The collapse of the third-largest crypto exchange FTX has shaken the faith and confidence of crypto investors in centralised custodian wallets, especially in terms of their security and safety of investor wealth.
FTX filed for Chapter 11 bankruptcy protection in the US following its spectacular collapse that has shaken the whole industry. The US bankruptcy proceedings involve multiple FTX group companies with more than 100,000 and possibly over a million creditors.
Prior to its collapse, FTX had a reputation for stability and its chief Sam Bankman-Fried projected an image of respectability and strength by buying stadium naming rights, donating heavily to US politicians and acquiring crypto companies that were struggling with liquidity issues.
These measures fooled even veteran investors into thinking that FTX was safe to put their money into. Now, the FTX contagion has left many of them wondering about how they should store their crypto assets, since it shattered their trust in custodian wallets. It is here that the importance of segregated and non-custodial decentralised wallets is felt and needed.
DM Global is building a personal segregated wallet wherein only the user can have access to it, after setting up and keeping the master password safe. It claims to be a revolutionary ecosystem, which will feature crypto transactions, banking and invoicing, international remittance, an internal exchange between crypto and fiat currencies and much more.
As of now, DM Global is the only entity to allow its customers to keep their assets in their own wallet on the blockchain, which is the emblem of Decentralised Finance (DeFi). For context, nearly 99 per cent of online brokers, that allow users to invest in crypto currencies, collect the money and store them in their corporate wallets on the blockchain.
DM Global wants to ensure that anyone and everyone can have access to their funds and be in complete control of them through specially designed cards
DM Global offers solutions that are aligned with the future of digital payments through complete digital transactions, digital infrastructures and a decentralised ecosystem that guarantees security and stability.
Five points for the future of digital payments
Some of the exclusive technological hardware of DM Global provides unlimited access to fully digital technologies. For instance, the POS and ATM terminals will support the DMG platform with multi-payment and multi-currency options. This effectively means that users all over the world will have the ability to be part of the banking system existing in the developed world, even though no banks are involved.
While most Silicon Valley start-ups focus on their app installations, DM Global focuses primarily on the people who are not privileged or fortunate enough to have a few-hundred-dollar mobile device in their pocket to even install the app. DM Global believes that the ease of use and security will become the de-facto standard over time, thereby paving the way for global adoption of crypto currencies.
DM Global will also provide specially designed cards, which come in the standard credit card format but will also have a private key on them that can be accessed through the chip, magnetic stripe or NFT. These cards will enable users to conduct transactions internationally, without any expensive intermediaries or time zone restrictions.
In this context, it may be mentioned that DM Global has turned the conventional concept the other way around. It plans to issue cards with virtually no money instead of attempting to instal thousands and millions of POS terminals across the world.
The cards will enable people of any financial background easy access to their own wallets through any single POS terminal in the world. The operators of the POS terminals will be incentivised to have one, as it will generate revenue through the blockchain transactions that occur on the individual machine, thereby creating a passive income stream to those who want to revolutionise the international payments space.
The DMG solutions are aligned with the future of digital payments in the following ways:
- Unlimited access to products and services.
- Easy and fully digital transactions, including POS and ATM and multi-platform payment applications for crypto currency exchange.
- Digital infrastructure
- DMG has created a decentralised ecosystem using blockchain, which ensures security and stability. The network will be active 24×7 and throughout the year without any interruption.
DMG Reserve Fund
One of the biggest problems with the mass adoption of the crypto currencies is the high volatility of the market and the lack of reserves that guarantee a minimum value in the case of a market collapse. The low traded volume of crypto currency allows some large capital investors to manipulate the prices.
The solution of DM Global to this problem is a physical asset of intrinsic or monetary value. In order to make this possible, DM Global has created a self-sustaining reserve fund through its POS and ATM payment network, thus supporting an increasing value to currency. The sums collected will then be invested to give more and more strength to the project itself and to the currency. The reserve fund will be replenished by POS and ATM transaction fees.
Use of Distributed Ledger Technology
Networks powered by distributed ledger technology are different from conventional payment networks because, as the name suggests, it is distributed and decentralised. Each node has a copy of all the blocks stored in the network and the communication between nodes is multi-directional. All members of the network validate the registered blocks.
Therefore, if one computer on the network is disconnected, all other computers maintain an identical copy of the information. Post execution of the transaction, a request from the transaction log is sent to the main network. The transactions, in this case, are grouped with other transactions from other users and stored in a distributed sequence.
With the network being decentralised, the information is not owned by any private or government institution. Every computer running the software has a copy of the entire registry book. Besides, synchronisation between computers on the network is instantaneous and automatic.
Distributed ledger technology or DLT in blockchain offers new avenues for incorporation of cryptocurrencies in mainstream finance and potentially disrupt how payments can be made for goods and services.
The health of all financial institutions depends on their fundamental strengths and reputation. In the case of crypto firms, the high volatility of the market and the lack of reserves that guarantee a minimum value in case of market collapse have prevented mass adoption of crypto currencies. The low volume traded with crypto currencies allow some large capital investors to manipulate prices.
FTX is the latest epitome of that menace. FTX, as a crypto exchange, was a real business but the absurd valuations attached to it were largely built on fantasies about the worth of crypto assets.
Of course, it made its founder and CEO, Sam Bankman-Fried a multi-billionaire in the process, but his stake in FTX has no value at the moment. In a matter of days, the valuation of FTX plunged from US $32 billion and dragged down his net worth from US $16 billion to near zero.
As mentioned in the beginning, the collapse of FTX shook the volatile crypto market, which lost billions of dollars in value and dropped below US $1 trillion. The corollary of the rapid decline and collapse of FTX may impact crypto currencies in future unless some drastic and revolutionary steps and protections are taken. The broader consequences of the FTX fiasco may take time to unfold and may deter some investors, who are already cautious because of concerns about stability and security.
DMG’s solution to the problem of stability and security is through supporting its platform with a physical asset of intrinsic or monetary value. In other words, the DMG Reserve Fund, which will be fed by POS and ATM transaction fees, thereby making it self-sustainable.
The mission of DM Global is to give all fiat or digital currency holders the possibility to use them in their daily life, thanks to the former’s simple and practical payment systems. It will make it easy to purchase services, goods or the desired crypto coins and enable users to own a multi-currency wallet containing fiat as well as crypto coins through one single tightly integrated decentralised platform.
The global cryptocurrency market and the community have grown so much and so fast within a very short period of time that it would be a waste of time to convert their funds into fiat currencies before making any transactions – big or small. Besides, the available data also point to the enormous potential that still remains untapped.
To address these and other issues, DM Global has decided to create its own blockchain network in order to have a decentralised ecosystem that guarantees security and stability. The network will be active 24 hours a day and 365 days in a year without interruption or corruption.
With time, the terminal can enable many new options and features that were unprecedented to date. To give some examples about the possibilities of the terminal, trading in tokenized shares and stocks, issuing and receiving secured credits, international remittance at sloe-t-zero costs are all now possible on the DM Global ecosystem. Hence, DM Global is pioneering multiple ways to revolutionise the current payment system across the world.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
Earnings Disclaimer: The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.