AMA with Digitex Futures
September 10, 2019
On September 11th, we had an AMA session with Digitex, a commission-free futures exchange with its own native cryptocurrency, the DGTX token, in our Telegram Chat. The team members present on the discussion with our community were CEO & Founder Adam Todd, and Community Managers Sona, Radim, and Jolien. Here are the essential points of the session:
Please, welcome Adam (A), Jolien (J), Radim (R), Sona (S) and the questions from our Telegram chat members (Q).
Digitex on the Futures Exchange:
Q: What are the potential user base and market opportunities of DIGITEX?
A: the potential user base of Digitex is millions strong because many people will be attracted to a zero-fee futures exchange where it’s actually possible to make money because there are no built-in mechanical edges constantly working against you like on every other fee-charging exchange.
Q: Currently, so many futures exchanges launching like recently Binance launched its futures exchange? How will you attract users in this hard competition?
A: We’ll be the only zero-fee futures exchange so we will be a lot more attractive to short term traders.
Q: Do you think you can run your exchange in the US? What are the future plans for other countries?
S: If the US is one day open to cryptocurrency futures platforms then, of course, we will do our best to be compliant and open up that market but the likelihood of that at this stage is very low, and even on compliant platforms US users are restricted in leverage or margin sizes.
Q: Liquidity in any exchange or trading platform is very important if the platform has no liquidity no one will use it, so how are you going to make DGTX a high liquidity platform? Why did you choose your project as a futures exchange?
J: We will have market makers that will get this market very liquid from day one and the combination of the centralized matching engines with decentralized accounts is unique.
Q: There are many Rules and Regulation are there on cryptocurrencies and exchanges? How the Digitex trading platform can face these problems?
S: We’re currently registered in the Seychelles where some other futures platforms are registered like bitmex. However, rather than hiding behind an offshore country 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.
Q: What is the advantage of using Digitex over regular money at banks?
R: I think this is probably more question for cryptocurrencies in general. DGTX token has its value because it’s the only cryptocurrency that will be accepted at Digitex futures exchange for futures trading.
Q: Can you please give more information on the peg system?
A: peg system will basically be another futures market that allows traders to hedge against the 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.
Q: I have seen that you have faced a very bad stage after starting this project, you faced negativity, negative comments, people called Digitex fake, etc. I am still wondering that how you managed to cope up with all those negative thoughts and comments from your community & how you tackled Social and intellectual problems as I can see you guys are still standing strong.
A: 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.
Q: Tones of blockchain projects live today – some are zombies – so what do you think is the biggest mistake they make and what is your solution to this/these?
A: I’ve learned firsthand that there are many mistakes you can make! It’s inevitable when setting up what is basically a startup. But I guess their biggest mistakes are not getting enough people interested in their product because at the end of the day every business, no matter what, is really a marketing business. Too many people have a good idea and a nice whitepaper but they mess up the marketing.
Q: How many people are working right now on Digitex? Are you going to expand your team after testnet?
A: Currently our development team stands at 17 people and we have about 20 people involved at varying different levels in the marketing team.
On Trading Platform:
Q: What are the requirements to take part in Digitex Treasury Token Sale? Which country is restricted from taking part in Token Sale?
A: Anyone can buy from the treasury token sale except US people and a few other countries like Cuba, Iran, etc.
Q: What is the minimum requirement for first trade?
S: We’re running perpetual markets on our platform where each contract costs $1. So effectively the minimum you would actually need to trade is 1cent if you used 100x leverage to buy 1 contract.
Q: How can Digitex provide 0 fees?
R: We will not ask any fee’s instead we have other ways to make money like treasury and token minting for example.
Q: There are so many other blockchains, why the ETH blockchain chosen for uprising DGTX? There are multiple localized gateway exchanges and bots in the market, which are getting popular. How will DGTX compete with all of them?
A: Ethereum is the backbone of so many projects, it’s the best one IMO 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. The utility of DGTX is its a vehicle for zero-fee futures trading, you must own it to participate in our highly liquid futures markets where you’ll be able to trade very actively short term without getting killed by commissions. Our marketing strategy is already very effective, when we actually have an exchange to create content around and pursue viral marketing techniques we will attract literally millions of traders to our platform.
Q: With so many DGTX being given as giveaways. Aren’t you increasing the chance of a sudden price drop at launch? This could be a bad signal for traders who do not use the peg system.
S: Not really. All giveaway tokens have turnover requirements so you’d have to have traded a fair amount before actually being able to sell them.
Q: How was the integration of the DGTX token in the Atomic Wallet wallet? Are there plans to include AWC in the DIGITEX FUTURES exchange platform?
J: When spot markets go live, projects can apply for listing on Digitex.
Q: I heard that by holding DGTX TOKEN on exchange there is a reward of DiGiDAO TOKEN. Please explain the ROI for this staking process?
R: There is a fixed amount of DGDAO tokens that are going to be airdropped to DGTX holders. Depending on how many DGTX tokens are going to be at stake on time for the airdrop, it will be equally distributed. Staking will be available for everyone who puts tokens onto the exchange or independent smart contract.
Q: What proportion of DGDAO tokens will be given to DGTX tokens?
R: the DGDAO will be evenly distributed between the token holders that lock their tokens, the more tokens that are locked totally, the less you get per token
On Future Plans:
Q: What will you do when you will run out of money? Will the transactions be transparent?
J: We have the treasury, we kept 100 mil tokens aside for treasury to sell with a premium, 10 mils is being unlocked every month until 2021, we are very well funded!
Q: Please let us know about your future plans?
J: We focus on testnet by end of November, the rest will follow, we need a couple of months of testing, we will probably have a roadmap by mainnet launch but we focus now on getting the product out there
Q: So what features can we expect to have in the Testnet of Digitex futures exchange?
A: 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
Q: What are the assets that will go live on the platform if I may ask, please?
S: Perpetual contracts on BTC/USD, ETH/USD, LTC/USD. In the beginning, it will only be BTC however. Then we’ll potentially have the ability to trade futures contracts on a wide variety of traditional assets such as commodities, forex and stock indices. We’ll also have spot markets where you can simply trade crypto to crypto as you would on most exchanges.
Q: In 2021, you will create a new token. How it will be useful and Why have you chosen to create in 2021 why not now. Why have you chosen to create ERC-223 why not Bep or ERC-20? Why Digitex Uses Erlang/OTP Languages why not other languages? How is it beneficial?
A: DGDAO will represent the ownership of the exchange. Right now, there is no use case for this token. That’s why it has been pushed to 2021. ERC 223 is a newer version of ERC tokens. It’s safer in case of sending tokens to the wrong smart contract.
We were glad to host Digitex Futures on our Telegram. Thanks to the team and all the members of the session!