DigixGlobal to Return 386,250 ETH to DGD Holders

Back in 2016, DigixGlobal raised more than 460,000 ETH (worth $ 5.5 million at the time) thru sale of DGX and DGD tokens
26 November 2019   844

DigixGAO, behind the DigixDAO ICO project, is considering the possibility of returning 386,250 ETH (more than $ 57 million at the current exchange rate) to DGD token holders, The Block reports.

Back in 2016, DigixGlobal raised more than 460,000 ETH (worth $ 5.5 million at the time) in the hope of “transferring gold to the blockchain” using an economic system based on two coins:

  • DGX - a token allegedly secured by gold held by The Safe House, a Singapore-based company;
  • DGD is the management token of the decentralized autonomous organization DigixDAO, responsible for managing funds raised during the ICO.

DigixDAO currently stores 386,250 ETH. At the same time, 335,450 ETH are in offline stores, and 50,800 ETH in online wallets.

DGD's market capitalization is currently $ 24.6 million. Thus, provided that the current price proportions between ETH and DGD are maintained, DigixDAO investors can profit after the liquidation of the project storage.

Earlier, DigixDAO holders supported a proposal involving the burning of DGD tokens in exchange for ETH from the company's storage. However, DigixGlobal opposed this proposal for fear that the US Securities and Exchange Commission (SEC) would consider the coins of the project as securities. The co-founder of the company, Kai Chan, noted that he would prefer such a mechanism to completely eliminate the DigixDAO storage and, consequently, close the project.

Now the founders of Digix plan to submit a proposal to the vote, which will last about one month. According to Chan, the DigixGlobal team owns at least 8% of DGD tokens. If at least 60% of investors vote in favor of liquidating the repository, then the project participants will free up funds for working on other projects.

Neo Foundation to Withdraw $11M From Cold Wallet

These funds will be used to finance its operations in currrent reporting year and $190M are stiill in the vault
26 March 2020   955

On March 25, the Neo Foundation announced the withdrawal of 1,660,865 NEO ($ 11 million) from the cold wallet to finance its activities in the current reporting year. About $ 190 million are still in reserves.

According to rules established in the Neo White Paper, the NEO tokens maintained by the Neo Foundation are mainly used to continuously support Neo's technological development, ecosystem growth, community expansion and the normal operations of the foundation and related organizations. 

 

Neo Foundation

According to the publication, 1,660,865 NEOs were transferred “from a blocked account to a current account”. As the information on the blockchain shows, these funds were directed to an address containing 14.6 million NEO or about $ 100 million. The project does not disclose who controls this address and what fate awaits the released tokens.

White paper Neo suggests that project costs in any given year should not exceed 15 million tokens. In the near future, a financial report for 2019 will be published.

At the time of publication, NEO is the 23rd largest asset on the market with a capitalization of $ 479 million. The price of one NEO is $ 6.79.