Cryptocurrency investment products are slowly becoming in demand as the market prepares itself for institutional entry. Digitex Futures Exchange is one such platform working towards providing crypto traders with easy access to cryptocurrency futures.
Digitex plans to go live by Q4 2018, allowing traders to trade Bitcoin, Ethereum and Litecoin futures with absolute ZERO commission fees. Furthermore, to establish itself as a highly liquid trading platform, Digitex plans to roll out its own DGTX tokens.
Adopting the Path of Tokenization
DGTX is a native currency of the Digitex Futures Exchange. The DGTX token is compatible with the ERC-223 protocol based on the Ethereum blockchain network. Additionally, to ensure continued demand for DGTX, the exchange mandates carrying all operations using DGTX tokens only.
The exchange will use the DGTX tokens to denominate account balances, trader losses, trader profits, and margin requirements.
Capitalizing the Commission-Free Trading Process
The Digitex Futures Exchange is making a smart choice by adopting the commission-free trading model to attract more traders to its platform. However, the issuance of DGTX tokens will help to cover the costs of futures contracts and daily exchange operations.
More importantly, all the trading processes, i.e. buying/selling of futures contracts, is done through DGTX tokens only. As a result, Digitex is creating more demand for its native tokens by getting them in circulation.
Thus it will create a win-win situation for both – the traders and the exchange. Firstly, the zero-fees model will attract more traders, creating a demand for DGTX tokens. Why would any crypto trader miss the chance of unlimited trading at zero-fees? Secondly, the increased demand will trigger the value of DGTX tokens to surge because of its limited supply in circulation.
A Hybrid and Customized Model for Speed and Security
To provide traders with a hassle-free trading experience, Digitex provides a hybrid trading platform. It merges the speed of a centralized server as well as the security of a decentralized blockchain network. This hybrid model brings a plethora of benefits to the table.
Indeed, these includes features like a centralized server facilitating traders with real-time calls on trades through sophisticated trading tools and strategies.
Certainly, the decentralized blockchain will provide security by preventing bad actors from injecting fake data. Furthermore, it also helps to make the network scalable to deal with high-volume trading. The blockchain also allows the use of smart contracts to mitigate chances of human intervention and manipulation.
Seamless Trading Experience with Digitex
Importantly, the Digitex Futures Exchange will also make use of programmed automated bots to increase and break even the liquidity. The bots are already sourced with 200 million tokens to stabilize the supply and demand of orders.
Furthermore, Digitex’s enhanced user-interface facilitates traders with one-click trade calls in real time. To bring more liquidity to the market, the exchange is working on more trading and platform enhancement strategies, making the entire trading experience a lot more lucrative.
Digitex CEO, Adam Todd, will show a demo of the platform live, at the Malta Blockchain Summit 2018. The expectation is for the futures platform to go live before the year-end.
Risk Disclosure
This article should not be taken as, and is not intended to provide, investment advice. Users are ultimately responsible for the investment decisions he/she/it makes based on this information. It is your responsibility to review, analyze and verify any content/information before relying on them. Trading is a highly risky activity. Do consult your financial adviser before making any decision. Please conduct your thorough research before investing in any cryptocurrency and read our full disclaimer.
