Thanks a lot for actively participating in the Digitex Futures AMA held on 9th February 2020 at the Game of Bitcoins Channel. We really appreciate all your support. This post is a recap of the entire session held with Digitex Futures
We have with us Adam Todd, Founder of CEO of Digitex Futures
Gary - It's an absolute pleasure to have you with us. Never really though that I will be hosting you one day.. when I invested in the very First ICO
which was sold out in 17 minutes.. still remember that 😄
Adam - yes I remember that I couldn't believe it. I kept refreshing the etherscan page and could not believe what was happening
Gary - Absolutely, what a journey it has been and am so glad that Digitex has really come out even stronger from the setbacks
Adam - thanks, yes it was a lot harder than I thought it would be but the struggle made us stronger.
like when a butterfly emerges from a cocoon, its the struggle that makes it strong enough to survive
and I'm so so grateful for loyal supporters like yourself that forgave my mistakes and stuck with me, I wont let you down
Gary - Really loved the project when I first read about the concept and we truly believe in you, Adam 🙂
Q1. How would the company generate money to finance its activities in the future for the sustainability of Digitex Exchange?
As stated in the whitepaper the revenue model of Digitex is token minting instead of charging transaction fees on trades.
The advantages of this are that the most active traders are not penalized by fees related to their activity.
This allows them to pursue very very active trading strategies that are noit viable on other fee charging exchanges, creating very liquid markets.
Traders are attracted to liquid, zero-fee markets which in turn creates demand for the token which offsets the small inflationary cost of minting tokens.
Whether you charge transaction fees or mint tokens the costs must come from somewhere, this is just a different, better way of sustaining an exchange and the number of tokens that will be minted is decided by the community by vote
and as the token price rises, fewer tokens must be minted
Q2. What happens if the insurance fund cannot keep up with the losses of market creators?
Well the biggest problem with high leverage futures trading is what happens when one counterparty runs out of money in a big market move
there are two ways to fix this
the insurance fund steps in when this happens but in the unlikely event the insurance fund runs out of money there are 2 things you can do
we can mint more tokens or deleverage the winning side
both are very unattractive propositions
its better for the exchange to manage risk properly in the first place to prevent the insurance fund running out of money.
other exchanges do deleveraging or socialised losses.
but like I said, we need to make sure that happens very rarely
Q3. Will it be possible to set orders with 1 Dollar tick size or even 50 cents or it will be 5 dollars as with the ladder currently?
on mainnet launch there will only be the $5 tick size market
we may introduce smaller tick size markets in the future but there are currently no plans
I prefer the $5 tick size for the ladder trading interface because it prevents the price from constantly flying off the top and bottom of the page and is nicer to trade
the market is more stable with more liquid bids and offers with the higher tick size of $5
Gary - btw, talking about the Ladder Trading Interface.. am absolutely loving it.. One of the best and easy to use UI I have experienced
yes I love it too, I'm so happy with how it turned out
and we have a new improved UI coming out very soon, its still the same ladder
its so easy to use and you can really get in the zone when trading because the price is literally moving up and down in front of you and you can jump on in and out so quickly without having to worry about commission fees
Gary - yea, and I love the fact that it is 1 Click
yes one click is essential
you can place trades without any mouse movement or without taking your eyes from the price action
and on mobile its totally awesome too
holding your phone in your hand placing buy and sell orders with a thumb click is amazing
mobile UI coming out on testnet before mainnet launch
Q4. Is DGDAO still in the plans? When fee free spot market opens will there be a need to stake a set amount of $DGTX to access it or will anyone be able to use it?
There are a lot of problems with launching a separate token that is definitely a security token that represents equity ownership of something
we're still trying to figure it out but the lawyers hate the idea and I currently don't see a solution
the plan is to get the mainnet launched and show that we have a real product and lots of users and the exchange has value and then we can address these regulatory issues more clearly
Gary - Really hoping something works out!
yes me too
Q5. Will Smartdec continue to provide support after mainnet launch?
Smartdec have been essential in this dev process and they will continue to build new features and maintain the current ones for many years to come
As you know I tried 2 other dev teams before them and we had delayed launch and Smartdec really are so much better than anyone else, they are very very good
I'm now living in Moscow working with them directly, I have an office in their office and I am an active member of the development team now
this results in much better communication and a better product
the testnet they have produced is very good quality, the backend matching engine is very high quality as you can see from the billions of contracts being matched everyday, the other day we did 11 billion traded contracts in 24 hours
its only testnet play money but it displays that we are technically ready to blow up
Gary - Absolutely agree with that and I feel the 2 previous launch failures have in fact turned out to be a blessing in disguise by getting Smartdec on board
right I agree
I just wish I had started with Smartdec from the ICO
Q6. What is the DIGITEX TREASURY? Can you share your experience and journey with the DIGITEX project?
What is the biggest achievement you are most proud of?
The Digitex Treasury is the mechanism that holds some DGTX that we sell gradually to fund ongoing operations. You can buy DGTX from the Treasury without needing to use an exchange and without paying any commissions in a trustless, instant transaction with a smart contract
Q7. Protection against security breaches and attacks is highly essential for Trading Platforms/ exchanges. Can you please tell us how secure Digitex exchange is for Traders?
SmartDec who have developed the exchange are actually a code security company first and foremost, their main business is analysing code for vulnerabilities and fixing them. So I'm in the best possible hands when it comes to security because this is very very important
Q8. Main problem while using any Futures Trading Platform is Stability of platform when Huge Fluctuation is happened in Bitcoin's Price! Where orders are not placing due to lags ! So, How Digitex Solve this problems from its Futures Exchange?
We're currently running our Trading Battle competition which is designed to incentivise people to do massive volume through our platform ahead of the mainnet launch. Basically we're paying people to stress test our platform so that we can iron out as many of those bugs as possible that are related to spikes in usage. We'll continue testing and debugging and hopefully we can minimize the effect
The main use case of the DGTX token is its utility as a vehicle through which you can trade futures without any transaction costs at all
Q9. I'm new in Trading, So, can you tell that What is meant by Futures trading of Digitex Exchange ? Is it as same as Binance exchange Trading for buy & sell coins or different one ?
If different, then what's the difference between Digitex & Binance tradings ? & What's the benefits of Digitex Futures Trading?
The main difference between trading futures on Digitex or on Binance is that Binance charges percentage based fees that make it impossible to trade very short term and very actively. You can pursue trading strategies on Digitex that are not viable on Binance or Bitmex because you will get killed by trading fees
Q10. What is the role of DGTX tokens, what range of utilities will it have?
What is the gamma of markets that you plan to cover? Will there be some commodities, bonds, which ones?
Initially we are launching with Bitcoin futures while we test the matching engine and push the maximum possible volume through our matching engine but soon after launch we will be introducing many more futures markets based on other cryptocurrencies, commodities, stocks, forex. The commission free aspect of this will be a massive attraction to short term scalpers who currently cannot access those types of markets with such short term active strategies
+Low fee rate
Why should users prefer Digitex if they are satisfied with CEX A? What does Digitex offer more advantageous than CEXs?
You say Low Fee Rate as if thats ok because it is low, but even the tiniest edge working against you will build up to unsustainable levels if you trade enough volume, making certain trading strategies impossible. Low fee rate does not compare with zero fee rate, no matter how low the fee is
Q12. I am a bitmex trader, and daily I face the issue of order submission error do you have already measured these type of bugs in testnet? So I will plan to switch to digitex?
Bitmex is a very busy exchange but it is plagued by slow order submission, an ugly UI that is cumbersome to use and high fees that make it impossible to make money as a short term trader. We are working hard to get our platform as robust and bullet proof as possible and if you watch the level of activity that is going through our ladder UI you will see we are making good progress
Q13. What is your long-term vision about the industry which DGTX is working at? Are you afraid some day there will be another project with more innovative technology can replace DGTX?
My long term vision for Digitex is a high volume exchange with millions of users. We are not afraid of competition because that is often what pushes you forward and forces you to create an outstanding product
Q14. How will DGTX attract traders to participate in trading on DGTX? Can you briefly tell about some previous/upcoming trading competition on your exchange?
For the testnet version of the exchange we are running a trading battle competition now that incentivizes people to do high volume trading so we can properly stress test our system. Its difficult to keep people interested in a testnet because its not real money so we're giving away 60,000 DGTX everyday in prizes. When we launch mainnet there will be other programs and refer a friend programs and market maker rebate schemes that will attract users. I want to hit a target of 1000 new signups per day in 2020 when we launch mainnet
Q15. What is the main mission of Digitex? What is future roadmap of Digitex?
The main mission of Digitex is to create something that I always wished existed when I was trading full time: an exchange that is not run by its stakeholders to maximize profit from its users but instead a place where everyone has the chance of becoming a winning trader because there is absolutely no edge working against you. I want to create a place where millions of traders meet and where a good percentage of them actually make a good living from trading because they are disciplined and smart. Earning a living as a successful trader is an amazing blessing and I want as many people as possible to experience the charmed life that I have lived with financial freedom and the freedom to live wherever you want and work whatever hours you want to work without a boss
Q16. What are the main goal that Digitex wants to achieve in 2020?
Main goals for 2020 are to launch the mainnet futures exchange, introduce more markets, launch the spot market and the social platform and grow to 200,000 users before the end of the year
Q17. What role do you think DIGITEX will play in making Cryptocurrency highly adaptable in the worldwide stage?
I hope DGTX plays a major role in mass adoption of cryptocurrencies throughout the world. My dream is to have a hugely active marketplace where millions of traders interact with each other and the DGTX token becomes a top 20 coin that is actually used by real people in their daily lives
Q18. My question is about convenience,diversity and simplicity
Would digitex get an APP
Would it have mutli language support
Will it support fiat gateway?
There will be a mobile app with multi language support but I dont know if we will ever have fiat support
Q19. Your metamorphosis is a laudable one, how have you been able to survive this longest bear market and continue building and developing cos many projects have died out in this time period
Thanks :) I would say sheer determination to succeed was our main quality, its been a very difficult market but I have wanted to create something like this my whole life and I refuse to quit until I have succeeded
Q20. Do you think that Digitex ecosystem is safe/secure enough? Which security measures were taken? Have you ever been or will you be tested for security, scalability, data privacy issues?
Security is massively important, SmartDec are predominantly a code security audit firm so we are in the best hands possible. Before mainnet launch we have scheduled a thorough audit of the entire codebase to ensure maximum security
Q21. Among different blockchains and cryptocurrency projects, what are some key features that set DIGITEX aside? What does DIGITEX have that other projects don’t?
Digitex has me, it has an awesome team, a supportive community and it has SmartDec. 90% of ICOs from our time have gone already, we made it this far and we will continue to thrive and adapt :)
Q22. What are the competitive advantages of Digitex Futures Exchange where already many Futures platforms are now available like Binance Futures, etc?
Our main competitive advantage is zero fee trading on a one click trading ladder. Even if trading fees are low they still have a massive effect on your bottom line if you are an active short term trader, so Digitex will always attract the most active traders and as a result will have very liquid markets. Liquidity begets liquidity and traders must own the DGTX token to participate