This article was first published on Stories by Digix on Medium
Indorse reveals its decision to hedge a portion of its ICO funds with gold-backed token DGX.
Singapore, 14 December 2018: Indorse, the blockchain-based social network for professionals, has today revealed one of the secrets to its success was a decision to hedge a portion of its token sale with gold.
Other companies that leveraged the certainty offered by DGX in the early days of ICOs are on course to sustain their multi-year development plans — including paying salaries, rental fees, and other overheads.
Gaurang, co-founder and CEO at Indorse, said: “We felt at the time it was necessary to adopt sensible treasury management practices to protect the community funds and develop the project.
“Hedging a highly volatile asset like crypto isn’t straightforward. But looking back, turning to Digix and its flagship product DGX was an obvious solution and offered us the real-world security we needed.”
From our discussion with industry peers, many other ICOs failed to hedge or hedged badly — partly because of price speculation on ETH prices at the beginning of 2018.
Digix, which creates DGX token, was the first ever company to conduct an ICO equivalent event on Ethereum. Every 1 DGX token represents a gram of physical gold held in an accredited precious metals vault in Singapore.
Kai C Chng, Digix CEO, and founder said: “Many of the earlier ICO companies that you see still surviving and thriving made the sensible decision to hedge with DGX.
“Treasury management in the crypto ecosystem hasn’t always been sound. One of the top priorities of young companies should always be to protect their funds. By bringing investment-grade gold onto the blockchain we deliver an asset that is a sensible hedge, but also a historically well-performing investment.”
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Stories by Digix on Medium