Digitex Addresses Recent Events and Explains the Treasury Mechanics
Digitexers, some of our community members have been asking for an explanation of recent events over the weekend. We have been working hard to assess what happened internally and ensure to contain the issue before putting out a company communication. Now we are certain of the facts and the best way to move forward, here we share with you what happened, what’s being done, and offer both our sincere apology and deepest thanks for your support even during our hardest moments.
Digitex Facebook Page Hacked
You may have seen the unfortunate Facebook hack for yourselves or perhaps a screenshot of the post in which some slanderous text was written and a Google document was shared exposing some customer user data.
The hack was an internal issue orchestrated by a scheming and highly manipulative ex-employee whose professional interests are now in conflict with Digitex’s success. This person was able to access user data and hijack the company’s Facebook account, posting the leaked data and removing everyone from the company as admins from the Facebook page. This means that we were temporarily unable to remove the post or even put out an official comment.
Every measure was taken to regain control over our account all throughout Saturday night and Sunday. The post was arranged at the perfect time in the middle of the night in Moscow, so as to catch us unaware at a time when this person believed no one would be watching the social media channels.
Whilst we were in contact with Facebook as soon this came to our attention, their customer support is slow and unresponsive. Eventually, we were able to regain access to our account and delete the malicious user.
We are deeply sorry for the inconvenience caused to the customers whose partial data was leaked. We would like to reassure them that beyond their email addresses, no other sensitive information was gathered nor released.
Moreover, Digitex was the subject of a malicious internal attack by someone we had trusted, we were not compromised by third-party hackers. This is an important distinction to make. We know the perpetrator and every step has been taken to not only remove all access to all channels that this person had but also proceed against this person through the legal channels in our reach.
Digitex claims responsibility for this malicious attack. This was an issue of breach of trust. We gave it and it was broken. We now understand that we should have done more to ensure that this type of event was impossible to happen and are now being guided by experts as to how to keep all our internal cybersecurity operations watertight.
Possible Consequences of the Hack
For those people whose emails were released, we ask that they be extra vigilant. It is quite likely that they may be targeted by opportunist hackers through phishing-style campaigns. They may be emailed and asked to reset their password, they may receive a personalized message from Adam or someone on the Digitex team asking for sensitive information. We advise the following:
- Never, ever respond to an email from Digitex Futures unless you are 100% certain of the source. This is good practice when it comes to any activity online.
- Always login via the official exchange page.
- Bookmark our exchange page so that you can always be sure of visiting the right site online and not fall victim to hackers.
- Remember that no one from Digitex will ever ask you for any DGTX, ETH or other currency up-front.
The Digitex Treasury
Since we removed the 5 cents minimum and introduced a 10% bonus on purchases, you may have noticed that there has been some very high activity on the Digitex Treasury. Many of you have wondered if this massive buying spree, while the token price is so low, is harmful to the company. As you know, we are experimenting with the best way to sustain our Treasury, selling tokens while rewarding those who buy from us at a premium.
Since the price has thus far suffered slightly and there may be some people who are buying tokens from the Treasury to sell them immediately on the exchanges and then wait for their 10% bonus which is their profit on the trade, we will be closely monitoring the situation before we make an informed decision over whether to remove the 10% bonus.
These actions could potentially exert downward pressure on the price, although this is not certain yet and we will continue to monitor if this is the case. We welcome community members’ feedback and analysis of this scenario as well, after all, it’s the community that voted for the 10% bonus and we want to give it a fair review before shutting it down.
On the upside, we are selling tokens and the majority of buyers are stocking up on DGTX ahead of the mainnet because they understand that it is at a knock-down price right now.
Will removing the 10% bonus while keeping a 5% premium act as a disincentive to buy from the Treasury? No, we believe that it will not. Not only will traders need to purchase DGTX ahead of the April 27 mainnet launch, but because of the mechanics of the Treasury, there are actually times when people can take advantage of a good price buying from the Digitex Treasury. Allow us to explain.
Digitex Treasury Price Premium Mechanics
If the Treasury price of DGTX is between 2-6% above the price of DGTX on CoinMarketCap, then no action is taken. But if the Treasury price is outside of that range then the price is reset to be 5% above. When the Treasury price is reset, there is a 15 minute delay imposed on the price update which creates small windows where the Treasury price and CoinMarketCap price might converge.
So when the DGTX price pops or when ETH pops, there are these 15 minute windows where users can get a better price on the Treasury than 5% above CoinMarketCap. Users can see the exact current price on the page or they can see more detail on the Events tab of Treasury smart contract page on etherscan:
This screenshot shows the new rate and what time it will become active:
Users can calculate the current Treasury price in cents by first going to CoinMarketCap and getting the ETH rate. Then they take the newRate price of 5798441 divided by 1000, which is 5798.441. So if the current ETH price on CoinMarketCap is 220.71, you do the following calculation to see the current Treasury price
220.71/5798.441 = $0.0380
If you visit the Buy DGTX page you will see the same rate of $0.0380 there:
To see when the rate becomes valid, simply take the current time in seconds and subtract the rateBecomesValidAt value. If the result is a positive number that means the rate is already valid. If not, that means the new rate has not become valid yet. For example, according to epochconverter.com the current time is 1581344652. So 1581344652 - 1581342617 = 2035, which means that in the above example the new rate of $0.0380 became valid 2035 seconds ago.
If the result is a negative number, that means the new rate will become valid in that many seconds. In this way, users can see when a rate update is coming and what the new price will be because all rate updates have a 900-second delay (15 minutes).
We hope that our explanation of the Treasury mechanics and the events of the weekend have been laid out here. Please, if you have further questions, be sure to contact us through the . Once again, we thank each and every one of you for your continued support.