Following Friday’s massively successful launch event on YouTube, we are sad to say that the success of the event has been overshadowed. The actions of one manipulative whale have resulted in a significant drop to the value of DGTX. Today’s post will examine the events that have unfolded since July 31 and the actions that Digitex is taking to solve these issues.
In the most painful way possible, it has come to our attention that one or more whales are using the Digitex Treasury as a way to manipulate the price of DGTX. On Friday, a substantial sell order on KuCoin put huge downward pressure on DGTX, causing other holders to panic-sell as a result.
After the price had tanked, we believe the same person bought back the entire Treasury balance of 2.5 million DGTX at the knockdown price. There is no explanation for this, other than that the whale who placed the order timed them in such a way as to cause maximum damage to Digitex and our holders, on the day of the public launch.
The price is still struggling to recover, and we are sorry to say that the upward momentum we had before this happened has been lost. Friday’s event, which attracted overwhelmingly positive reviews of the DFE by so many well-known figureheads, has been overshadowed by this manipulation.
As ever, Digitex, led by Adam, refuses to be beaten. We’ve spent the weekend figuring out how to ensure that this can’t happen again.
Introducing the DGTX Converter
The DGTX Converter will replace the Digitex Treasury token sale smart contract.
The DGTX Converter allows users on DFE to deposit ETH, USDC, USDT, BTC, and other cryptos into the Digitex Futures exchange and then convert them instantly into DGTX, with no commissions on the transaction.
The DGTX Converter has several benefits over Digitex Treasury:
- New users are more easily onboarded onto DFE because they can deposit a variety of different cryptocurrencies instead of just ETH.
- As a closed system, users can no longer see how many DGTX tokens are available to buy, which makes price manipulation of DGTX a much riskier endeavor. This lack of visibility makes any attempt at manipulation a much riskier prospect because nobody can be certain they can buy back enough DGTX at a lower price to make the manipulation worthwhile and free of risk.
- Users must be logged into their DFE account to use the DGTX Converter, and they must send their cryptocurrency payment directly to the exchange. After the deposit has been confirmed the user can then convert some or all of it into DGTX at an exchange rate slightly above the CoinMarketCap rate, which is then deposited into the user’s Main Account. If we see manipulation, we can adjust the price of DGTX accordingly. This makes it much more unlikely that any attempt at manipulation will have a successful outcome for the attacker.
- The DGTX Converter user interface and overall user experience are easier to understand for new DFE users than having to figure out how to send ETH to the Digitex Treasury smart contract.
- The features listed here mean that the DGTX Converter is only attractive to smaller buyers who are interested in onboarding onto the DFE to place trades and add liquidity. It isn’t appealing to whales.
- Users can send in their cryptocurrency payment from any wallet, including exchange wallets, without risking losing their DGTX. This feature represents an improvement to the Digitex Treasury smart contract, where a user risks losing their DGTX if they send in ETH from an unsupported exchange.
The developers are currently working hard on implementing the DGTX Converter functionality, and we anticipate it will be live as soon as next week. Here are a few screenshots of what we’re working on.
In the meantime, the Treasury supply won’t be replenished, and we won’t be selling any DGTX via the Treasury smart contract.
Community Member Driving Sell Pressure
To further compound the manipulation issue explained above, we also discovered that one of the Digitex community, John from WhyLose, has been putting out trade signals to sell DGTX once the price went below $0.10 and buy back at a lower price.
We’d like to clarify that these actions were never endorsed by Adam or any of the Digitex team. Of his own volition and with no direction from the company, John had introduced the Digitex University last year. As we assumed his intentions were positive, we had allowed this and even onboarded him as one of our first 20 traders to help promote the DFE.
However, in light of his actions, we are no longer supporting any of his efforts regarding the Digitex University. John has been removed from the Digitex Telegram groups. We at Digitex own the Digitex University domain, and in the future, it will only be used to promote the company and our brand.
Liquidation Losses Revert to Insurance Fund
Finally, we are aware that Adam’s blog post on Thursday regarding refunding liquidation losses that have been put into the insurance fund was overwhelmingly unpopular among many members of the community.
Therefore, in response to the feedback, we have made a straightforward decision to revert back to the previous arrangements. In the meantime, we will continue to work on finding an agreeable alternative solution for liquidation losses that lands better with the community.
We have shared a lot of information in today’s post, and we realize there will be many questions. Therefore, Adam will join the mainnet traders Telegram channel shortly after this post is published, to answer as many questions as he can.
Digitex is Emerging Bigger and Stronger
We know that the result of Friday’s price manipulation has understandably caused a lot of unrest in the community. However, we believe that the actions outlined above will put in place everything needed to avoid this issue happening again in the future. Furthermore, we’d like to highlight that many of our community members have continued to HODL and maintain their belief in the DFE and the Digitex vision.
We are grateful for the continued support of our loyal community. Those who have been holding DGTX in the long term are already as tough as nails, and we know that this is just another hurdle on our path to becoming one of the biggest brands in crypto. If anything, this is another great opportunity to buy DGTX at knockdown prices.
Anyone in doubt only needs to listen to the ringing endorsements from some of crypto’s best-known influencers who joined us on YouTube on Friday.
By continuing to onboard new users and drive more demand for DGTX, we can and will rebuild the previous upward pressure, returning value to our token holders. After spending the last few days wrangling with these difficult issues, we will be pleased to spend the rest of the week recapping on the strong fundamentals of Digitex as a company, a brand, and a token, along with the positive efforts during our launch event to achieve these goals.