[ANN][DGC][FBD] Free Bank of Digitalcoin ~ Risk Averse DGC Investments

[baritus]

It is time to announce the Free Bank of Digitalcoin, an initiative that aims to introduce  a new concept to the crypto-world.

What is the FBD?
A community inspired and funded effort to further the usage of DGC as a store of value and monetary unit.

What services are provided?
The primary service will be hedging and profit enabling. FBD will allow people to purchase DGC at a fixed rate (set to match market price), and hold contracts that provide the option of selling back the DGC at purchase price. Deposits and withdrawals will initially be accepted in bitcoin, litecoin, and USD.

How is this useful to me?
The FBD will serve to lower investor risk in crypto-currency and allow simple, risk free cash flow into digitalcoin.

Example:
1. John Doe decides he wants to invest in digitalcoin but he can't handle downside risk.
2. J.D. contacts the FBD for a DGC quote.
3. J.D. purchases digitalcoin directly from the bank and is given the option to sell them back at purchase cost.
4. Now, if the price drops, J.D. can execute his option and sell back the coins at purchase price. If the market rises, he can sell his digitalcoin on the open market.

By removing liquidity uncertainty regarding DGC, the FBD will serve to promote and nurture digitalcoin growth.

[Lauda]

This is something rather unique. I like the idea behind it, should do well for DGC

[Sondey10mg]

I'm glad i've invested in DGC

[fendlestick]

Really exciting news I look forward to more info.

[spoid]

what fees/sorcery make this possible and trustworthy?

[icyak]

what fees/sorcery make this possible and trustworthy?

I got same question, please baritus explain because i am big fan of DGC.

[baritus]

Sorcery: If you think about crypto-currency in the sense that each is a promise of fiat redemption, instead of assuming innate value(which really doesn't exist), you open up the opportunity for a promise exchange based on a fixed asset, fiat in this example.

Fees: There will be small fees to cover the day to day operations and transaction processing.

Trust: I will be taking responsibility for the Bank's day to day operations and will provide public statements for accountability.

[anderl]

It is time to announce the Free Bank of Digitalcoin, an initiative that aims to introduce  a new concept to the crypto-world.

What is the FBD?
A community inspired and funded effort to further the usage of DGC as a store of value and monetary unit.

What services are provided?
The primary service will be hedging and profit enabling. FBD will allow people to purchase DGC at a fixed rate (set to match market price), and hold contracts that provide the option of selling back the DGC at purchase price. Deposits and withdrawals will initially be accepted in bitcoin, litecoin, and USD.

How is this useful to me?
The FBD will serve to lower investor risk in crypto-currency and allow simple, risk free cash flow into digitalcoin.

Example:
1. John Doe decides he wants to invest in digitalcoin but he can't handle downside risk.
2. J.D. contacts the FBD for a DGC quote.
3. J.D. purchases digitalcoin directly from the bank and is given the option to sell them back at purchase cost.
4. Now, if the price drops, J.D. can execute his option and sell back the coins at purchase price. If the market rises, he can sell his digitalcoin on the open market.

By removing liquidity uncertainty regarding DGC, the FBD will serve to promote and nurture digitalcoin growth.

any consideration on including ARG in this?

[baritus]

The details aren't public yet regarding ARG and how it will fit in, but I can assure you it will have a role.

[techbytes]

Seriously!


-tb-

[mr_random]

Sounds good! Do we have any rough ETA for a beta? Seems an ambitious project

[baritus]

Sounds good! Do we have any rough ETA for a beta? Seems an ambitious project

There will be more details provided very soon.

[krasnyoktyabr]

It is time to announce the Free Bank of Digitalcoin, an initiative that aims to introduce  a new concept to the crypto-world.

What is the FBD?
A community inspired and funded effort to further the usage of DGC as a store of value and monetary unit.

What services are provided?
The primary service will be hedging and profit enabling. FBD will allow people to purchase DGC at a fixed rate (set to match market price), and hold contracts that provide the option of selling back the DGC at purchase price. Deposits and withdrawals will initially be accepted in bitcoin, litecoin, and USD.

How is this useful to me?
The FBD will serve to lower investor risk in crypto-currency and allow simple, risk free cash flow into digitalcoin.

Example:
1. John Doe decides he wants to invest in digitalcoin but he can't handle downside risk.
2. J.D. contacts the FBD for a DGC quote.
3. J.D. purchases digitalcoin directly from the bank and is given the option to sell them back at purchase cost.
4. Now, if the price drops, J.D. can execute his option and sell back the coins at purchase price. If the market rises, he can sell his digitalcoin on the open market.

By removing liquidity uncertainty regarding DGC, the FBD will serve to promote and nurture digitalcoin growth.

Holy shit, that's brilliant. Absolutely brilliant.

I don't know what kind of crazy dream lead you and your team to this idea, but it completely revolutionizes the concept of crypto banking. There is no risk to anyone involved. No fees are necessary unless you are trying to make a profit, and it doesn't sound like you are. Absolutely genius. I assume there will be a built in escrow service to prevent front-end fraud in the form of BTC, LTC, or USD deposits.

If you need a few thousand DGC to get the ball rolling, hit me up. I don't have a huge volume, but I'd be more than happy to help out with this project.

[anderl]

Holy shit, that's brilliant. Absolutely brilliant.

I don't know what kind of crazy dream lead you and your team to this idea, but it completely revolutionizes the concept of crypto banking. There is no risk to anyone involved. No fees are necessary unless you are trying to make a profit, and it doesn't sound like you are. Absolutely genius. I assume there will be a built in escrow service to prevent front-end fraud in the form of BTC, LTC, or USD deposits.

If you need a few thousand DGC to get the ball rolling, hit me up. I don't have a huge volume, but I'd be more than happy to help out with this project.

Its called hedging and its common in old financial markets and physical mineral miners use it to reduce their expose to downside risk in price.

[baritus]

Additionally, the second phase of the project will enable the trading of options. So you can even sell your rights to buy DGC from the Bank for a profit.

[NickCoin]

I assume this is like a trust fund, where the money used to buy in will not be spent on anything else, so in case the Joe decides to sell back at original price, you still have a way to refund him?

[kelsey]

Sorcery: If you think about crypto-currency in the sense that each is a promise of fiat redemption, instead of assuming innate value(which really doesn't exist), you open up the opportunity for a promise exchange based on a fixed asset, fiat in this example.

any fiat as an example is seriously the single worst idea I have ever come accross on a cyrpto forum.

[baritus]

Sorcery: If you think about crypto-currency in the sense that each is a promise of fiat redemption, instead of assuming innate value(which really doesn't exist), you open up the opportunity for a promise exchange based on a fixed asset, fiat in this example.

any fiat as an example is seriously the single worst idea I have ever come accross on a cyrpto forum.

Sadly, this is Earth.


@NickCoin

There will always be funds equal to the purchases to cover all repurchases. The Bank will make enough to operate by fees and enabling trading of of the options given.

[BitJohn]

Sounds pretty good Baritus

[billionaire]

How long is the period between purchasing DGC and being able to return it should the market value drop?

It might be asking a lot for an investor to assume you are going to hold and not spend the funds from his and every other investor's purchases for the next year + and return everything if DGC crashes. Not saying you are not honest, but the potential for taking the funds and running if things go bad doesn't seem to really lessen the investment risk IMO.

However, if someone was about to invest in DGC anyway, they might as well go through your service to perhaps have some short term insurance against value drops. Especially if the fees you charge equal out to the purchase/withdrawal from Cryptsy and Vircurex. At that point there would be no reason to NOT go through you.

Again, not calling your reputation out or anything, but this is probably how potential investors are going to look at the service.