Digitex 2nd chance? No way!

In this short post, I just want to make it very clear why I will be going nowhere near the ‘second chance’ auction of Digitex Futures this week.

In the ICO a few weeks back, tokens were sold for $0.01 (one cent). Somehow, apparently, one large investor was able to secure around 22% of the tokens for around $1.2million.

The guy behind this (who, I have to be honest, I feel less confident in the more I watch his videos) has bought back that large investor’s tokens, and is now offering them in a reverse auction.

The thing with a reverse auction is that the price starts high and, over time, gets lower.

The Digitex boys have doubtless done this because their initial offering sold out in 17 minutes, and they doubtless feel they could have made more money. A lot more money.

Their ICO raised around five million dollars – it would have been seven million but for the ETH price dropping back.

If there’s a feeding frenzy this time, and the tokens sell out within an hour, they will cost 25c each. Which is 25x what they cost a few weeks ago. Which is patently ridiculous.

There’s a good chance that when these tokens become available on the exchanges that they will go to five or six cents. If you bought at a cent, you’re in clover. If you buy at a quarter, you’re in shit.

The first ICO brought in five million; the Digitex boys have a good chance of bringing in $25 million from this reverse auction. But they shouldn’t be doing this. In my opinion. It stinks. In my opinion.

Here’s the video which explains how the reverse auction works:


The one proviso to this is if the reverse auction is still running 24 hours after it starts, when tokens will be available for one cent again.

I believe there are enough mugs around who will buy these tokens at a huge multiple of even the most ambitious early valuation for the thing to sell out in a couple or three hours at most. They were great value when first offered in the ICO. They are likely to be desperate value in this week’s reverse auction.

Don’t be one of the mugs. As soon as the tokens are available on an exchange, you’ll be able to buy them at a few cents.

It WILL be interesting to see what happens with this. But it WILL NOT be something to get involved in unless there are still tokens available 24 hours after launch (which is on 15th February).


5 thoughts on “Digitex 2nd chance? No way!”

  1. does make you wonder about investing at all if they behave like this at the start imagine what tricks they will pull when they hit difficulties ? They perhaps have missed the boat with eToro anwyay ? what you think ?

  2. Told you it’d happen. I don’t claim to know anything about this area but I DO know a c***t when I see one. This guy fits the bill. I’m going nowhere near.

    1. I certainly wouldn’t go that far, Brian. But he does seem unable to avoid unintentional self-interest references in his videos.

      I’ll be watching the space, especially when the tokens hit the exchanges, because at a couple of cents, they might still be worth a play.

  3. One possible reason for buying that big chunk back from big investor is if Digitex becomes an exit scam (as has been warned by few) having one big investor means they will chase you to hell. Having haunderes of small investor, garantees people won’t chase their money.

    1. That’s possible – most things are possible, esp in crypto world – but unlikely in my opinion.

      As it turned out the tokens sold for $0.019 each, i.e. just less than double the ICO price. I imagine that was galling for the Digitex guys, but may still represent a sliver of value. It’ll be interesting to see how they fare when they start trading on the exchanges.

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