What is DGPayment (DGP)?
Cryptocurrency has been around for 13 years at this point. But that does not stop new projects from popping up that basically reinvent cryptocurrency projects (read: Bitcoin) that have existed for over a decade.
One such project is DGPayment. This project somehow generated a decent amount of attention on social media and even had a market cap of nearly $500,000 at one point. This article will cover everything you need to know about DGPayment and whether or not it’s a good investment.
What is DGPayment?
DGPayment is a cryptocurrency project on the Binance Smart Chain that claims to be in the process of launching “the world’s first cryptocurrency with advanced blockchain technology.”
“Advanced” blockchain technology has existed for nearly 13 years at this point, so we really are not sure why they are talking about with that statement. The whitepaper claims that the DGPayment wallet will make payments fast and easy, but that already exists with the Lightning Network on Bitcoin. There are also a handful of other projects that offer something similar.
Basically, DGPayment is a project aimed at cheaply sending value across the network. There’s nothing really special about this project.
The Problems With DGPayment
There are a lot of problems with DGPayment. We will just be upfront and say this project looks like a scam at the absolute worst and a project with no chance of success at best. Anyway, some of the problems include the following.
Nothing Unique About The Project
The first problem we have with DGPayment is that there really is nothing unique about the project. It’s a payment project on the Binance Smart Chain. There’s just nothing special about it.
We will put it this way. Why would someone use DGPayment, a project that has basically no users, when they could use something like Lightning Network on Bitcoin (or just Bitcoin itself) where hundreds of thousands of people use it?
There’s something in economics called the network effect. This effect refers to the increased value of a good or service when more people use the good or service. The network effect in relation to crypto states that the value of a cryptocurrency increases the more people that use it.
No one is using DGPayment, so it’s a worthless token.
Another issue we have with DGPayment is that it has a horrible website. It looks like a template site you can buy for a few hundred dollars online, which is already a bad sign. The writing on the site also has a lot of grammatical errors.
The grammatical errors are understandable because the team appears to be Indonesian. However, a project should still have someone proofread the copy if they plan on advertising to an English speaking audience.
It’s just a bad first impression to have a low quality website with low quality writing on it. It really does give the impression that the project is nothing more than a cash grab.
Is DGPayment a Good Investment?
No, DGPayment is not a good investment. Experienced cryptocurrency investors generally look for projects that have some sort of innovation. And we simply do not see any innovation with this project.
The project does give off the appearance that it’s somewhat serious when glancing over the whitepaper. But upon closer inspection the whitepaper is simply rewriting basic information about cryptocurrency. There’s no unique solutions or groundbreaking ideas in the whitepaper.
It’s just a lot of buzz words.
Now, from a price perspective the outlook of DGPayment also looks fairly bleak. The price chart looks like the following:
That’s the price chart of a project that rugged. Surprisingly, the project allegedly has a 24 hour trading volume of over $1 million USD. It’s important to note that it is possible to artificially increase the 24 hour trading volume, which is likely the explanation for the high trading volume.
To summarize, DGPayment is not a cryptocurrency worthy of an investment. You will most likely struggle to sell any tokens that you purchase.
To wrap things up, you should avoid cryptocurrencies that do not offer any unique solutions. They might make a good case in their whitepaper, but the reality is that projects like this never make money.
This is not 2009. A cryptocurrency project needs to have truly innovative ideas if it is to have any chance of becoming successful, even then it’s extremely difficult for a crypto project to gain traction in the current crypto environment.