have the busiest and most engaged Telegram group if you guys didn’t talk to us all the time! So, beyond our 24/7 community management support, we thought you’d like to hear about our plans straight from the horse’s mouth (sorry Adam, just a figure of speech).
AMA with Adam – Beta Version, Roadmap, and Digitex Treasury Explained
Check out the video below in which Adam answers all your questions live about why we decided to create the Digitex Treasury, what’s going on with our roadmap, why the token price has dropped, and whether the team is dumping tokens. If you don’t have time to watch the recording, check out the highlights below.
Q: Is the team dumping tokens?
Adam: First of all, if we were dumping tokens, we wouldn’t announce that we were going to sell 100M tokens first. The easiest thing of all would be to simply sell our tokens without letting anyone know. We’re advising you all of the Digitex Treasury token sales so that you can see how we raise funds in a transparent way.
Moreover, the team’s tokens are in a vesting smart contract and are locked in there for the next three years. Tokens are released every three months and of course, the team is allowed to sell tokens if they want. They’ve earned them, after all. But you’ll see the team is not dumping, they’re actually buying more tokens. The paper trail is all there.
Q: Have you run out of money?
Adam: No, we haven’t run out of money. We have enough to go well into next year. However, our plans have changed and we’re bigger than we realized. We need more funds to reach all our new goals, such as launching new markets, adding spot trading and decentralized account balances, and going up against BitMEX.
Moreover, so far, we’ve only focused on the English-speaking market. If we had more money, we could expand into new markets, Asia, Eastern Europe, Latin America. We need to localize each version of the exchange and the website.
So, the takeaway? We do have enough money. Yes. Do we want more? Yes. We should always need more and always strive to be better. There’s so much more we can do–not to mention speeding up hitting every milestone on our roadmap.
Please ignore the FUDers. We knew this was a risk, we’re aware of the private messages on Telegram. But we’re raising funds in a transparent way that you can all see that doesn’t dump the price. You can see what’s happening and when. Selling tokens is not bad, that is our stated revenue model and we now have to have a mechanism in place to do it.
Moreover, if DGTX went up to $1 a token as projected, we could potentially postpone minting until 2023, 2024, or even 2026! This would be great news for investors as the demand increases and there is no inflation.
Q: What is the Digitex Treasury?
Adam: The Digitex Treasury works as an ongoing token sale with 10 million DGTX released for purchase straight from us every quarter until the full 100 million DGTX have been sold. This will begin on March 1.
The price will be at a slight premium so that we cannot be accused of dumping tokens or allow any traders to dump tokens at a cheaper price on an exchange.
The premium will ensure that no tokens are dumped and people will pay the premium to get an instant and trustless transaction.
Q: Should there be a limit to the fundraising?
Adam: Some of you wondered if $50 million isn’t too much money and whether we should limit the fundraiser. We don’t see the need to do that. To start with, this would be an amazing problem to have! Why would we limit it? With active users on the exchange, they’ll need support, team members, marketers, developers, linguists, community managers, writers, engineers–with these kinds of funds, we could be unstoppable.
You’ve seen what our marketing team can do with $50,000 per month–imagine if they had millions to spend!
BitMEX spends $5 million a year simply on office space. This is what we raised in our entire ICO–let’s do this thing properly and really go head to head with the big players.
Moreover, we’re looking at moving to Malta and that requires a minimum of €2 million in legal fees, in getting compliant, in setting up the offices… There is always a need for more money, there will always be new ways to grow.
Q: Why don’t you find private investors?
Adam: That’s exactly what we don’t want to do. Private investors leave us all vulnerable to the influence of whales. We don’t want to do this. Through the Treasury, everyone will see how much money we’re raising, and how it’s transparent.
The whole crypto industry has suffered at the tails of giant whales swishing them and moving the market. Let’s make DGTX for everyone.
Q: The top 10 of the waitlist changed, is there an updated process for the rest?
Adam: Yes, it changed because as we explained we were verifying every email address. There were a few fraudulent emails and emails that bounced back or were unverified. We’re applying this anti-fraud check to all the top names on the list.
Q: Why have you diverted from the revenue model?
Adam: We haven’t really changed the revenue model. It is still token issuance but we have decided that 200 million for the market makers is too many. We have a responsibility to make sure these tokens are used in the best way possible and we have concluded that 20 percent of the supply for market makers is too many.
It’s money that can be spent in a more efficient way to fund marketing and development that will, in turn, create increased token demand.
Q: Will there be full KYC?
Adam: Yes. As you know, we’re not fans of KYC, but it’s almost impossible to operate in this world without KYC. We need to be credible and legitimate and as we move to Malta we’ll be a regulated EU exchange and if the cost of that is KYC, sorry, guys, we have to do it.
Q: Why buy from the Treasury if it’s at a premium?
Adam: Because the transaction is trustless and instant with zero slippage. If you want to purchase a large amount of DGTX and don’t want to go through a centralized third-party exchange, it will be worth paying the premium for some of our community.
Q: You say you’re adding traditional futures markets like gold and oil, what does that require?
Adam: One futures market is very similar to another, so form a technical standpoint, it isn’t much different. We can absolutely and will absolutely be able to do this. Moreover, the contracts will all be cash settled so we’ll never have to actually buy thousands of barrels of oil or bars of actual gold.
Q: Why set the low at 5 cents?
Adam: We have to set a low and we’re simply not going to sell DGTX for lower than 5 cents. It is way too cheap and we have decided that we will never go below this. If they don’t sell, it doesn’t matter, they will roll over to the next quarter.
We see this scenario as extremely unlikely, but in the event that it’s possible, it doesn’t matter if they don’t sell. We are simply not giving tokens away. Once the FUD is out of the way and the temporary price drop is over, we know that demand will shoot up once again.
Q: Will you definitely be up and running by Q3 and meet the roadmap?
Adam: We absolutely believe we will. It hasn’t even been a year since Digitex Futures was little more than an idea. One year ago we hadn’t even held our ICO. We went from an idea to raise funds, to launching the closed beta this month.
We’ve even blown up the token price in the most relentless bear market possible and created tremendous value for our token holders. Let’s see what we can do in 2019.
Q: Some people say that plasma is years away, is this true?
Adam: It’s not years away, they are already running side nodes with 25,000 transactions. These are our guys right now. That is working right now. It’s a very good solution with a lot of smart people behind it and we’ll be making good on all our promises in 2019, not just Digitex but crypto as a whole.
Bakkt is coming in, institutional investment is coming in, plasma is going to be instrumental to mass adoption and scaling, crypto is going to see massive things going on.
Q: Why has the price dropped?
Adam: We just announced that we are launching token sales and some short-term traders have decided to dump. It’s an initial reaction to the news, but as we said, if we were going to dump tokens, the last thing we would do is announce it beforehand.
The FUDers are having their moment but we’re offering a clear way of raising funds over the next few years. Being a business costs money, that’s just how it works. We’ve created a lot of value and we’re not nearly finished yet.
Q: Will you still have decentralized governance?
Adam: Yes, absolutely. When token issuance starts, we will be doing it by decentralized governance as started, nothing has changed there except the possible postponement of the need to issue more tokens.
Q: Will there be a maximum amount that people can buy?
Adam: Yes, we want to avoid having whales coming in, there will be a limit of 500K DGTX.
Q: Will the transactions be transparent?
Adam: Yes. It’s a smart contract and you can see all the transactions in a complete and fully transparent way. Everyone will be able to see what’s happening and when.
Q: With every sprint will there be downtime?
Adam: We don’t believe so, but this is why we are starting with a small group of traders who don’t have to use their own money. If we do have to fix any bugs or have any downtime, we will never be putting anyone’s own funds at risk.
Q: How will the Beta testers trial the platform?
Adam: They are the first 5,000 on the waitlist, they will be let in this month and be trading with the 1,000 DGTX they received. They will be testing the platform and if anything freezes or there are any bugs, they won’t have to risk their own money. Realistically, as stated, we believe we will need at least three sprints to iron out any sprints.
Q: When Binance?
Adam: Well, we have some plans in the works, but we’re not convinced that getting on major exchanges is really worth it. We already have a lot of exposure. Maybe getting on a big exchange could make the price pop, but we’d rather get the fundamentals right first, launch the product and get things working and build our community.
That’s a much better way than getting on big exchanges–which costs an absolute fortune, by the way. Money that can be allocated to building the product rather than paying for exchange listings.
Q: Will public launch be quarter 2?
Adam: Yes, absolutely, it will be.
If you still have questions, don’t hesitate to let us know and drop us a line through Telegram at any time. Thanks for your continued support!