district0x (DNT)

Do not make investment decisions based on this article – read the disclaimer before you proceed and leave the website if you disagree with it.

It is 21st of August 2017 today. This review takes into consideration investing in DNT at its current price at 5 000 satoshi

district0x – the next web?

TL:DR

I would definitely have bought districtOx at current price, or maybe after 31st of August when it probably won’t get listed on Bittrex and there might be a selloff, if I hadn’t been all in on BQX, ECC and Bela. This means that I do not absolutely believe in district0x – at least not as much as to make me sell my BQX holdings. But my next investment might include district0x as one of the cryptocurrencies to invest in (along with more NEO, and possibly Aragon which I am going to review soon).

Edit: 23 August, bought some district0x

Summary

districtOx is an ERC20 platform run on the Ethereum network. They have 1 billion DNT tokens pre-mined and sold out at an ICO that has ended recently.

They are trying to build a parallel internet backed by decentralization, smart contracts and governance by the Aragon platform. Their entities are called districts, they are like websites, but get the benefits of the platform- Posting and listings ● Search and filtering ● Ranking and reputation ● Payments and invoicing.

district0x is going to integrate with 0x, the protocol that tries to introduce liquidity and uniformity among ERC20 tokens – https://blog.district0x.io/payments-powered-by-0x-project-d291bb2e1ba0

It is going to be governed by Aragon which is, in itself, an amazing product, that I will do a separate report on. Here you can find a list of the variety of ideas for districts that have been proposed: https://blog.district0x.io/the-district-daily-july-15th-2017-4e6746190639 and some more here: https://blog.district0x.io/the-district-daily-july-22nd-2017-cd2a84e44eec and more: https://blog.district0x.io/the-district-daily-august-5th-2017-245689643f0d and lastly so far: https://blog.district0x.io/the-district-weekly-august-19th-2017-49829564ba56

Website: https://district0x.io/
Coinmarketcap: https://coinmarketcap.com/assets/district0x/
Exchange: https://liqui.io/#/exchange/DNT_BTC

General

  • Website: does it look good/presentable – one of the breeziest, coolest, most beautiful and refreshing websites I’ve seen. The distinct animations create a lasting impression, and the way they are contextual, and flow downward, revealing the story of district0x, is awesomely done.
  • Website: Does it have a roadmap for the cryptocurrency development – yes, but the roadmap is very vague in terms of mapping events to dates/time periods and in terms of marking progress – the events outlined there all have checkmarks to their left side, so what does that mean? Also, the last point “handing the project over to the token holders” combined with the fact that there is a pre-mined amount held by developers, makes me think of a get rich quick scheme – developers created a product, kept a stake for themselves, gave it away to the community to govern and then they can sell their stake whenever they decide. This is not necessarily bad, but potential investors get green faces when they smell something like this.
  • Website: Does it have a whitepaper – yes – https://district0x.io/docs/district0x-whitepaper.pdf It is well written, useful and comprehensive.
  • Website: Is the domain name and TLD good – it does the job. “io” is already somewhat of a standard
  • Website: Is it a quick wordpress template, a 2-hour html job or a custom design with lots of work, money and thought thrown at it – absolutely custom, I would imagine it was very expensive to create.
  • What new does this cryptocurrency bring to the world, what problem does it solve, what does it stand for– it is an Ethereum based interconnected, dynamic and useful alternative to the internet, I suppose.
  • How does the cryptocurrency name sound (does it sound legit and like a good brand name) – It is a horrible, geeky name. I don’t know how to pronounce it yet (I will watch some videos later on), it is a pain in the ass to spell and it will possibly erode adoption. Hopefully this will be one of the factors that will make for a buying opportunity, because of people overlooking/underestimating/avoiding it because of the stupid name. (Although Crypto is a fairly tech-savvy crowd, lots of developers)
  • Is it a PoW, PoS or PoW/PoS coin, what is the mining difficulty or APR, does it suffer from inflation – N/A
  • Who is behind the cryptocurrency – are they shady figures, or have they placed their names and pictures on the website; what is their track record and reputation; do a quick google/github research on them – what I call, an open-faces presence – the team and their names are at the bottom of the webpage. A quick google search on the co-founders shows nothing wrong.
  • What is the limit on supply of coins in circulation – 1 000 000 000. Not a fan of anything over several million. It keeps the price down.
  • Is there a link to the source codehttps://github.com/district0x
  • When was the last commit made, and how frequent are commit – 2 days ago
  • How many developers participate in the coding process – no public members, but I can see that the co-founder is committing work to the repos. I suppose that whenever the handoff of the project to the community happens, more people will get involved and the project will keep developing at a fast pace?

Exchanges and trading

  • Which exchanges (and how reputable they are) is the coin traded on, what is the daily trading volume and market cap Only obscure exchanges for now, this means that there is a price increase and DTV increase waiting to happen when (if) it gets listed on a bigger exchange. Market cap is $121,671,000, DTV $10,461,100.

  • Are there buy (support) or sell (resistance) walls – doesn’t look good
  • How does the chart look – nothing worth noting
  • Does the chart contain patterns that look like pump and dump actions or trading by bots – no
  • Has the coin spiked on one exchange after being added on another exchange – A week ago listing on binance was announced and price started going up even faster.

Social

  • Is there a Bitcointalk forum Announcement thread – yes, https://bitcointalk.org/index.php?topic=2009966.80
  • How many pages is it – 20. Very good, not a lot of people know about it, we can buy before it goes mainstream, if we decide that it is a good investment opportunity.
  • History of the coin according to the forum and general public impression of the coin throughout – User district0x , aaa10247 and JoeyUrgz seem to be district0x team members, they participate in the discussion. Other than the usual bounty hunters fighting for translation jobs, I observe the vast majority of thread participants describing the project as “interesting” or “great”. A few people complaining about the lack of activity during the crowdsale and about the way the ICO is being carried out. A valid observation was made by a couple of users, that has held true for other projects as well, that post-ICO price was lower than ICO, so this is something to keep in mind. (Possibly bounty hunters dumping their holdings have something to do with that). At the bottom of the page here https://bitcointalk.org/index.php?topic=2009966.220 is an explanation of a brief bittrex.com listing (the team stated that they’ve been asked for a $5000 fee to get considered for listing there (not a guaranteed listing) and that they refused to do so, and will not change their mind). ICO based tokens have legal problems because of USA’s SEC proclaiming them to fall under the same jurisdiction as traditional financial securities issuers. On August 9th, due to the decentralized nature of things going on for d0x, the community prevailed with 93% majority in favor of paying the fee and going through the listing process. Speculation about listing on Binance and Bittrex fueling the price. If it doesn’t get listed on Bittrex by 31st of August, there might be a sell off and a price drop. That would be a good entry point. One user made the observation that “DNT is a governence token promoting holding over selling” – this is a good trait to consider when evaluating a coin as an investment opportunity.
  • Is there a slack channel https://district0x-slack.herokuapp.com/
  • How many members in the slack channel – 5700+
  • What is the public sentiment in the slack channel – calm, constructive conversations.
  • Is there a Twitter profile for the cryptocurrency and does it post regular updates, how many followers https://twitter.com/district0x – 5500+ followers, tweets frequently
  • Is there a Facebook page for the cryptocurrency and does it post regular updates, how many likeshttps://www.facebook.com/district0x/ 170 likes. Absolutely no activity. Nothing to worry about, I see a pattern among cryptocurrencies to prefer other means of communication (slack, twitter)

Current state

  • Are there any known problems with the source code, the wallet or something else regarding the coin (transactions, mining, efficiency) – N/A
  • Is there an active development for fixes on the way – N/A
  • Has the wallet been under maintenance for prolonged periods of time on some/all of the exchanges Is any government planning on banning the coin (or similar coins) or putting heavy restrictions towards its use – problems with the legal status of ICO tokens in the USA, like all other ICO-based cryptocurrencies.

Popularity and perception

  • What does a quick google search tell us about the coin – listings, generic articles, two bullish articles one of which about 16x returns, and the other saying its an undervalued crypto
  • Are there youtube videos about the coin – other than their own channel, there are several reviews by cryptocurrency traders – all reviews are optimistic about the price
  • What is the general sentiment in the comment section below the videos (constructive, fud/hype, calling out scam etc) – people glad they bought and made their money over several times, and people expressing optimism regarding future price increases.
  • Is the coin associated with illegal/criminal activity or the dark webno
  • Similar cryptocurrencies/projects – Related projects are 0x, Aragon, Name Bazaar, Meme factory, Ethlance

Now, I am sure I’ve made some mistakes in this post or in my research. Please, forgive me, if I have, and contact me to tell me where I went wrong. It takes about 4-5 hours of my time to do a full research on a cryptocurrency, and I try to do at least 4 per week.


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