The case of XDB
We buy tokens we believe will see adoption. As time went on, we saw projects getting partnered with huge companies. But what have these partnerships done for token price? Usually we saw an increase, but was it due to actual adoption or through speculation caused by the announcements?
Usually the latter. To this date, there are still no tokens out there that really get used by people. This is due to how complicated it is for average people to start buying and using even relatively simple ERC20 tokens.
In order to really see the power of adoption, we need a token that doesn’t require the active decision of individual people to actually use that token. We need a token that becomes embedded into a natural task, like paying for a purchase or using a smartphone app, without the end user knowing they are using blockchain technology.
How is XDB different?
XDB is not marketed to end users. It is not even directly marketed to brands. Instead, Digitalbits allows brands to use their blockchain to issue their own regulated branded stablecoins. Imagine a “smart dollar” but instead of the regular design it’s branded with your favorite brand, and backed by real dollars for guaranteed value.
This is a concept that does not require understanding crypto or finance or any advanced concept really. It is a mainstream-compatible idea. Fly with Star Alliance, buy coffee at Starbucks, shop at Walmart, and receive their individual branded dollars for you to use as you please. Spend them, collect them, or swap them for another branded stablecoin in the Digitalbits network. It’s something anyone can understand.
Why should I care, I want to make money!
Patience, we are getting there. Now we are moving away from what the average consumer needs to understand and are getting to the juicy part: The investment proposition. Brands don’t get to use the infrastructure of the Digitalbits network for free. In order to make sure the network does not get flooded by spam-accounts, every single account transacting branded stablecoins needs to be backed by 10 XDB as an anti-spam measure.
In other, simpler terms: When someone receives a branded stablecoin for the first time, 10 XDB are taken out of supply and assigned to that account for verification without them ever having to buy them. Instead, brands will carry an inventory of XDB to seed new accounts for their customers on the go. This allows a seamless way for customers to adopt the token without knowing it, while in the “background” the circulating supply of XDB shrinks, effectively raising price.
Yeah, I heard that so often, “big companies will buy our bags”, this is just another empty promise!
XDB is different. First of all, large clients with 10+ million users were teased multiple times. The advisory board is stacked with C-level executives from top companies. More importantly, Digitalbits SPECIFICALLY partnered with Kucoin for an Enterprise Currency Desk (ECD). This means that unlike the “broken promise” projects, Digitalbits is taking accountability and actually making actionable and believable steps towards fulfilling their vision and promise.
Why would Kucoin publically announce this alongside Digitalbits right now if they were not confident that it would see good use relatively soon? Digitalbits teased the onboarding of large clients multiple times, do you think Kucoin did not consider the optics of partnering with them if these were just empty promises?
The difference between Digitalbits’ promises and the regular empty promises we are used to is that Digitalbits are taking active and believable steps towards fulfilling theirs while being backed by established industry players who have a lot to lose reputation-wise.
