DGD’s Price Falls 10% After Americans Were Banned From DigixDAO
Regulations can be rough for the crypto market. American DGD token holders were recently excluded from receiving their promised transaction fees and demurrage fees while other people from Russia and China were not. This has made the prices of the currency tank and lose 10% of their overall value in the market.
Digix is set to launch the Decentralized Autonomous Organization (DAO), which would let the holders of DGD tokens vote on projects to give them ETH. They would receive more tokens for participating… if they are not based in blacklisted countries.
The platform will reward people from following the process of staking their tokens giving Quarter Points to the companies they like. You can then determine how much DGX tokens you will be able to make from the program.
However, people from several countries have been excluded due to local regulations. Some obvious countries were Venezuela, Iran and North Korea, but countries like Ukraine, several countries from Africa and the United States were also excluded.
Digix affirmed that it was banning Americans but not Chinese, Japanese or Russians because of differences in their securities law, as the ones from the U. S. are very rigid and the regulators are far from clear on the issue. China, for instance, banned Initial Coin Offerings (ICOs), but its securities laws are not so incompatible with the company as the ones from the U. S.
Unfortunately, if you are from the U. S., you cannot even get your tokens bought back because this could a breach in the securities law. If this sounds ridiculous to you, it’s because it is. Investors are bound to not be very happy about the decision, but they cannot do a thing for the moment since the legislation does not protect them.
The DGD Token Sale
Back in 2016, before ICOs were such a prominent trend, di USD during its ICO. One of the goals of the company was to tokenize gold in order to have some “real value” behind its token. So far, some gold was tokenized.
At the time, people expected to get their investment's worth by buying the tokens, but it looks like you will only get something if you participate in the Digix DAO, but some of the token holders are locked out now.
Despite the company’s intention of not getting sued, we can probably see that happening soon since investors will probably be very pissed with this disappointment.