SWIPE is ecstatic to formally announce our partnership details with Digix Global, an Ethereum-based asset tokenization company. Digix’s gold backed token, DGX, provides a hedge against the volatility of cryptocurrencies. The collaboration aims to establish a more secure and stable data monetization process for SWIPE users.

Introducing Digix

Digix is the gold standard for the tokenization of physical assets on the blockchain. Through the use of its Proof of Provenance protocol, Digix is able to track the custody and legitimacy of a physical asset. Currently, Digix has created 2 tokens: DGX and DGD. DGX is a gold-backed coin where 1 DGX token represents 1 gram of 99.99% LMBA standard gold, stored in secured gold bullion vaults. DGD is the governance token for the DigixDAO. DigixDAO aims to be a self-governing community on the Ethereum blockchain that actively involves its token holders in decision making and shaping the direction of the asset tokenization business. DGD holders participate by submitting proposals and applying grants for projects that build the Digix ecosystem.

Partnership Details

The volatility of cryptocurrencies has shown no signs of slowing, despite growing levels of adoption, reflecting that cryptocurrencies are still a largely speculative asset class. Mass fear or greed would cause large pumps or sell-offs. From a business perspective, it is not ideal to use a volatile currency as a form of payment, due to problems arising from a cost, accounting, and risk perspective.

A boy recently asked his cryptocurrency investing father for a bitcoin for his birthday. His dad exclaimed: “What? $17,778!” “Son, you know that $16,421 is a lot of money for a birthday present! What in the world do you need $18,734 for anyway?”

-A popular joke about Bitcoin’s volatility, posted in Dec 2017. You could repeat this joke half a year on, though you should probably divide all the values by 3 at the time of this writing

Other than the rewards and staking utility of the SWIPE token, the main token use would be as a method of payment for data monetization and data buying through the SWIPE network. Understandably for some of the participants in the SWIPE network, they would not want to be subject to the price volatility of the SWIPE token, especially if there are limited means and/or complications to convert to fiat. This problem is certainly pertinent for users in countries with limited fiat to cryptocurrency on-ramps or strict regulations on cryptocurrency exchanges.

Therefore, Digix and SWIPE are collaborating to introduce a highly accessible hedging solution on SWIPE’s Marketplace SDK. SWIPE’s Marketplace SDK is originally a digital items marketplace, that any app developer with an in-app store can easily integrate to support redemption with SWIPE tokens for DGX tokens, which are ERC20 compatible tokens. This DGX token can be transferred to a user’s own wallet and would enable ownership of gold for users without requiring a centralized intermediary. The price of gold is generally a recognizable store of value. Therefore, DGX is best placed to function as a hedge against the volatility of virtual currencies.

SWIPE’s MVU app, Blockpost launched last month. It demonstrates the capabilities of SWIPE’s SDK, displaying crypto news right to your lockscreen! Check us out at the Google Play store!

Why not offer a direct SWIPE to fiat pairing on your Marketplace SDK? Wouldn’t that be even more stable?

While this is not impossible to implement, it would likely create a lot of unnecessary legal complications, particularly with local banking regulations to deal directly with fiat currency. It would also require SWIPE to manually establish branches and physical presence in every single country that we aim to operate in (and we plan to operate globally!) to transfer money locally. While overseas remittance is possible, it introduces an additional cost layer that cuts into user’s earnings. Most important of all, doing so would lead to a high degree of centralization by the SWIPE company, which is against our company’s ideals as we aspire to build a decentralized ecosystem.

Conclusion

SWIPE’s team photo, with Shaun Djie, Head of Ethereum Meetup Singapore & COO of DigixGlobal

Digix and SWIPE have been very early partners, and the founders of Digix, Shaun Djie, and Kc Chng also sit on SWIPE’s advisory board. The SWIPE team is grateful towards Digix for their continuous support, and we wish them the best in their future project endeavors.

“The Swipe team is bringing data monetisation in a big way to the blockchain space through its innovative platform of engagement and marketplace. Gold itself is well received and understood in Emerging Market communities where Swipe has established a user base and them taking the treasury management approach on hedging funds raised into DGX will help both companies” Shaun Djie, COO of Digix

Discover more about what SWIPE and Digix are trying to achieve below and join them in their telegram community and social media to learn more!

About SWIPE

SWIPE aims to create a network of apps that are able to work together to create valuable data as a collective, instead of relying on centralized intermediaries. As part of the network, all data collected will be aggregated, anonymized and encrypted. It will then be channeled into an analytics engine which packages it to be monetized directly to data buyers in a decentralized data marketplace. This process provides transparency to data buyers as they can trace the origins of the data, creates a fairer way for app developers to monetize data and empowers users by giving them full control and ownership of their data. SWIPE is invested by Kenetic, a blockchain firm that invested in huge blockchain projects like Zilliqa, ICON, and Bluzelle.

About Digix Global

Digix is the leading asset tokenization company on the Ethereum blockchain.

At Digix, the current aim is to tokenize a safe haven asset that sees universal recognition and demand. In bringing this to the cryptocurrency world, they introduce an element of stability and tangible value that can be easily traded and transformed into other utilities.

The journey began in 2014 and the team has accomplished much since then. This includes being the first company to conduct a crowdsale on the Ethereum blockchain where 465,134 ETH was raised in March 2016 — the DigixDAO (DGD, tradable on Binance, Huobi Pro) was born. In April 2018, the company released its first asset token, DGX.

Since launching DGX, the company has accumulated 50,300g of gold in their custodial vaults and minted the same DGX token supply. This has dollar value of more than USD2.1 million at the time of writing. DGX is currently available on decentralised exchanges, directly from the Digix Marketplace, and will be listed on its first centralised exchange pairing in Q3 2018.

More information can found on the company website and regular updates from their various social media channels.

Homepage: swipecrypto.com / digix.global/

Facebook: SWIPE / Digix

Twitter: SWIPE / Digix

Youtube: SWIPE / Digix

Blog: SWIPE / Digix

Telegram: SWIPE / Digix

Github: SWIPE / Digix

Blockpost: https://blockpost.app/