Digitex, a highly-anticipated zero-fee, non-custodial futures exchange with its own cryptocurrency, DGTX, came out Friday to announce that it would be postponing the April 30 launch date until further notice.
In the aftermath of the announcement, which came with a 21-minute profanity-laced video explanation from CEO Adam Todd, DGTX crashed more than 70%, erasing more than $58 million from the exchange token’s market cap.
The candid video exposes a laundry-list of issues currently plaguing the Digitex project, ranging from the decision to outsource platform development to Spotware, to the seemingly fragmented nature of the key players including Todd, who says he has, thus far, been working part-time to try and create the next BitMEX.
“I feel I’ve been blind-sided here,” explained Todd. “We’re a week away from the launch and we’ve been delivered this piece of fucking garbage that doesn’t even work. It doesn’t work…. We can’t launch this, it’s as simple as that.”
According to the video, after the team successfully demoed an internally built version of the exchange, Todd made the decision to outsource development of the launch version to save time. The move gave the rest of the team time to gain a staggering 1.5 million pre-launch sign-ups for the platform. However, it also hid many obvious issues until the week before launch.
Here are some of the issues and bugs listed by Todd in the video, which have forced the team to scrap the Spotware-built exchange:
- No 24-hour volume figure.
- Spot prices only appear on the charts.
- Leverage can’t be changed.
- Difficulties in selling contracts.
- An “insufficient balance” bug that occasionally prevents buy orders.
- Auto rounding causing massive slippage (the test bots are losing $20,000 a day).
- Software built to charge commissions, which doesn’t mesh well with Digitex’s commission-free model.
Moving forward, Todd claims he has locked down an 8-person office in Serbia and rehired the lead developer and front-end developer from the previous version of the exchange. According to the video, he’ll be working 12 hours a day, 7 days a week until the exchange is launched, which he says could be as early as 3 months, although it remains to be seen whether his “loyal community” will stick around that long.
DGTX is now down 73% on the day to $0.024835, giving the token an $18.6 million market cap.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.