CCEDK’s OpenLedger Exchange Adds Ethereum-Based, Gold Backed Token DigixDAO
OpenLedger, a decentralized exchange by Danish exchange operator CCEDK, now allows users to trade DigixDAO (DGD) assets on its platform.
The DigixDAO cryptocurrency protocol is used for trading DigixGlobal’s gold backed digital tokens (DGX) on the Ethereum platform. The gold backed digital token is a gold standard of cryptocurrency where the value of each DGX is hedged against a specific amount of real gold stored in the company’s reserve. The DGD asset addition to OpenLedger enables the transaction of digital gold tokens over DigixDAO.
The digital gold asset is currently available for purchase with Ethers only. All sales are registered as Ethereum smart contracts, recording the value, transactions and other information on the Ethereum blockchain. The DGD assets are similar to shares and are held by members who have contributed to the DigixDAO platform. They are entitled to receive a portion of the proceeds made by the platform through DGX sales and transaction fees.
Once DGD coins are released April 29th (00.00 UCT 2016), the same IOU asset currently trading during pre-launch will become “freely transferrable and withdrawable.” Users will also be able to make DGD deposits to OpenLedger at that time.
Each DGX is equivalent to 1 gram of gold and its value at any time is same as that of the equivalent amount of yellow metal at any given time. DGX is highly divisible, allowing people to buy and transact as less as one-thousandth of a gram of gold, which is priced at around $0.04. The platform charges a transaction fee of 0.13% per transaction, with a cap of 1 DGX per transaction. DGX holders can also redeem their digital gold token on the Digix platform for the equivalent in gold.
DigixGlobal’s co-founder and Director of Business Development Shaun Djie explains:
“Gold has been one of the better-performing commodities since the start of this year, albeit with a volatile range-bound trading range. Extrapolating it over a longer period of time, the stability of gold as a hedge against geopolitical and economic risks is undisputed.”
Though DigixGlobal is initially making use of the OpenLedger’s Ethereum assets listing feature to offer its DGD assets, it eventually intends to list DGX, the digital gold tokens on OpenLedger.
OpenLedger is a decentralized cryptocurrency exchange based on BitShares 2.0 MIT licensed Graphene blockchain technology. The platform allows users to trade various existing cryptocurrencies and also offers an option to create their own digital assets utilizing BitShares technology. At the same time, OpenLedger is offering a platform to list such Ethereum based assets for trading. Most of the Ether used by DigixDAO, over which DGD is created is ultimately owned by the investors who contributed Ether during DGD crowd sale. The Ether ‘investment’, resulting in DGD and the digital gold tokens (DGX) are all registered and governed by smart contracts recorded on the blockchain. DGD bought over OpenLedger can be transferred to the buyer’s Ethereum wallets.