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Rising and Falling: DigixDAO

How crypto products can rise and fall. A chart alone...
crypto-reports

By crypto-reports

 

July 6, 2022

Rising and Falling: DigixDAO

DigixDao is a cryptocurency built on the Ethereum network. The idea behind it is to offer a gold backed crypto through its Proof of Asset (PoA) protocol.

This idea was created in 2014 and DigixDao held an ICO in 2016. The ICO price was set at $4.20 per coin and raised $5.5 million USD.

After the ICO

Only a year after the ICO, the price of DigixDao started skyrocketing. It shot up to nearly 100x its original ICO price to nearly $500 in the course of a year. This was due to an influx of positive news regarding DigixDao, including the fact that it was pushing to be listed on multiple online crypto exchanges.

One of the largest exchanges at the time, Gatecoin, even provided press releases regarding the listing of DigixDao in order to drum up business for both parties. The CEO of Gatecoin at the time weighed in and stated “We see great potential for an increasing number of ‘blockchain assets’ such as DAO tokens for dapps being built on top of Ethereum, such as Slock.it and DigixDAO”.

Given the speculative nature of the product, the coin price quickly declined to sub $20 in 2019, where it remained until 2020. Finally, along with bitcoin and the other cryptocurrencies, DigixDao was given another opportunity to ride a bull market and reached an all time high of $1,350.

Final Downfall

Given DigixDao was lucky enough to ride two separate crypto bull markets, people may be wondering if there is a possibility of a third. Unfortunately, as time has gone on, DigixDao has received additional scrutiny given its asset backed nature. Since it portrays to use real gold for its PoA, it received the attention of the Singaporean Government.

On DigixDao’s own website, only a single screen can be shown stating that operations will be suspended until further notice. Given the opaque nature of its PoA, government intervention and lack of resumption of service date, it is likely that DigixDao will not be able to run up in price a third time.

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