Engineered Destruction: One Year Post-ICO, This Startup is Destroying All Issued Tokens Due to Market Speculation

Crypto risk management and inheritance platform Digipulse announced the total burn of all DGPT tokens at the end of 2018, citing speculation-driven fluctuation in token price as the key driver behind the complete elimination of the Digipulse token model.

Only one year following the successful conclusion of an initial coin offering, the Digipulse platform, which aims to offer cryptocurrency investors an answer to the question "What happens to my digital assets in the event of my untimely demise?" announced that it will destroy all tokens issued.

While the platform may have been launched via an ICO intended to provide users with the ability to buy DGPT tokens at a discounted price, Digipulse CEO Normunds Kvilis states that virtually none of the investors that participated in the Digipulse ICO have allocated tokens to the service.

Kvilis outlines the decision to eliminate the token-based model the platform launched in a detailed post on the Digipulse blog, highlighting the fact that of the 320 new signups the platform received since launch, only two have actually used the utility tokens sold in the Digipulse ICO. The original goal of the Digipulse project was to address a simple problem present within the cryptocurrency ecosystem-how are digital assets distributed in the event of the owner's death? The Digipulse solution to this issue was simple, and arguably highly effective-store digital assets on a distributed database facilitated by Storj, with blockchain technology and smart contracts working in concert to distribute assets should specific conditions be met.

Further obstacles, such as the delisting of DGPT tokens from Cryptopia due to the "Profit sharing" model incorporated into the Digipulse model-intended to incentivize user participation in the decentralized Digipulse database-led to the elimination of the Digipulse profit sharing model and further token price depreciation.

There are two sides to every story, for example: out of the 320 sign-ups we've had until July 25th, only 2 people have actually allocated tokens to the service, meaning that only 2 people have actually used the DGPT token for its main purpose.

"For all its advantages, Digipulse token value fluctuates based solely on speculation, a process that doesn't support a sustainable business development. Therefore, in what appears to be a rare case in crypto, we'll be offering our investors several token exchange options before delisting Digipulse token from exchanges on December 15th, 2018.".

Digipulse's decision to completely eliminate all tokens sold to investors during an ICO is certainly a first within the cryptocurrency ecosystem.

The Digipulse ICO didn't give investors the option to invest in a speculative mechanism-rather, Digipulse offered a means of investing in the future of a project, and provided investors with the opportunity to purchase utility tokens to be used on a future platform.

By burning all issued tokens and providing premium memberships or company shares, Digipulse is arguably providing investors with exactly what was promised in the Digipulse ICO. Token holders have expressed concerns regarding the motivation behind the token burn.