Digipulse has just decided to distance itself from the cryptocurrency token revolution. This Latvian startup has become a high profile case of de-tokenization. It revealed to the world that it will delist its tokens in the imminent future.
Nomund Kvillis is the CEO of Digipulse. He shared in one of his blog posts how they decided that value takes priority over token price speculation. The CEO declared he was tired of his company’s tokens wildly fluctuating in value at the hands of speculators. It does not allow for their business model of development to be sustainable.
Kvillis announced with the revelation of 320 service signs-ups they gained through July 25th , only two had provided any tokens. He means that only 2 people were using the DGPL for the service it was created to provide. Furthermore, the CEO’s frustration stems from the only real purpose of his company’s tokens was to speculate on them.
So he has chosen to do something about it. The company is offering to change tokens in exchange for shares in the firm. Now, they are going a step beyond this. All tokens will be delisted from the cryptocurrency exchanges as of December 15th, 2018.
Digipulse Not the First Company To Walk Away from Digital Assets
The real story behind this ominous announcement from Digipulse is they are not the first firm to make this choice. They will also not be the last one to do so. Back in March, major retailer LL Bean canceled its pending blockchain project. Also, Telegram abandoned its much publicized ICO back in May. In April, Stripe gave up on its planned option to accept Bitcoin payments.
Why Did Stripe Opt to Kill Cryptocurrency?
Stripe slashed cryptocurrencies because they claimed that they are both impractical and overhyped. The sobering reality is that there is truth in these claims. Stripe should know. They were one of the early adopters of BTC payment processing dating back to 2015. Yet after a wild ride and huge Bitcoin processing volume and moves in 2017, Stripe suddenly changed direction.
They decided to eliminate the king of cryptocurrencies from their choices of payment completely. The company COO, Claire Hughes, revealed what they were thinking at the Fortune Brainstorm Tech conference back in July. She stated it was simply practical business. BTC and the blockchain payment networks are impractical, slow, and vastly overhyped, per Hughes.
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