The Bitcoin Podcast is one of the most established and respected podcasts out there, reaching a daily download peak of 10K at the height of January 2018. Check out their latest insightful interview with Adam below by clicking on the link. Hear how he brought Digitex from an idea to reality and what makes the exchange so appealing to futures traders from both the traditional and cryptocurrency industries.
How Digitex Came to Life
When podcast host Dr. Corey Petty asks Adam how he got into crypto, he explains that it was all because of futures trading. Adam, as many of you know, was a short-term scalper and futures trader bugged by commissions for years.
Paying out commission fees often turned winning days into big losing days for him. He dreamed of a system in which traders could make a living without losing out to the house–but he never really thought it would become a reality.
When he discovered Ethereum and the possibility of creating his own token, Adam realized that he could build a trading ecosystem where trading in the token could remove commission fees.
The Digitex Futures revenue model works by aligning the exchange’s interests with its users. Instead of working against them, Digitex and traders want the same thing: token appreciation.
When Corey asks how Adam realized that he could actually make the whole thing happen, he explains that it was about 18 months ago “when it really clicked.” That’s when Adam wrote the Digitex whitepaper, started showing it to people and getting good reactions. He says:
“It took on a life of its own”
What started with an idea, all of a sudden became a reality–and a quarter of a million people on the waitlist for the ICO–which we all know, sold out in 17 minutes.
The Interests of the Exchange Are Aligned with the Users
Adam explains that typical exchanges always work in the same way. It’s always the exchange versus the users since the exchange wants to make as much profit from the users as possible. However, with Digitex, our interests are actually aligned.
Since our revenue comes from a rising token price, and traders want the token price to rise as well, it’s a win-win model for everyone. We make money from the appreciation of value from the tokens, and minting a small number of tokens each year. That’s how we can make a profit without siphoning money from the liquidity pool in the form of commissions.
Everyone needs DGTX to take part in the exchange. But the small inflation caused by minting tokens will be offset by the demand for tokens and rise in token price.
Corey aks how token holders will feel about the inflation and how the minting works and Adam explains that the token holders themselves decide and control the level of inflation.
It’s all done by a voting mechanism and the whole Digitex community votes on all proposals put forward. They have to decide whether to agree on token minting to finance the exchange or not. So the people who are affected by the inflation rate are the ones that get to vote on it and control it.
Who Is the Digitex Audience?
Just like all projects that evolve over time as technology enables, Digitex Futures’ initial market was cryptocurrency users. However, after exploring the size of the futures market and the number of retail traders out there trading forex and traditional futures, the audience has widened.
While cryptocurrency users will be our largest target, it won’t be long before Digitex is also catering to traditional traders. Our exchange will soon be offering futures trading on more than cryptocurrency. We’ll be adding markets like gold, oil, tech stocks, metals, indices, and bonds–with commission-free trading on all types of markets.
Once the CFD market finds an exchange that’s aligned with their interests, Digitex will help to bring more people into cryptocurrency.
Corey points out that one challenge ahead for us will be the learning curve and teaching traditional investors about crypto, the concept of non-custodial accounts, smart contracts, etc. But we’re more than prepared for that. We’ll be releasing plenty of educational material for all our audience to “bridge that gap.”
Futures trading is a massive industry and zero commissions on futures trading will naturally attract futures traders from all walks of life.
The fact that the exchange is non-custodial will also relieve people who are put off from entering crypto because of hacking attacks on custodial exchanges. Adam enthuses:
“The audience is massive”
Even if only 5% of the million people on our waitlist follow through, that’s still 50,000 people trading! That is a busy exchange, and that will attract professional traders and bring in more liquidity.
What’s on the Near horizon?
Of course, the most important development coming up is launching the exchange to the public. That’s why we’re pooling all our resources into the quarter two public launch.
Adam explains that development is on track and that we’re even bringing several things forward that we had on our road map. These include a mobile app and a public facing API.
Adam’s been busy over the last few weeks building up the development team and we’ve now onboarded some of the best smart contract developers in Moscow. He says:
“We have a really solid team now.”
With quarter two approaching fast, it’s non-stop at Digitex right now! So stay tuned for the latest developments and keep referring friends. In the words of Adam, things are “about to get crazy.”