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For bag holders, 2018 was torrid. Events of last year slashed participation, shaking out speculators. Bad in that some projects folded, it was good because it tempered the burgeoning and volatile market. Weeding the market from speculators, analysts reckon, was a good thing for blockchain and the cryptocurrency market.
However, with the falling prices of 2018, dubbed the crypto winter, there was opportunity for true believers. Unmoved by swinging asset prices, the majority drum for complete crypto adoption and even the excising of fiat from the crypto ecosystem.
Indeed, adoption continues to be a paint point. Presently, the bursting of expectation in 2018 added perspective. The recovery of prices in H1 2019 is a ray of hope that in one way or another will be catalyze development towards the overarching goal. Promised, the journey of inverting the status quo will be long and rugged. Of the many startups paving the road to this ideal world is DigitalBits.
What is DigitalBits?
Put simply, this project seeks to unlock value in the pockets of millions as per their official Twitter description. To achieve that, they are tokenizing pre-existing digital assets in consumer applications. Condensed, DigitalBits is a blockchain for brands. How is this? Well, they do this by integrating with consumer brands and in doing so, they effectively shorten the gap for blockchain’s adoption.
Evidence reveals that there is demand for immutability, decentralization, transparency and efficiency presented by blockchain. As such, to avail these benefits to the masses, DigitalBits is first tapping into the pre-existing market with vast user cases through mass marketing.
Thereafter, they would learn the market’s behavior before transforming the same by enhancing the functionality of certain asset classes. After all this is done and dusted, the last step would be to co-exist with the consumer apps that are in the “pockets of millions.”
Clearly, DigitalBits goal is to break to the mainstream through existing brands. To that end, Digital Bits is an enterprise grade platform specifically built to support brand currencies.
The platform is a third generation protocol that forked off the Stellar. Driving for efficiency and effectiveness, the team is aware that blockchain, albeit its revolutionary characteristics would useless if there are no users.
As such, DigitalBits is complementing learned behaviors and patterns while concurrently being pro-users. DigitalBits strikes a sweet spot necessary to effect change by allowing in-app integration all this while minimizing the change to user’s learned behaviors.
Further, DigitalBits will serve as a primary use case for Metalyfe marketplace, introducing blockchain browsing and one-click pay thereby bringing back control to the end user. Additionally, by understanding and syncing with the recent trends of a cashless society, DigitalBits is exploring a Card-Based Payment Solutions cognizant of the advantages over traditional payment systems and those which end users will draw benefits from.
Other differentiating features include an inbuilt a multi-hop DEX-solving liquidity, portability and transferability of digital assets, a network trust management system that is compliant to KYC and AML, a Token Name Certification Service (TNCS)-for validation and authentication of asset providers, and a scalable, high throughput platform with multi-asset support.
The team behind this ambitious user-centric project is led by Al Burgio, the CEO and Founder. Michael Luckhoo is the VP Operations, Thomas Madej the director of DevOps and Rajiv Naidoo, the Head of Community & Research.
Advising the team is Julie Lyle, the former CMO of Walmart, Matthew Roszak, the co-founder of Bloq, Toni Lane Casserly, the Co-Founder of CoinTelegraph, Lars Rensing, the Co-Founder and CFO at ARK, Paul Gampe, the Former Vice President at Red Hat, Don Sheluga, the Director of Loyalty Operations at Hertz, David Holland, the Former SVP Treasury at Cisco, Geoffrey Kent, the Former VP of Product Partner-ships at Points.com and four others including Michael Morris, the co-founder of Slide.
Roughly two years after forking from Stellar in Q3 217, development has been steady. After launching the XDB explorer, launching the DigitalBits mainnet, the XDB wallet and portal and partnering with Cogeco Peer, the platform now has only find users but has been covered by leading publications including Bloomberg and Forbes.
In Q3 2018 for example, the CEO had an interview with Larry King where Charles Hoskinson of Cardano was also part of the panel. Overly, despite asset prices sliding in 2018, it was a fruitful year for DigitalBits. They hosted the DigitalLive Conference in Q4 2018, partnered with Metalyfe, and in Q1 2019 released their mobile wallets.
In Q3 2019, they released DevOp tools consisting of developer toolkits and containers, pre-launched the Token Name Certification Service and integrated a payment gateway within the same period. In Q4 2019, DigitalBits plan to expand into new industry categories, pre-launch an algo-pool before officially launching the TNCS and testing their algorithmic pool in Q1 2019.
Evidently, DigitalBits objective of driving blockchain adoption is bearing dividends. Aside from mentions in NASDAQ, Forbes and Bloomberg, DigitalBits has struck deals with several companies and platforms including Metalyfe where they integrated their blockchain browser, bringing back ownership to the end user, not to harvesting companies.
According to DigitalBits, “Metalyfe, a full web 3.0 enabled browser, aims to be the go-to access layer for dApps, and a portal for housing and monetizing data that current browsers collect on behalf of third parties.”
In Feb 2019, they partnered with Zagg protocol to “bring best of breed end-to-end blockchain solutions for enterprises to offer superior loyalty programs to their customers that can drive better customer engagement & satisfaction.”
Other partners are LOBSTR, a leading wallet provider in the Stellar ecosystem, and the North American Enterprise Consulting firm.
Early Funders include Mathew Roszak of Bloq, Richard Rofe’ of Arcadia Crypto Ventures, Lars Rensing of Ark Token, James Lowry of Storj Token among others.
DigitalBits (XDB) Token and Fund Distribution
Given the friction present in the billion dollar loyalty and reward points industry, the platform will find use in this digital asset category. With the capacity to tokenize and provide liquidity for digital assets, DigitalBits through its token will be resolving frictions faced by both producers and consumers in the loyalty and reward points industry.
Overly, the platform’s native ERC-20 utility currency, the XDB, serve three main functions:
- It protects the network thanks to staking. Each account holder is required to stake 10 XDB for authenticity purposes and to enable the send function within the network.
- Acts a bridge allowing cross chain transactions.
- Used for fast and low cost on chain transactions. Applicable transaction fee is 100 nibbs or 0.00001 XDB. Low, the purpose of this is to deter determined elements keen on spamming the network.
In total there are 100 billion XDB. Out of that 32 percent has been set aside for investors, 40 percent restricted for algo pool, 2.5 percent for advisors, 12.5 percent for the team, 3 percent for bounty and air drops, 5 percent for partnership developments and 5 percent set aside for Research and Grants.
Their ICO was conducted from Dec 30, 2018 to April 15, 2019. During their pre-ICO, each XDB was available at 0.00003 ETH but that figure rose to 0.0029 USD during the main ICO. Only ETH and BTC were accepted. The amount raised is yet to be made public.
However, it should be noted that committed funding from prior rounds was $2 million. Consequently, tokens nested will be released over a one year period between 2020 and 2021, adding 2 billion more XDB tokens into the circulating supply. Most notably, XDB has no inflation, perhaps the main differentiator between the platform and Stellar’s coin, XLM.
Of the funds raised, 60 percent of the total has been split equally between marketing and business development. 10 percent will be funneled for research, another 10 percent is meant to cover legal and advisory costs while 20 percent will cover Administration and operations cost.
XDB Circulating Supply and Supporting Exchanges
As of writing, the token has a circulating supply of 185,055,555 XDB with a market cap of $2,594,254 and daily trading volumes of $18,756.19.
Trading at $0.01401878, it is up 8.1 and 5.2 percent in the last day and week respectively, but down 3.6 percent from its all-time highs of $0.01463224 reached on Aug 19, 2019.
The only exchange that supports XDB trading is Idex, where the token is paired against ETH, attracting a spread of 0.13 percent. At spot rates, XDB has a ICO ROI of 5.03 against the USD.
Short term catalysts
Interesting: Some very respected crypto funds and companies like Pantera Capital, Bloq and Blocktower Capital are invested in DigitalBits and ususally these parties are involved for a reason.
This is also matching strong rumors of a huge and very known company adopting DigitalBits tech for millions of customers. Also in the DigitalBits Roadmap it’s clear that a major company started testing DigitalBits tech and this partnership announcement will be released in 2019. It seems that many important investors seem to value this and we think this might be very interesting to keep an eye on!
Overly, DigitalBits seeks to build a global token economy where value can be sent seamless and cheaply. Making this possible is a dedicated and an experienced team that is keen to see its implementation.
For investors to find value for money, the token must be valuable in a way. Already, the lack of inflation is a real catalyst that could pump prices in the short to medium term. However, with the planned release of over 2 billion XDB between 2020 and 2021, the resulting supply could dampen bullish expectations.
Regardless, the team has been strategic and the team’s first objective is to eliminate the friction in the loyalty points and rewards industry. With an incredible technology and a focus on offering solution in a multi-billion dollar industry, XDB’s value lies in their drive for cheap payment and remittance, app integration, tokenization and trading assets via a TNCS planned for testing in Q1 2019.
In the US alone, the market is estimated to be worth $48 billion but is centralized, illiquid, exists in silos, and generally, the user experience is frustrating. Determined, XDB could draw benefits more so if there is there is a partnership with Flexa, one of the best crypto companies around. After all, both are advised by former executives of Walmart.
XDB investors can trade the token at Idex even though the project completed their ICO barely four months ago. Evidence reveals that their resolve will see the project expand as the resolve a major paint point in the loyalty point and rewards industry, a multi-billion sector as aforementioned.
If investors sense opportunity, leverage it as DigitalBits simultaneously draw more partners, get more media mentions, then it will only be a matter of time before they get integrated at leading exchanges. Such will improve XDB’s liquidity and that is massive for XDB investors.
Long term Catalysts
The Loyalty points and Rewards sector is only one of the many industries where blockchain can improve efficiency and introduce many more benefits for the user. As per DigitalBits roadmap, their aim is to expand to other industries from 2020 of which gamers and the gaming industry are well positioned to be the main beneficiaries.
That means striking more partnerships and ultimately driving blockchain adoption in line with their objectives. Since XDB has no inflation and daily trading volumes is $18,756.19 at Idex, the more partnerships, the more XDB’s demand increase and that will counter the supply spike of 2020-21.
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