Ever since cryptocurrencies came into existence, it has consistently been the talk of the finance industry. While some had excitedly plunged into the trend, others had stayed back and observed the situation. Yet, cryptocurrency is a fairly new topic to the general world that everyone has heard of, but no one knows anything specific about it.
The one thing that people do know is that it is highly volatile and open to high risks. Market history has stood a witness to that belief where cryptocurrencies have been seen to hit the highest records, only to plunge soon after.
However, that case might change with the new advancements in the cryptocurrency scene. One such advancement is the gold-backed cryptocurrency launched by Dignity Gold — DIGau. To add to the good news, Dignity Gold has reportedly minted 3 billion tokens. Let us learn a bit more about it in this article.
What is DIGau?
Formed by Kent Swig and Stephen Braverman in 2019, Dignity Gold recently announced the launch of DIGau, their very own gold-backed cryptocurrency, with the backing of a $6 billion gold reserve.
To understand this statement, let us first understand what a gold-backed cryptocurrency is. This kind of cryptocurrency is a type of stable coin which can be pegged to any physical asset such as, in this case, gold. Therefore, gold-backed cryptocurrencies are digital assets that have an underwritten value equivalent to the price of gold.
Because cryptocurrencies are so volatile and open to financial and cyber risks, very few investors were willing to invest in them. However, with cryptocurrencies such as DIGau forming, the stakes are much more stable.
Though there were gold-backed cryptocurrencies before, such as Tether Gold, they were not transparent and did not have any steadfast guarantee. However, things seem to be different with Dignity Gold.
In fact, it can also be stated that Dignity Gold may as well have started a new page in the advancement of cryptocurrencies, and their minting of 3 billion tokens simply consolidates the fact.
What makes DIGau so important?
As mentioned before, cryptocurrencies are highly volatile and risky. Therefore, investors were always warned to invest in them wisely. Investors were advised to invest only so much that they could afford to lose.
Therefore, there was always a point of interest for recreational investors. But for cautious and average investors, cryptocurrencies were too big of a risk. However, with DIGau, the matter is different.
The reason is, DIGau shows a lot of promise and safety than the other gold-backed cryptocurrencies. That is because:
- It is backed by a $6 billion gold reserve.
- Its issuing regulations are according to major law bodies such as the Financial Industry Regulatory Authorities.
- All the gold reserves are deposited in the US to provide transparency and build trust.
- It pays dividends to token-holders.
Now that Dignity Gold has officially announced the minting of 3 billion tokens, it adds to the truth of the matter, thus, making it a colossal move in the field of cryptocurrencies.
How will it affect investor behavior?
Next up, let us talk about how it will affect investor behavior in the market. Earlier, due to the uncertainty of the currency, not many would have the confidence to invest in them. However, with the launch of DIGau, the uncertainty of cryptocurrencies has now become more stable.
This may be a great opportunity for more and more investors to come into the scene. What average and cautious investors could not do before, after this, will be encouraged to come forth and invest.
Other major advancements such as cryptocurrency regulation, ETF approval, and big investments by big corporations are also adding up to the scene. All these factors are contributing to the growing popularity of cryptocurrencies. Therefore, this will help the market open up to cryptocurrency and generalize it more.
So, that is the kind of after effect that DIGau tokens are having. With the minting of 3 billion tokens, the matter will strengthen into a step that helps grow the future of cryptocurrencies. With this, more and more investors will be willing to invest in cryptocurrencies. As such, cryptocurrencies are expected to grow more and more popular, both among people and in their worth.
Disclaimer: This content does not necessarily represent the views of IWB.