Cryptocurrencies continue to be the hot new topic of the finance world as more and more people, from big corporations to cautious investors, try to get wind of this phenomenon. While recreational investors have actively invested in cryptocurrencies, more cautious investors are still testing the waters. After all, cryptocurrencies are known for their volatile and risky nature.
But all that might change soon as Kent Swig will bring forth his very own token — DIGau. DIGau is a crypto token by Dignity Gold and is gold-backed. This means that these tokens will be priced at the value of gold.
This in itself will change the whole game of cryptocurrencies, and with that, it is obvious to assume that Kent Swig might as well have hit the jackpot. Let us take a deeper look into what DIGau is and how Kent Swig turned the whole thing around.
How did DIGau come to be?
His interest in cryptocurrency and the idea of DIGau first came to Kent Swig when his teenage son explained the concept of cryptocurrency to him. Owner of Brown Harris Steven (a realty firm), and a real estate investor of the third generation, Kent Swig immediately took an interest in the concept of e-currency. He learned about the so-called stable coins, which are a type of cryptocurrency; only these could be pegged to a physical asset such as the US dollar or gold.
When you peg a cryptocurrency to such an external reference, you are essentially filtering out the uncertainty that cryptocurrencies are known for. Pegging it to a physical asset makes it’s worth the same as the asset, thus bringing down the risk factor drastically.
Kent Swig and his partners saw an opportunity in these tokens and thought of pegging it to the price of gold. Gold-backed cryptocurrencies do already exist, such as Tether Gold, but the presence is not prominent. However, the interest in both gold and cryptocurrency lingers, and Swig and his partners saw an opportunity here.
However, the catch here is that Swig and Braverman’s token — DIGau — must always hold the worth of their reserve, as they are the coin issuers. This is to assure the investors that when the price declines beyond the authorized currency, there is a backstop.
Therefore, Swig and Braverman’s token has $6 billion in the form of gold reserves as the backing for DIGau. According to Swig, accumulating that amount of gold reserves took him 18 months of gold hunting around the globe. He added that having the gold reserve deposited in the US adds more transparency and credibility to the cryptocurrency.
Dignity Gold, the parent organization of DIGau’s issuer, has been able to acquire a forward purchase agreement for the gold being produced by mines in Nevada, Arizona, Lincoln County, and Mohave County. They also have the security and the pledge agreement.
Other than that, there are a few other reasons why DIGau is a unique token, according to Swig:
- It is a US-based crypto asset that pays the dividend to individuals who own hold the token
- Issuing of tokens will be according to the regulatory processes of authorized bodies such as the Financial Industry Regulatory Authorities and more.
The future
Cryptocurrencies have always been the talk of the finance market, but only a few could take the risk of investing in them. These few include recreational investors and big corporations. Due to their highly volatile and risky natures, cryptocurrencies have always been observed by the general mass rather than risk investing in.
However, with the introduction of such properly regulated gold-backed cryptocurrencies as the DIGau token, things will turn for the best. This in itself will give confidence to cautious investors to finally invest in cryptocurrencies without fearing the sudden rise and drop.
Conclusion
With DIGau tokens, Kent Swig might as well have hit off the jackpot because such gold-backed cryptocurrencies are way safer and stable than the general cryptos. With the transparent and trustworthy build-up of the gold-backed currency — not to forget the $6 billion gold reserve backing it — DIGau theoretically provides more stability and might as well be the key to opening cryptocurrency investment to average and cautious investors.
You may be interested in: What is Gold-Backed Cryptocurrency?