A couple of days ago, Digipulse – an Inheritable Digital Vault or a cloud storage that’s inheritable, if you don’t get it, it’s like a Dropbox, just everything your upload is encrypted, meaning, no one besides you can access it and it’s inheritable. When you will die all your Digital Valuables will be transferred automatically to your chosen recipient. Digipulse raised $1 million for their ICO – announced its decision to delist and burn all of their tokens called DGPT because they are not used by the community.
DGPT tokens will be destroyed and, in return, the users will receive shares of the company. At the moment there are 2 million tokens outstanding, and the share conversion will be accepted for those who have more than 10 000 DGPT tokens. Everyone who has under 10 000 tokens will lose a portion of their investment.
The good news? You can still use their service. So if you want to leave your Digital Assets to your family, friends – you can still do that.
If you’re a loyal customer then nothing changes, only if you were an investor.
Why did Digipulse get rid of the Token?
CEO Normunds Kvilis explains that Digipulse was looking for ways to make the inheritable vault(service) available to the non-crypto users to expand their market. They received hundreds of signups, unfortunately, only two users decided that they will pay in DGPT for their services.
Later on, Kvilis explains:
“This indicates that the token is generally used to pursue quick gains from a speculative standpoint, rather than being used for its main purpose of service use. It would naturally be hypocritical of me to claim that there aren’t day traders on Wall Street, but only accepting tokens would mean a slow death for the project.”
Basically, Digipulse doesn’t want to keep the token just for the sake of speculation. It doesn’t bring any value to the company. People only use the token to manipulate the price and gain quick income. None of their followers, supporters are really interested in service, just speculation, and in their eyes, that’s not a sustainable business model.
Are ICO’s going to get de-tokenized?
Cryptocurrency market is very immature, most of the people don’t understand the technology that’s under them and don’t even care, they just want to buy a couple of Tokens and Coins and see them rise to the moon. The community is just speculating not evolving.
From last year 46% of ICO’s have failed already. I expect the number to grow at least to 95%
I’m sure that 95% will fail, eventually. For most the companies there’s just an interesting idea under it, but not a business plan and let’s not get going on the execution.
Even the companies that raised their funding through ICO and are succeeding, can we honestly say that they need Tokens? They don’t! 99% of the companies out there don’t need tokens. It’s just a Trend and there’s a new Trend coming – De-tokenization.
I’m sure there will be projects where it makes sense to have a Token, but for most of them, it’s just a trend. I believe ICO’s are a great way to receive a starting capital for your Startup, but the Tokens are a real problem and that needs to change.