Normund Kvilis, CEO of DigiPulse – a crypto-inheritance platform which originally ICO’ed in October of 2017 – has just published a blog outlining why he will now be de-tokenising his entire business model.
Having originally minted over 20 million DGPT tokens which were subsequently sold to market for just under 3500 ETH, Kvilis has now decided that “in order for DigiPulse to become synonymous with digital asset inheritance, we need to create value with our service, rather than token price speculation.”
As a result, DigiPulse will be removing all DGPT from circulation over the coming months and will also be delisting from its exchanges, whilst offering investors with token holdings exceeding 10,000 DGPT a direct stake in the company’s equity instead. Remaining token holders are to be provided with various options relating to the use of the DigiPulse platform itself, including extended and lifetime access in some cases.
DGPT Token Has Not Been Serving its “Main Purpose”
The move has also been motivated in part by Kvilis’ observation that, among the 300+ clients on-boarded by the service since its go-live on July 8th – barely four weeks ago – only two signed up through use of the platform’s native token. The rest appear to have signed up using traditional credit cards. “Only 2 people have actually used the DGPT token for its main purpose,“ Kvilis states in his blog.
The DigiPulse development appears to be the first of its kind in the ICO space, and observing whether other ICOs pursue a similar course will likely now sit on the radar for many market analysts. “It is clear that the CEO wanted to act in the best interests of its original investors and the business, and not the token itself,” stated one investor.
Kvilis also pointed out in the same blog that the DigiPulse service is now offering a free, limited crypto-inheritance vault for all users in a bid to increase the product’s user base. Users who want to take advantage of the platform’s more extensive services will continue to have the option of paying for these through traditional payment mechanisms.