The Top 10 Questions from the Atomic Wallet AMA with Digitex’s CEO
Thank you to everyone who joined in Adam’s live AMA in the Atomic Wallet Telegram chat yesterday. As a Digitex partner, Atomic Wallet supports more than 300 cryptocurrencies and tokens including DGTX. It offers a secure, anonymous, and decentralized way of storing your crypto assets and is reviewed as “excellent” by TrustPilot. The team there wanted to give their audience a chance to ask Adam anything about the project--and there were plenty of questions! Check out the top 10 below.
Top 10 Atomic Wallet AMA Questions
1. There are so many futures exchanges launching including Binance. How will you attract users with so much competition?
We’ll be the only zero-fee futures exchange so we will be a lot more attractive to short-term traders. We’re also not worried about how to encourage traders to buy DGTX. We'll have a bunch of competitions which will be volume-based, profit-based, and so on. A bit like how Kucoin did with Kumex, and Binance with their current futures launch.
2. What happens when you run out of money? How will Digitex create revenue other than minting tokens?
We have 100 million DGTX locked into our Digitex Treasury smart contract and they get released at a rate of 10m per quarter until June 2021. So we have revenue until at least the start of 2022. After that, we have the option of minting new DGTX to cover costs. But if we have a million traders and highly liquid markets, there are so many other ways of making money that we may not even have to do that.
We can charge listing fees on our spot market, we can run IEOs, we can have different levels of optional memberships. There's a lot we can do that will potentially remove the need to ever mint tokens. I wouldn’t be surprised if we never had to mint tokens for the purpose of revenue generation.
3. You are ready to launch Digitex Testnet on Nov 30, 2019. What features can we expect to have?
The testnet will have one BTCUSD perpetual swap futures market with leverage up to 100x. And we will restrict it to 10,000 by invite from our waitlist so we won't go over that amount until we're ready for them.
4. What markets will you add after that?
We will start with BTC/USD. After our launch and when everything works well, we will start adding other markets. Gold, silver, oil, etc, will eventually be added.
5. There are many rules and regulations on cryptocurrencies and exchanges. How can the Digitex trading platform face these problems?
We're currently registered in Seychelles where some other futures platforms are registered like BitMEX. However, rather than hiding behind an offshore jurisdiction and washing our hands of any sort of responsibility, we'll also be using best industry practices in terms of KYC and AML to ensure that we can restrict certain jurisdictions from using the platform and meet the obligations of most jurisdictions.
In the longer term, we may well look to register and become a licensed futures exchange in Europe, but of course, that takes a fair bit of time and money.
6. You’ve had some delays and been through some bad times, how will you still be competitive when you launch?
We're still the only zero-fee futures exchange so that will attract a lot of traders, especially the very active short-term traders who will create very liquid markets that will, in turn, attract more traders.
We had to delay the launch because the product that our last developers gave us wasn't nearly good enough. I can only keep going and do what I said I would do in the ICO which is launch a zero-fee futures exchange.
By doing that, I hope to eventually win back people’s trust by showing that we've learned from mistakes and persisted and done what we said we would do. Yes, there were development mistakes but it's more important how we handle them and move forward.
We had no choice but to soldier on and carry on until we deliver what we said we would deliver. Yes, it's been hard, but we persevered and I hope we get judged more by how we reacted to things going wrong than by the fact that things went wrong.
Basically, we're a startup and 90% of startups fail for various different reasons like the ones we faced. But giving up was never even a consideration. I'll do whatever it takes to make this project a massive success and knowing that internally allows me to ignore all the negativity.
7. Why did you choose the Ethereum blockchain and will you launch your own blockchain?
Ethereum is the backbone of so many projects. It’s the best one in my opinion and that's why we chose it. Its dev community is very strong, it has good leadership and when they figure out their layer 2 scaling solutions it will be unstoppable. We won’t be launching our own blockchain because we won’t need to.
8. Can you please give more information on the peg system?
The peg system will basically be another futures market that allows traders to hedge against price volatility of the DGTX token. Its main challenge will be making it liquid enough for it to be useful without excessive manipulation.
But even without using the peg system, many short-term traders will want to own it and use it to trade with because if its overall trajectory is upwards, then holding it is actually another benefit of trading on our exchange.
9. How did you come up with the idea for a commission-free exchange?
I was a futures trader for years trading very short-term in the open outcry pits in London and I was always getting killed by commissions and dreamed of being able to trade with zero fees. Upon discovering crypto and specifically Ethereum, I realized I could build it so I set about doing that.
10. Can we get a sneak peek of what the exchange is going to look like?
Not yet, but I promise you it's going to look awesome :)
Wrapping It Up
With over an hour of continued questions, it was a very lively and informative AMA overall. If you’re interested in reading the whole session, hop on over to the Atomic Wallet Telegram chat and read from yesterday September 11 at 16:00. You can also join in the conversation in the Digitex Telegram chat, we’re always happy to answer your questions. Thank you for your continued support!