Recap AMA on the Digitex Public Testnet Launch  1

Recap AMA on the Digitex Public Testnet Launch 

Digitex Futures
• Christina Comben
August 29, 2019

Last week, we announced that Digitex Futures will launch our public testnet starting 30th November. So far, the announcement has been met with mixed reactions, but our CEO Adam Todd has never been one to shy away from our supporters. In this AMA, he candidly takes on all your questions about the launch and more.

AMA – The Digitex Public Testnet Launch

Adam opens the video by recapping last week’s launch announcement and openly expressing his surprise that the announcement wasn’t received more bullishly. He admits he misread the perception and hadn’t realized people think November is so far away. He highlights that since April, there has been a vast amount of development progress and November is closer than it may seem. 
From this brief introduction, Adam goes straight into your questions. Let’s take a look at them one at a time. 

Q: Does the BTCUSD perpetual contract market as an initial offering indicate a shift away from traditional futures to perpetual contracts? 

Yes, it does. We’ve been looking into other exchanges like BitMEX, and have sought feedback from experts in the market. As a result, we believe that perpetual swaps are more appealing to retail traders. They’re simpler to understand, with no expiry date. With an eight hour funding period, the swap price doesn’t get that far out from the spot price. 
With a futures contract that may not expire for another month, there’s a premium because the spot price is further away from the contract price. Also, at settlement, there’s a need to settle the old contract and then open a new contract. Perpetual swap futures are the way forward for attracting retail traders and therefore, ensuring volume. 

Q: Will traditional futures with an expiry date be an option, or will Digitex focus mostly on perpetuals? 

We plan to focus mostly on perpetuals. The more markets and products that we offer, the more we’ll end up breaking up liquidity between different offerings. We don’t want to be the Amazon of futures exchanges. So yes, we are going for fewer strong markets to consolidate liquidity rather than offer hundreds of different products.

Q: What are the specifications of the perpetual swap contracts? 

It will be a dollar’s worth of DGTX tokens. The contract specifications will be the same as the other exchanges like BitMEX or Bybit. There’s a simple reason for this – we want traders from those exchanges to come over to Digitex and therefore, it has to be an easy switch. 
Along with manual traders, we expect there will also be many bot traders. We don’t want bot traders to have to reprogram everything for a new set of contract specifications. Bot traders will be able to come over to our exchange easily, using their existing configuration. Having the same contract specifications as other exchanges will also encourage arbitrageurs between exchanges. 

Q: Any further information on the peg system? 

To explain, the Digitex peg system is just another futures market for the price of DGTX against ETH, BTC or USD. It offers a means of hedging the price of your DGTX while you’re holding it so you can trade on our futures exchange. It locks in the price of DGTX. As you’re holding DGTX, you could sell a futures contract for your holdings on the Digitex peg system so if the price goes down, you may lose money on your trades but you’ll gain money on the peg system futures short positions. The same applies vice versa. 
It will be tailored to the perpetual swaps, so a dollar’s worth of DGTX. It will likely be a perpetual swap specification, but we still have to determine all the specs together with SmartDec. Watch this space.

Q: Will there be an API at full launch or even at the test stage? 

This is really a development question so it depends on SmartDec. For the testnet, however, there won’t be an API.  

Q: For the testnet launch, SmartDec’s announcement stated the platform will support 10,000 users. Does this mean only 10,000 users can use the platform? 

Yes, for as long the testnet lasts, there will be a maximum of 10,000 users. We don’t yet know how long the testing will run. It depends on SmartDec as a development-led decision. 

Q: Given that you plan to be non-custodial long-term, does this mean that BTC, EOS, TRON, etc won’t be listed on the spot markets?

Not necessarily, no. We won’t offer a spot market without Bitcoin, it doesn’t make any sense. This may mean we won’t offer BTC spot markets with non-custodial accounts. Maybe in the future it will be possible to offer non-custodial accounts with BTC based on a Bitcoin smart contract layer like RSK. However, this isn’t something we’re actively investigating right now.
As things stand, we want to offer BTC on spot markets, even if it’s on a custodial basis. But spot markets will only be part of our roadmap once we’ve launched. Once we do launch, we’ll work with SmartDec to determine how and when we can develop a spot market solution.  

Q: Any new exchange listings coming up? 

Yes, we have a new exchange listing announcement coming out at the end of this week. We can’t say too much, but it isn’t Binance! There will be an app for mobile trading of DGTX. It’s our plan to get listed on more exchanges. 

Q: What about the DAO? 

We’ve had a lot of questions about this, but it isn’t really a topic for this AMA, as we want to focus on the testnet announcement. We’ll be dedicating a further AMA to this later on. However, we can provide a brief update. 
We were going to issue DigiDAO tokens in October, but we’ve made a conscious business decision to delay this for now.
The reason is that if we start issuing DigiDAO tokens now before the testnet has even launched, there’s a risk that people might start dumping them at any price. Even with the testnet announcement having come directly from SmartDec, there is still a lot of doubt and FUD going on right now which is reflected in the current price. While we understand this, it means that there’s currently too much risk to start issuing DigiDAO tokens. 
To explain further, if we do start issuing tokens and people try to dump them, it creates a further set of problems. The DigiDAO has some characteristics of being a security as it represents equity ownership, so it won’t get listed on any of the big, liquid, centralized exchanges. If people do decide to dump the tokens, their only option will be to sell them on illiquid DEXs. 
We need to make sure that the DAO tokens are tradeable and liquid if the DAO is to be a success. Once we launch our own spot market, we’ll be in a position to manage liquidity. Until then, we won’t be releasing the DAO tokens. It may be disappointing but from a business perspective, it’s the best and most sustainable way forward. 

Q: If the Treasury doesn’t sell tokens for a while if the price is below $0.05c, will Digitex survive? 

Of course, Digitex will survive! Adam and the team are committed to the future of the company no matter what happens. In every sense of the word, we’re better than we have ever been. The current price doesn’t reflect the current state of the company, and our cash flow situation is secure. 

Q: When will we see a demo or screenshots? 

As soon as we have screenshots or a demo from SmartDec, we will share them with you. SmartDec are conservative in their approach, to make sure they can deliver what they promise. So they won’t release anything too early, in order not to build excitement before they’ve ensured the reality matches up. 

Q: Is there a chance that existing exchanges with their own coin will steal the Digitex idea? 

If nobody wants to copy our idea, that’s not necessarily a good thing! Look at the markets – even Binance is entering the futures game, which is great and lends validity to what we’re doing. 
However, remember that for the existing exchanges, their fee model is working for them as it is. There isn’t necessarily any reason for them to change it at this point. Digitex is different in many ways from these companies. We don’t exist to make our stakeholders profit. But if the competition is there, we’re happy to take it on. 

Q: Have you considered offering trading competitions on testnet? 

Yes, once the testnet is open then we’re happy to offer some user-generated content. Anything that can generate interest and engagement is a great idea. It’s not yet confirmed, but we like the idea. 

Q: Is KYC needed for test net? 

There isn’t any reason why we’d need to perform KYC on testnet because we’re not trading real money. There will be KYC on the live launch. 
It’s possible we may keep the testnet open beyond the live launch date. It could be a great training ground for new traders. It’s just an idea at this point, but it’s possible. 

Q: When will the promotion begin? Will you be opening up the waitlist competition again? 

We have so many big plans! We can’t say too much at this point, but we have a viral marketing campaign in store, and starting soon. 

Q: Will there be 100x leverage on testnet? 

Yes, the testnet will have all the features of the mainnet contract, but without real money.

Q: Are SmartDec devs ever going to appear on videos? It would help morale. 

We would love them to, but not everyone enjoys being on camera! Perhaps in the future we may feature some of the developers on our videos.

Q: Will the exchange be in multiple languages? 

Yes, absolutely. We’ve translated our website into Chinese, Japanese, Korean and Russian. Our waitlist and affiliate program is also already translated. We’re looking at more languages, including Turkish, Vietnamese, and Brazilian Portuguese. Our marketing campaigns will also be in multiple languages. 

Q: When will we see a roadmap with future events? 

At the moment the roadmap is just to get us to the beta launch. After that, we’ll put a roadmap together, with timelines for further features, such as a mobile app. 
Bear in mind that this is going to be a long development process. If we do all the things we want to do to make our exchange what we want it to be, we have to take it a step at a time. 

Wrapping It Up

We hope we’ve been able to answer all your questions! Overall, everything at Digitex is going very well. We’re really happy with the development progress and our marketing plans. We will be doing another AMA at some point soon, with more updates on development progress. Thanks everyone for joining this session and if you have any questions, don’t forget to join in the conversation on Telegram.

August 29, 2019
Digitex Futures

Recap AMA on the Digitex Public Testnet Launch 

Christina Comben
Recap AMA on the Digitex Public Testnet Launch  2

Last week, we announced that Digitex Futures will launch our public testnet starting 30th November. So far, the announcement has been met with mixed reactions, but our CEO Adam Todd has never been one to shy away from our supporters. In this AMA, he candidly takes on all your questions about the launch and more.

AMA – The Digitex Public Testnet Launch

Adam opens the video by recapping last week’s launch announcement and openly expressing his surprise that the announcement wasn’t received more bullishly. He admits he misread the perception and hadn’t realized people think November is so far away. He highlights that since April, there has been a vast amount of development progress and November is closer than it may seem. 
From this brief introduction, Adam goes straight into your questions. Let’s take a look at them one at a time. 

Q: Does the BTCUSD perpetual contract market as an initial offering indicate a shift away from traditional futures to perpetual contracts? 

Yes, it does. We’ve been looking into other exchanges like BitMEX, and have sought feedback from experts in the market. As a result, we believe that perpetual swaps are more appealing to retail traders. They’re simpler to understand, with no expiry date. With an eight hour funding period, the swap price doesn’t get that far out from the spot price. 
With a futures contract that may not expire for another month, there’s a premium because the spot price is further away from the contract price. Also, at settlement, there’s a need to settle the old contract and then open a new contract. Perpetual swap futures are the way forward for attracting retail traders and therefore, ensuring volume. 

Q: Will traditional futures with an expiry date be an option, or will Digitex focus mostly on perpetuals? 

We plan to focus mostly on perpetuals. The more markets and products that we offer, the more we’ll end up breaking up liquidity between different offerings. We don’t want to be the Amazon of futures exchanges. So yes, we are going for fewer strong markets to consolidate liquidity rather than offer hundreds of different products.

Q: What are the specifications of the perpetual swap contracts? 

It will be a dollar’s worth of DGTX tokens. The contract specifications will be the same as the other exchanges like BitMEX or Bybit. There’s a simple reason for this – we want traders from those exchanges to come over to Digitex and therefore, it has to be an easy switch. 
Along with manual traders, we expect there will also be many bot traders. We don’t want bot traders to have to reprogram everything for a new set of contract specifications. Bot traders will be able to come over to our exchange easily, using their existing configuration. Having the same contract specifications as other exchanges will also encourage arbitrageurs between exchanges. 

Q: Any further information on the peg system? 

To explain, the Digitex peg system is just another futures market for the price of DGTX against ETH, BTC or USD. It offers a means of hedging the price of your DGTX while you’re holding it so you can trade on our futures exchange. It locks in the price of DGTX. As you’re holding DGTX, you could sell a futures contract for your holdings on the Digitex peg system so if the price goes down, you may lose money on your trades but you’ll gain money on the peg system futures short positions. The same applies vice versa. 
It will be tailored to the perpetual swaps, so a dollar’s worth of DGTX. It will likely be a perpetual swap specification, but we still have to determine all the specs together with SmartDec. Watch this space.

Q: Will there be an API at full launch or even at the test stage? 

This is really a development question so it depends on SmartDec. For the testnet, however, there won’t be an API.  

Q: For the testnet launch, SmartDec’s announcement stated the platform will support 10,000 users. Does this mean only 10,000 users can use the platform? 

Yes, for as long the testnet lasts, there will be a maximum of 10,000 users. We don’t yet know how long the testing will run. It depends on SmartDec as a development-led decision. 

Q: Given that you plan to be non-custodial long-term, does this mean that BTC, EOS, TRON, etc won’t be listed on the spot markets?

Not necessarily, no. We won’t offer a spot market without Bitcoin, it doesn’t make any sense. This may mean we won’t offer BTC spot markets with non-custodial accounts. Maybe in the future it will be possible to offer non-custodial accounts with BTC based on a Bitcoin smart contract layer like RSK. However, this isn’t something we’re actively investigating right now.
As things stand, we want to offer BTC on spot markets, even if it’s on a custodial basis. But spot markets will only be part of our roadmap once we’ve launched. Once we do launch, we’ll work with SmartDec to determine how and when we can develop a spot market solution.  

Q: Any new exchange listings coming up? 

Yes, we have a new exchange listing announcement coming out at the end of this week. We can’t say too much, but it isn’t Binance! There will be an app for mobile trading of DGTX. It’s our plan to get listed on more exchanges. 

Q: What about the DAO? 

We’ve had a lot of questions about this, but it isn’t really a topic for this AMA, as we want to focus on the testnet announcement. We’ll be dedicating a further AMA to this later on. However, we can provide a brief update. 
We were going to issue DigiDAO tokens in October, but we’ve made a conscious business decision to delay this for now.
The reason is that if we start issuing DigiDAO tokens now before the testnet has even launched, there’s a risk that people might start dumping them at any price. Even with the testnet announcement having come directly from SmartDec, there is still a lot of doubt and FUD going on right now which is reflected in the current price. While we understand this, it means that there’s currently too much risk to start issuing DigiDAO tokens. 
To explain further, if we do start issuing tokens and people try to dump them, it creates a further set of problems. The DigiDAO has some characteristics of being a security as it represents equity ownership, so it won’t get listed on any of the big, liquid, centralized exchanges. If people do decide to dump the tokens, their only option will be to sell them on illiquid DEXs. 
We need to make sure that the DAO tokens are tradeable and liquid if the DAO is to be a success. Once we launch our own spot market, we’ll be in a position to manage liquidity. Until then, we won’t be releasing the DAO tokens. It may be disappointing but from a business perspective, it’s the best and most sustainable way forward. 

Q: If the Treasury doesn’t sell tokens for a while if the price is below $0.05c, will Digitex survive? 

Of course, Digitex will survive! Adam and the team are committed to the future of the company no matter what happens. In every sense of the word, we’re better than we have ever been. The current price doesn’t reflect the current state of the company, and our cash flow situation is secure. 

Q: When will we see a demo or screenshots? 

As soon as we have screenshots or a demo from SmartDec, we will share them with you. SmartDec are conservative in their approach, to make sure they can deliver what they promise. So they won’t release anything too early, in order not to build excitement before they’ve ensured the reality matches up. 

Q: Is there a chance that existing exchanges with their own coin will steal the Digitex idea? 

If nobody wants to copy our idea, that’s not necessarily a good thing! Look at the markets – even Binance is entering the futures game, which is great and lends validity to what we’re doing. 
However, remember that for the existing exchanges, their fee model is working for them as it is. There isn’t necessarily any reason for them to change it at this point. Digitex is different in many ways from these companies. We don’t exist to make our stakeholders profit. But if the competition is there, we’re happy to take it on. 

Q: Have you considered offering trading competitions on testnet? 

Yes, once the testnet is open then we’re happy to offer some user-generated content. Anything that can generate interest and engagement is a great idea. It’s not yet confirmed, but we like the idea. 

Q: Is KYC needed for test net? 

There isn’t any reason why we’d need to perform KYC on testnet because we’re not trading real money. There will be KYC on the live launch. 
It’s possible we may keep the testnet open beyond the live launch date. It could be a great training ground for new traders. It’s just an idea at this point, but it’s possible. 

Q: When will the promotion begin? Will you be opening up the waitlist competition again? 

We have so many big plans! We can’t say too much at this point, but we have a viral marketing campaign in store, and starting soon. 

Q: Will there be 100x leverage on testnet? 

Yes, the testnet will have all the features of the mainnet contract, but without real money.

Q: Are SmartDec devs ever going to appear on videos? It would help morale. 

We would love them to, but not everyone enjoys being on camera! Perhaps in the future we may feature some of the developers on our videos.

Q: Will the exchange be in multiple languages? 

Yes, absolutely. We’ve translated our website into Chinese, Japanese, Korean and Russian. Our waitlist and affiliate program is also already translated. We’re looking at more languages, including Turkish, Vietnamese, and Brazilian Portuguese. Our marketing campaigns will also be in multiple languages. 

Q: When will we see a roadmap with future events? 

At the moment the roadmap is just to get us to the beta launch. After that, we’ll put a roadmap together, with timelines for further features, such as a mobile app. 
Bear in mind that this is going to be a long development process. If we do all the things we want to do to make our exchange what we want it to be, we have to take it a step at a time. 

Wrapping It Up

We hope we’ve been able to answer all your questions! Overall, everything at Digitex is going very well. We’re really happy with the development progress and our marketing plans. We will be doing another AMA at some point soon, with more updates on development progress. Thanks everyone for joining this session and if you have any questions, don’t forget to join in the conversation on Telegram.

Latest News

Changing the Fundamentals of Futures Trading 3

Changing the Fundamentals of Futures Trading

Digitex Futures
Trading
• Dave Reiter
August 12, 2019

As a general rule, people struggle with change. The futures trading industry is a perfect example of a business that isn’t known for its ability to reshape itself. It’s continued to operate more or less in the same manner since its inception in 1848. That is, until now. Digitex is working to bring unprecedented disruption to the futures markets, and here’s how. 
The Chicago Board of Trade (CBOT) was founded 170 years ago, on April 3, 1848. Over the years since then, the futures industry has experienced very little disruption. However, thanks to blockchain technology, smart contracts, and digital currencies, the futures industry is on the verge of undergoing a radical transformation. In fact, the entire financial services sector will experience major adjustments as blockchain technology transitions into our daily lives.  
One of the more exciting changes to occur within the financial futures market is the world-first launch of commission-free trading by Digitex Futures exchange. Digitex is pioneering the use of its own native currency (DGTX) combined with Ethereum technology to create a zero-fee trading environment. 
On the Digitex exchange, all customers will use DGTX to buy and sell crypto futures contracts. Furthermore, DGTX offers a “double bonus” to traders who use the Digitex Exchange. In addition to serving as a token to facilitate trades on the Digitex exchange, we also expect that DGTX will rise in value based on increased demand from Digitex traders. 
Therefore, the DGTX token is the magic ingredient which enables Digitex to offer the first-ever commission-free exchange. This sets us apart from all other futures exchanges that have come and gone over the last 170 years.

The “Traditional” Role of The Broker is Being Eliminated    

The DGTX token economy model isn’t the only reason that the futures industry is on the verge of undergoing a radical transformation. As Digitex forges ahead with a commission-free exchange, it’s likely that the role of the broker within the futures industry will eventually become redundant. 
The traditional role of the broker is to serve as the “middleman” between the customer and the brokerage firm. This particular model has been in place since the CBOT was established in 1848.    
The majority of customers who have a brokerage account are “introduced” to the brokerage firm by a broker who has an “Introducing Broker Agreement” with the brokerage firm. These brokers are known as introducing brokers (IB). Essentially, the IB is responsible for onboarding the new customer to the brokerage firm’s trading platform. 
Additionally, the IB is charged with the task of handling all customer service related questions. In exchange for providing these services, the IB receives a percentage of the commission paid by the customer to the brokerage firm. Generally speaking, the IB receives 20% of the gross commission collected by the brokerage firm.
Thanks to the peer-to-peer connectivity of blockchain technology and digital currencies, brokerage firms are slowly beginning to realize that using a broker as an intermediary will no longer be profitable going forward. In fact, a few brokerage firms have eliminated their existing Introducing Broker Agreements. They are removing brokers from the equation as they attempt to reduce their expenses.
As a general rule, the brokerage industry has a history of resisting change. This explains why the broader futures industry has remained largely unchanged for the past several decades. 
Beginning in the mid-1990s, the commodity brokerage industry was forced to face the fact that pit trading would be replaced by electronic trading. Of course, the industry was not in favor of this transformation. But, despite a great deal of pushback, electronic trading eventually took precedence over pit traders and floor brokers.
However, it took almost 10 years for the entire transformation to occur. It should come as no big surprise that electronic trading has proven to be exponentially superior to the old method of using pit traders. This example illustrates why it’s never a good idea to resist the forward progress of technology.  

Digitex is Blazing a New Trail             

Not only is Digitex abandoning the traditional model of the brokerage industry, but we are also introducing the next generation of electronic trading. Digitex will offer a completely new platform with a cutting edge, intuitive one-click trading interface. 
As you can see, all of these new features introduced by Digitex are incredibly customer friendly. The entire Digitex team is laser-focused on creating the most trader-friendly experience possible.
A commission-free platform will completely alter the way traders and exchanges interact with one another in terms of trading activity and trading duration. Adam Todd, the founder, and CEO of Digitex, has always wanted to create a commission-free exchange that will level the playing field for profitable trading among short-term traders and day traders. 
Adam has a history of successful day trading. However, he always felt that long-term traders had a disproportionate advantage over day traders due to excessive fees and commissions that stack up for frequent traders.
This model actually penalizes those traders who are providing more liquidity, and more business to the exchange. Effectively, it’s a practice of charging your best and most loyal customers more. This is what inspired Adam to launch Digitex.

Digitex Continues to Move Forward  

Officially, Digitex has been in existence since its ICO on 15 January 2018. During the past 18 months, Digitex has experienced some setbacks, which is common for any start-up company. Despite its setbacks, the entire Digitex team continues to drive towards the goal of becoming the first zero-fee crypto futures exchange.
Being the first at anything is never easy because there’s no playbook to follow. Digitex must do all of the heavy liftings to build a commission-free exchange from the ground up. 
In addition to the hard-working Digitex team, the company is working with Moscow-based SmartDec for developing and programming the futures exchange and trading platform. SmartDec is a highly successful company specializing in software development, smart contract development, and software auditing. Now, Adam and other members of the Digitex team are working side-by-side with SmartDec in Moscow to ensure a seamless lead up to launch. 
We’re continuing to pioneer many brand-new concepts even within the cryptocurrency space. Digitex is one of the only blockchain startups to implement a Treasury, which ensures a continuous, sustainable stream of funding for our exchange over the next two years. We’re also implementing the Digitex DAO, so our users, DGTX token holders, will have voting rights over the exchange.
So our message to the futures industry – watch out! Digitex is on a path to disrupt the status quo. We’re providing traders with every incentive to break with tradition and enjoy the benefits of commission-free trading on a cutting-edge platform. And where we lead, others will surely follow. 
Check out our handy guide and learn to trade futures.
Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

August 12, 2019
Digitex Futures
Trading

Changing the Fundamentals of Futures Trading

Dave Reiter
Changing the Fundamentals of Futures Trading 4

As a general rule, people struggle with change. The futures trading industry is a perfect example of a business that isn’t known for its ability to reshape itself. It’s continued to operate more or less in the same manner since its inception in 1848. That is, until now. Digitex is working to bring unprecedented disruption to the futures markets, and here’s how. 
The Chicago Board of Trade (CBOT) was founded 170 years ago, on April 3, 1848. Over the years since then, the futures industry has experienced very little disruption. However, thanks to blockchain technology, smart contracts, and digital currencies, the futures industry is on the verge of undergoing a radical transformation. In fact, the entire financial services sector will experience major adjustments as blockchain technology transitions into our daily lives.  
One of the more exciting changes to occur within the financial futures market is the world-first launch of commission-free trading by Digitex Futures exchange. Digitex is pioneering the use of its own native currency (DGTX) combined with Ethereum technology to create a zero-fee trading environment. 
On the Digitex exchange, all customers will use DGTX to buy and sell crypto futures contracts. Furthermore, DGTX offers a “double bonus” to traders who use the Digitex Exchange. In addition to serving as a token to facilitate trades on the Digitex exchange, we also expect that DGTX will rise in value based on increased demand from Digitex traders. 
Therefore, the DGTX token is the magic ingredient which enables Digitex to offer the first-ever commission-free exchange. This sets us apart from all other futures exchanges that have come and gone over the last 170 years.

The “Traditional” Role of The Broker is Being Eliminated    

The DGTX token economy model isn’t the only reason that the futures industry is on the verge of undergoing a radical transformation. As Digitex forges ahead with a commission-free exchange, it’s likely that the role of the broker within the futures industry will eventually become redundant. 
The traditional role of the broker is to serve as the “middleman” between the customer and the brokerage firm. This particular model has been in place since the CBOT was established in 1848.    
The majority of customers who have a brokerage account are “introduced” to the brokerage firm by a broker who has an “Introducing Broker Agreement” with the brokerage firm. These brokers are known as introducing brokers (IB). Essentially, the IB is responsible for onboarding the new customer to the brokerage firm’s trading platform. 
Additionally, the IB is charged with the task of handling all customer service related questions. In exchange for providing these services, the IB receives a percentage of the commission paid by the customer to the brokerage firm. Generally speaking, the IB receives 20% of the gross commission collected by the brokerage firm.
Thanks to the peer-to-peer connectivity of blockchain technology and digital currencies, brokerage firms are slowly beginning to realize that using a broker as an intermediary will no longer be profitable going forward. In fact, a few brokerage firms have eliminated their existing Introducing Broker Agreements. They are removing brokers from the equation as they attempt to reduce their expenses.
As a general rule, the brokerage industry has a history of resisting change. This explains why the broader futures industry has remained largely unchanged for the past several decades. 
Beginning in the mid-1990s, the commodity brokerage industry was forced to face the fact that pit trading would be replaced by electronic trading. Of course, the industry was not in favor of this transformation. But, despite a great deal of pushback, electronic trading eventually took precedence over pit traders and floor brokers.
However, it took almost 10 years for the entire transformation to occur. It should come as no big surprise that electronic trading has proven to be exponentially superior to the old method of using pit traders. This example illustrates why it’s never a good idea to resist the forward progress of technology.  

Digitex is Blazing a New Trail             

Not only is Digitex abandoning the traditional model of the brokerage industry, but we are also introducing the next generation of electronic trading. Digitex will offer a completely new platform with a cutting edge, intuitive one-click trading interface. 
As you can see, all of these new features introduced by Digitex are incredibly customer friendly. The entire Digitex team is laser-focused on creating the most trader-friendly experience possible.
A commission-free platform will completely alter the way traders and exchanges interact with one another in terms of trading activity and trading duration. Adam Todd, the founder, and CEO of Digitex, has always wanted to create a commission-free exchange that will level the playing field for profitable trading among short-term traders and day traders. 
Adam has a history of successful day trading. However, he always felt that long-term traders had a disproportionate advantage over day traders due to excessive fees and commissions that stack up for frequent traders.
This model actually penalizes those traders who are providing more liquidity, and more business to the exchange. Effectively, it’s a practice of charging your best and most loyal customers more. This is what inspired Adam to launch Digitex.

Digitex Continues to Move Forward  

Officially, Digitex has been in existence since its ICO on 15 January 2018. During the past 18 months, Digitex has experienced some setbacks, which is common for any start-up company. Despite its setbacks, the entire Digitex team continues to drive towards the goal of becoming the first zero-fee crypto futures exchange.
Being the first at anything is never easy because there’s no playbook to follow. Digitex must do all of the heavy liftings to build a commission-free exchange from the ground up. 
In addition to the hard-working Digitex team, the company is working with Moscow-based SmartDec for developing and programming the futures exchange and trading platform. SmartDec is a highly successful company specializing in software development, smart contract development, and software auditing. Now, Adam and other members of the Digitex team are working side-by-side with SmartDec in Moscow to ensure a seamless lead up to launch. 
We’re continuing to pioneer many brand-new concepts even within the cryptocurrency space. Digitex is one of the only blockchain startups to implement a Treasury, which ensures a continuous, sustainable stream of funding for our exchange over the next two years. We’re also implementing the Digitex DAO, so our users, DGTX token holders, will have voting rights over the exchange.
So our message to the futures industry – watch out! Digitex is on a path to disrupt the status quo. We’re providing traders with every incentive to break with tradition and enjoy the benefits of commission-free trading on a cutting-edge platform. And where we lead, others will surely follow. 
Check out our handy guide and learn to trade futures.
Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

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