If you looked at your blockfolio over the last few days, as the nursery rhyme goes, “you’re in for a big surprise”! The crypto market has been hammered lately, and has fallen from an overall high of $800 billion to it’s current market cap of $400 Billion. Some of the alt’s like Deep Brain Chain went up rapidly in December, from an ICO price of around $0.01, listing at $0.07, going up to $0.65 and now tumbling in the last few weeks back to $0.07.
Nearly everyone of the top 20 crypto tokens listed on CoinMarketCap has tumbled over the last 24 hours, between 15% and 30% down.
Possibly it’s a “Crypto Flash Sale” as the crypto pro-community like to say when these corrections / crashes happen, or it’s the bubble bursting, as the anti-crypto community chime in – no-one knows!
One thing is for sure – the crypto market was overheated over the last few months, and needed a correction. Whether this is a correction, or a crash, only time will tell.
And amongst this crypto chaos, there was only one single token that went up over the last 24 hours. But it didn’t just go up – it shot up!
DigixDAO went up 41% to a token price of $348, a market cap of $697, and is now currently ranked at number 34 on the coinmarket cap list of tokens.
One of the reasons for the rise both yesterday and the last few months for DigixDAO is the FUD and negativity that Tether has been getting over the last few weeks.
For those who aren’t aware, Tether is meant to be backed by hard fiat currency, and initially it was. But as time went on, and the market cap of Tether grew, the bank supporting Tether withdrew, and Tether stopped allowing the public to get transparency on whether it was really backed up.
The terms for Tether became extremely murky – instead of being backed up by hard fiat currency, Tether’s FAQ changed to say that it was backed up by “Assets” which meant that if Tether had bitcoin at $20k per bitcoin, then that was sufficient backup. Obviously, with crypto prices tumbling, if it wasn’t fiat backing it up, there was a problem.
Also, with Tether, it was discovered that it was actually owned by Bitfinex, which is one of the largest crypto exchanges in the world, controlling around 10% to 15% of the global crypto exchange trading.
There were rumours flying around that the owners of Bitfinex and Tether were issuing more and more Tether in order to prop up the crypto market. About 2 weeks ago, $1.5 Billion of Tether had been issued over a significant (in crypto terms) period, and then in a space of a week, as the crypto market was taking strain, Tether issued $100 million dollars a day consecutively over 5 days.
The straw that broke the Tether Camel’s back was when the US government subpoena’d Bitfinex and Tether to try and get to the bottom of it. Rumours on Reddit and other crypto communities aren’t showing a lot of support for Tether to actually be legit in what they’ve done, but at the same time, they’re commenting that Tether’s $2 Billion market cap is similar to the $2 Billion that Bit Connect had when it began it’s fall, and that in a market of billions of dollars, a few billion dollars is not material.
Unfortunately, it is. If Tether’s owners were buying $100 Million of Bitcoin every day using fictional newly issued currencies, that is a big deal of new liquidity into the market, and could easily explain why the market was supported over the last few weeks / months even during it’s moment’s of weakness.
Which brings us back to DigixDAO, which is claiming that they are backing up their tokens with Gold Bullion. This sounds very similar to what Tether claimed in the beginning, and if DigixDAO truly can find the reserves to back up the market cap, it could provide comfort to people that there is something tangible behind the numbers. But if the market cap goes too high, it could be another Tether in the wings.
DigixDAO describe themselves as… a Marketplace for Gold Bullion!
Every asset represents a unique bullion bar sitting in designated custodial vaults. The provenance of the Gold is traceable, immutable and exists indefinitely.
On their FAQ, DigixDAO ask themselves where the Gold Bullion’s are held, and reply with a 1 line:
Where is the Gold bars held?
They are held at the Singapore Safe House – http://thesafehouse.sg/
For a crypto company that is worth just south of $1 Billion, the BuyPreSaleICO team can’t understand why more details and credibility can’t be given. Surely they can get a copyrighter, to provide copy that gives the facts, and provides more certainty that this isn’t another Tether fiasco!
Regardless, the crypto market currently has faith in this project. Rising in a strong bear crypto market is one thing, but rising so sharply is quite a feat.
The volume being traded on DigixDAO is also extremely high, and not only on one of the exchanges, but on multiple exchanges.
Over $100k was traded on 9 crypto exchanges in the last 24 hours, with Binance doing $70 million of volume with DigixDAO pairings with Bitcoin and Ethereum! Huobi did another $13 Million of volume with DigixDAO pairings with Bitcoin and Ethereum.
Have a look at the DigixDAO website, and let us know below what you think?