In this post I'd like to share something called DX Gold based on my extremely short-lived career in exchanging ecurrencies as a DX Merchant.
The system was very complex and my memory of the exact details a little bit sketchy so if there are any fellow ex DX Merchants here at Steemit please chime in with any comments.
Sometime in early 2004 I got involved with a business opportunity that was promoted as the world's first gold backed e-currency exchange.
It was operated from Vanuatu by a company called GDT which was supposedly the company that held the patent to the original retina scanner that was going to be the next big thing in financial transaction security.
Looking back, it's doubtful the system was ever gold backed and I wasn't there long before it came apart leaving individual exchangers like me with frozen accounts and broken dreams.
I'm not sure how I got into this, I think it was through the TalkGold forum but I signed up and after slight learning curve was making some nice bonuses as an e-currency exchanger.
This the DX Gold Digot...
I believe it's correct to say that the Digot was to DX Gold what Steem is to Steemit, the base unit of value in the system.
One difference is that we know how Steem is created and valued, something that was not known about the Digot.
The complexity of the system and the range of products that it offered make it difficult to believe even today that it was a Ponzi scheme and designed for the sole purpose to be a scam from the start.
The core of the opportunity consisted of your DX portfolio and the DX Merchant Console.
You held gold digots, which were pegged 1 to 1 with the U.S. dollar. The portfolio was your core account within the system and you had several options what you could do with the funds for example leave them there and make interest or you could fund what was known as the DX Merchant Console.
This is where the real fun started.
People that had consoles also had to have accounts with every e-currency that they wanted to trade.
Moving funds from one of the external e-currency accounts INTO the DX system via the console was called an INexchange.
Moving funds from the console to one of the external e-currency accounts was called and OUTexchange.
Commissions were made from doing OUTexchanges.
As you can see in the left hand panel, we had a wide range of e-currencies to work with including Pay Pal in the beginning.
Each e-currency had a different "claim rate" which was basically the commission for doing the exchange. I assumed the different rates were based at least in part on the liquidity of each individual e-currency. The blue arrow is pointing to a commission made from doing one OUTexchange.
At the height of the system a console would process many OUTexchanges every day. The photo above shows some typical commissions for OUTexchanges.
There was a lot of excitement around this company.
To get funds out of the system you would list an OUTexchange to the external e-currency of your choice and another DX Merchant would process it. The funds would come out of your console and and arrive in your external e-currency account.
Slowly over time, the OUTexchanges started taking longer to process until eventually the DX system came to a standstill.
At the time of the shutdown, this is what my portfolio looked like...
For a long time the DX community hoped and believed the OUTexchanges (getting money out of the system) would start back up again but it never happened.
There was actually a learning curve to operating a console, it's not something that you just started doing. Any former DX Merchant reading this will know exactly what I'm talking about. To this day the complexity of the DX System makes it difficult to believe the whole thing was designed just to be a scam.
I knew going into this that there was risk so I chalked it up as a learning experience.
Anyone else have experience with DX Gold?
DXGold, DXInOne, etc... was a scam.
It was very clever ;) Members were busy by managing there unuseful accounts so they believed it was a real business !
The operations to transfer/exchange money were stupidly complexed !
Many people were telling they know how to earn big money and they wanted to sell you their miraculous method ^_^ But all of them were only bullshit ;)
If we can build system like DXGold doing distributed decentralized blockchain coin exchange that would be nice, exchanging coin and earn small fees, without central exchange that been failing people all over
I'm surprised it hasn't been done :o)
The issue started when the platform allowed users to churn funds w/in the platform w/out going through the in/outxchange process which triggered the fees/micro taxes necessary to maintain a real and healthy platform 'economy' and currency growth. Nearly every user, myself included, took advantage of this which naturally resulted in a massive bubble of paper profits based on artificial transaction activity, If this problem had not occured, the role of dx merchants would have evolved into brick and mortar merchants driving the economic activity of the platform with real world products and services and consumers 'financially incentivised' to support local and global economies via platform merchants' buyng and selling activities. In hindsight, dxg admin should have acted decisively much earlier to put a plug on the churning of funds until the logjam of artificial gains was cleared. This would have been a better option than what actually took place where admin, late in the process, put the responsibility on users to lower their respective portfolio deficits. With that, I don't think that the purpose and aim of dxg was meant to be a scam or ponzi. The issue lay in the execution and management. Yes, the platform can look into incorporating blockchain technology but would have to redefine and enhance its offering as it will now compete with similar offerings and platforms being developed through smart contracts.
You're explanation makes sense, the management lost control of it maybe a bit like what's happening in the banking system today.
I always believed it was a good intention that went wrong. Such a shame.
Thanks for the comment :o)
Agree with you and you're most welcome!
Changer-E-currency exchanger payment proof
I use changer last one year have no problem.
See my payment proof.
They exchange instantly
Exchange with best rate.
You can exchange any coin to any coin.
Any coin to Perfect Money, Perfect Money Voucher, Payeer, AdvCash
Online since : 2009
Signup link : Changer
Payment proof image : http://prntscr.com/jmty4i