INTRODUCTION
There have been tremendous adjustment in the financial sector with the way transactions are done especially in blockchain technology. This has made it possible for people to be in full control of their money through decentralized blockchain technology which are not prevalent in centralized systems. However, when cryptocurrency futures trading becomes the focus, decentralized systems alone can’t be efficient. This is because there is a need for more than just secure and quick transaction mechanisms. Futures was created in the financial world to arrest volatility, especially, in commodities or products usually having a prominent surge or dip in prices. The buyer of a future contract has the obligation to purchase the corresponding asset (stocks, commodities, etc.) on the due date, and the seller of that future contract has the obligation to deliver the asset to the buyer in said future due date.
For instance, a Fisher man who catch fish and a company that specializes in production of canned fishes can enter into a future trading agreement on the price to be paid for the fish even before the fish is caught by the Fisher man. In other words, the price of the fish covered by that agreement remains the same even if the price of the fish generally changes making the prices of canned fish relatively stable.
But futures has always encounter a major challenge which is transaction fees or commission fees. Futures exchanges serves as a medium for buyers and sellers to create future contract. These future exchanges are like the middle agent linking the buyer and the seller. Since, this middle men are not charitable organization, operational cost of every transaction is incurred. These transaction fees are usually a stated percentage of the total amount being traded. When the volume of trade is small, the fees can be insignificant, but when they are large, the fess become large. These large fees are deducted even before the trader begins to make profits, meaning that these traders are in loss right from the beginning of the trade. Hence, for the traders to truly make profits, they have to make gains over and above the transaction fees. These transaction-fees are a great turnoff for traders as they either reduce their profits or entirely result to losses in their marginally profitable trading strategies.
Once transaction fees can be removed from the Futures market, then traders can be free to engage seamlessly in the Futures market. This is exactly what the Digitex plans to achieve.
DIGITEX
Digitex presents a commission-free futures exchange that covers operational costs by minting its own native currency, the DGTX token, instead of charging transaction fees on trades.
Digitex is a brand new revolutionary cryptocurrency futures exchange that is redefining and reinventing the way futures contracts are being traded. Digitex is a marketplace for buying and selling digital currency futures with zero transaction fees attached and complete control of funds provided via decentralized accounts.
DIGITEX TOKEN
This is an ERC-223 compatible protocol token, and it is based on the ethereum blockchain. Total supply of DGTX will be 1 billion tokens. 100m will be reserved for the founding team, in the form of vests (3 years schedule). 200m will be reserved by market makers. This means that only 700m will be available during the ICO. No new tokens will be minted within the first two years, because its ICO will be able to sustain Digitex’s activities within this period. Operators in Digitex use decentralized governance by Blockchain to determine how many new DGTX tokens to issue and the amount, this means that it is not a commission of the platform that decides how many tokens need annual to maintain the platform, this important issue does not fall on a person or a group of people that could damage the economy of Digitex, there is the perfect solution to protect the economy of the platform!!
DGTX FEATUTES
• Zero Trading Fees:
• Complete Privacy:
• Decentralized Account Balances
• Token Issuance Revenue Model
• Large Tick Sizes
• High Leverage
• No Auto Deleveraging
• Automated Market Makers
• Off-Chain Price Discovery, On-Chain Settlement:
• One Click Ladder Trading Interface:
• Bitcoin, Ethereum & Litecoin Futures
• Sub-Millisecond Order Matching:
Advantages of DGTX to other cryptocurrencies
- Inflation due to the generation of new tokens are counterbalanced by the demand for these tokens since, traders require DGTX tokens (in the form of “initial margin requirement”) to engage in the trustless, commission free futures market.
- Digitex also harnesses other applications of the blockchain technology aside smart contracts like its autonomous governing for new tokens issuance and its trustless security for handling funds.
- Digitex has developed a strategy that can enable them operate a commission free trading platform, where traders can conduct trades at absolutely zero-fees. This strategy uses minting of new DGTX tokens to cater operational costs. This will encourage more traders to join the platform, hence increasing the liquidity of the platform and also the value of DGTX tokens.
- With the use of DGTX through the decentralized ethereum based wallets, Traders have the private keys to there wallet and can personally store their DGTX tokens in decentralized ERC-223 wallets stored on the Ethereum blockchain, away from the Digitex exchange.
- Digitex makes use of the combination of centralized components and decentralized components to ensure effective and efficient service.
- Digitex uses its smart contracts to guarantee that counterparties meet their ends of agreement regardless of the unprecedented conditions, therefore eliminating unfair management.
Digitex versus Existing Exchanges
There are existing cryptocurrency futures exchange platforms that charge commissions for any transactions done through them. This reduces the profit margin of futures traders. Digitex hopes to attract futures traders by using the fee-less trading model as its biggest selling point. An innocent-looking futures contract fee can reduce or entirely remove the profits made by a futures trader. The table below shows that futures traders will make more profits if the trade on Digitex than on Kraken or BitMex:
Use case scenario
David was newly introduced to cryptocurrency and he bought some bitcoin but unfortunately he had to stop because of the high commission he stands to pay, especially when dealing with little transaction. Out of frustration, he took a break.
Lately, a friend who stays in Vegas did business with David in Nigeria. When it was time for payment he wanted it to be in bitcoin because he didn't want to pass through the same challenges he passed last time just to get his own money through the bank since it's a very large amount. On the other hand, David didn't want to use future exchange because of the high commission he stands to pay. So, his friend introduced him to a revolutionary Futures Exchange, where ALL THE TRADES ARE COMMISSION-FREE because of the new brand business model leveraged on their own native token DGTX. David became interested in knowing the intricacies of DGTX platform. When he finally paid in bitcoin and notice he didn't pay any commission fee, he resumed fully to cryptocurrencies and also invested in DGTX.
Summary
Digitex Futures Exchange, is a revolutionary exchange that removes transaction fees and uses DGTX token, to perform trading. This will create a high liquidity in the futures market by attracting a large number of traders, allowing them to obtain all the profit they obtain in their trading operations without charging any type of commission. However, this is not the only advantage that Digitex offers; its trustless nature allows traders to keep their money, preventing the exchange from controlling the funds of the participants.
Teams
MORE INFORMATION
Digitex Website
Digitex WhitePaper
Digitex Blog
Digitex Telegram
Digitex Reddit
Digitex Facebook
Digitex Twitter
Digitex YouTube
Entry to @originalworks contest which can bee seen here
DIGITEX2018
DIGITEXLINK
https://mobile.twitter.com/SbamsonTammy/status/1042209353443553280
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