Digitex is a new “commission-free” bitcoin futures trading platform that I am very suspicious of. It has a lot of potential to be an elaborate ponzi scheme and in this review I’ll be going over why. If you are wondering is Digitex a scam then you are definitely going to want to hear me out.
There are a lot of people that are promoting this as the greatest thing ever but are doing it just to make money, which I will also go over more about.
As some of you may know, I’ve been online marketing since 2015 and am very familiar with some of the big players involved in the space. I first came across Digitex after getting an email from a big time online marketer, which I was a bit suspicious of, mainly because the guy I’m talking about (who I won’t mention) has been involved in numerous shady programs/systems over the years that provide little to no value and are set up just to suck money out of people.
After looking more into it I noticed that there are lot of online marketers promoting this program and I’ll be explaining why this is happening soon. First I want to go over what Digitex is and how it all works first though.
What is Digitex and How Does It Work
Digitex is a commission-free cryptocurrency futures trading platform. If you are unfamiliar with what futures trading I’m not going to get into it much, but basically what you need to know is that in this case you are betting on the future price of cryptocurrencies, in particular bitcoin, ethereum, and litecoin.
Digitex’s claim to fame is that it offers “commission-free trading”. That means that you can trade back and forth without any cost right? Well if you were to think that you would be wrong. Instead of charging normal commissions as an exchange normally would, Digitex charges their fees in DGTX tokens, or Digitex tokens. So in order to trade futures on this exchange you will need DGTX tokens.
So while it may be a “commission free” trading platform it is NOT free of fees. These DGTX tokens cost money to buy. They say that they will be releasing a limited amount of tokens each year but I’m not entirely sure how this will all work out.
How Profits Work
Everything will be done in these DGTX tokens which run off the ethereum blockchain. Your profits will be given in these tokens so pretty much everything relies on these tokens holding value.
Something That Is Concerning
So I found out that the reason I am seeing so many online marketers promote this Digitex is because they give out massive referral commissions. They are paying people 30% referral fees, which means that the people promoting it are earning 30% of what you invest in it. So if you buy $100 worth of tokens after clicking on someones link they were promoting they are earning $30 of that during the ICO sale.
Now just because they are offering referral commissions isn’t the part that worries me. What worries me is how high these commissions are. 30% is a heck of a lot to be giving out and I’m a bit suspicious of the whole thing.
On top of this there are also a fair number of others online claiming that this is nothing more than a ponzi scheme designed to take people’s money and reward them with these DGTX tokens which only have value if people continue to use them, which is similar to suspected ponzi’s like BitconnectX & BTC Global Team.
The Man Behind Digitex
Adam Todd is a the creator of Digitex and honestly he does seem like a trustworthy guy to me. I have been reading background information on him and see good things. He has been around for quite some time in the trading industry and even created a software called BetTrader that allows you to trade with Betfair more easily.
I was also reading through information about him on Reddit that seems to be legit.
All the information I see on this guy checks out. He has been around for a while, he has been successful in the industry, he has developed software before (that works), etc.
Conclusion on Digitex – Good Opportunity or Scam?
I’m a bit hung up on the legitimacy of this opportunity. There are things I’m suspicious of that point to this being a scam but then when I look into the guy (and his team) behind it this seems legit. I suppose there will be more information that I can gather in the future but right now there isn’t much for me to go off of.
One thing for sure though is that I really don’t see the value in this “commission-free” trading. Of course they still have to make money to stay in business and they are doing this because you have to buy tokens to be able to trade. So I don’t really see how this helps out traders… I only see this making the creators richer.
If you have an opinion on this place I would love to hear it below in the comment section. You can also ask me any questions you have down there 🙂
Also, if you have time read my post on 10 ways to spot a cryptocurrency scam. It will tell you what to look for and how to identify possible scams.