If you’ve checked out any newspapers lately, then you already know that the stock market has had a wild ride in the last few trading sessions – with massive dips making headline news around the world. Sure, some are saying that it looks like a correction, not a crash. But there are also a lot of people out there that have been issuing a starker warning: that a huge stock market crash is on the horizon. When the market goes south, investors often turn to gold – a more stable and secure asset that can protect against a declining dollar. DigixDAO (DGD) is a cryptocurrency that makes investing in gold bullion accessible to regular people, and its price is surging today. Are crypto investors running scared toward gold assets because of the market turmoil?
DigixDAO (DGD) is worth its weight in gold
Like some other rising altcoins, DGD allows its users to actually invest in a tangible physical asset. This coin is one of two cryptocurrencies that are the basis of the Digix Marketplace. There, users can buy both DGD and DGX tokens. DGX coins are what represents the gold you now own. Each DGX token stands in for a gram of 99.9% LBMC-approved gold – and it is safely kept in a vault in Singapore – and it is maintained there indefinitely. Each coin is capped to the value of 1 gram of gold.
That means that you can just go on the marketplace and own a piece of gold, which is a very secure investment compared to maintaining fiat cash during a financial crisis. With this platform, you don’t need to go through a middleman to invest in a gold ETF, either.
The DGD coin, unlike the DGX coin, will go up and down in value along with other cryptocurrency assets – it won’t be tethered to the price of gold.
The Digix coin will soon be more easily traded
Digix just announced a new collaboration with Republic Protocol – which is currently constructing a decentralized dark pool exchange to execute cross-chain atomic trading. While the first coins traded on this exchange will only be BTC, ETH and ERC20 tokens, there will be a DGD component. As they explain in the announcement:
“With this partnership, Republic users will be able to trade these tokens on a hidden order book with DGX tokens, which are redeemable for 1 gram of 99.99% LBMA standard gold per token. This will allow them to hedge against the volatile cryptocurrency markets through a stable store of value such as gold.”
This coin probably has a bright future
Maybe it’s just coincidental timing, but this coin is in a great position at the moment.
The market has been climbing for too long, and a steep drop is probably going to happen in the next year or two – and an ensuing gold panic will likely follow. Will DigixDAO (DGD) be the top gold-based cryptocurrency asset when that time comes?
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.