Bermuda-based In connection with the sale of Cryptobontix to SION Trading FZE of Dubai, Arbitrade Ltd. said today in a press release that it has transferred its gold control agreements to SION Trading FZE of Dubai. This was done in conjunction with the sale of Cryptobontix. Following the recent completion of the sale of Cryptobontix to SION Trading FZE, this announcement was made. It is one of four digital currencies that are managed by Cryptobontix and are said to be backed by gold. One of these currencies is called Dignity. One of the very first digital currencies ever developed was called Dignity (DIG). On July 25, it was announced that a new holding company with the name Dignity Holdings LLC would be in charge of defining the future course of the Dignity Coin. This new firm would be responsible for making decisions on the future of the cryptocurrency. In addition to the information that was provided in a press release issued by Dignity Holdings on July 25, it is unclear what the specific nature of the commercial connection is between SION Trading FZE and Dignity Holdings LLC:
Obtaining a secure keeping receipt (SKR) for 395,000 kg of gold is yet another technique via which the firm will continue to maintain its partnership with SION Trading FZE.
When the owner of an asset entrusts that asset to a third party, most commonly a bank or other financial institution, and gets confirmation from the agent that the item is being “safely held,” the owner is in possession of what is known as a “Safe Keeping Receipt.”(or “SKR”). The individual who is legally responsible for the asset has the option of sending this particular form of verification to a third party that is situated outside of the organization. A number of individuals who have invested in Dignity tokens have expressed their concern with the lack of audits supporting the firms’ claims to the gold. These individuals have stated their concerns publicly.
The following is today’s press statement from Arbitrade, which has been written in italics; this is followed by an analysis of the situation and their stance written by the author, which has been written in bold:
Arbitrade Ltd. confirms that in conjunction with SION Trading FZE’s (“SION”) purchase of Cryptobontix (“Cryptobontix”) from Troy Hogg, Arbitrade has also terminated its gold trading agreements with SION and divested itself of all interests in the gold that was provided to it by SION under such agreements. This was done in order to comply with the terms of the transaction involving Cryptobontix and SION Trading FZE. This is done so that SION may use the gold to support Cryptobontix’s digital asset tokens, the most well-known of which is the Dignity token. This is why this practise is carried out.
This press release did not provide us any new information that we did not already know. It’s probable that this action was taken in order to make it very clear that Arbitrade and the person who controls it, Troy Hogg, are no longer a part of the Dignity Coin movement.
In the beginning, an organization based in Ontario and given the name Cryptobontix developed a group of digital asset tokens with the intention of later having them backed by precious metals. These tokens were given the names Dignity, Namaste, Orectic, and Honor. These tokens are also referred to as the “Ingot Tokens.” As soon as Arbitrade was established in Bermuda, Cryptobontix, a company in which Arbitrade has significant ownership, was expected to be merged into the Arbitrade group. Additionally, the transfer of Ingot Tokens was intended to take place as part of this merger. However, this did not go according to the plans that were made. Arbitrade entered into a collaboration with SION in order to realize this objective and ensure that gold would be readily available to serve as a backing asset for the Ingot Tokens.
In order for Arbitrade to go through with the acquisition of Cryptobontix, one of the most important conditions that needed to be met was that sufficient funds needed to be created via an Initial Coin Offering. If this need is satisfied, then the agreement will be considered complete (“ICO”). The intended initial coin offering (ICO) was scrapped, the purchase of Cryptobontix did not go through, and the Ingot Tokens were left in Cryptobontix’s exclusive possession as a result of regulatory hurdles and permission delays that are plaguing the Fintech Industry in Bermuda and influencing the ICO market more generally. These issues are affecting the ICO market in general. All of these occurrences were caused by the difficulties in obtaining approval and the red tape involved in the regulatory processes. Because of this, Arbitrade has never owned Cryptobontix and has never been responsible for the Ingot Tokens that have been distributed by Cryptobontix. Moreover, Arbitrade has never been liable for any of these issues. The following cryptocurrencies are represented here: Dignity (DIG), Namaste (NAM), Honor (HNR), and Orectic (ORECTIC) (ORE).
Again, this may be brought up so that it is evident from the beginning that Troy Hogg, the creator of the company, and not Arbitrade, Inc., held the legal title to Cryptobontix. This may be brought up so that it is clear from the beginning that Arbitrade, Inc. This is something that has to be put in writing as soon as possible.
The negotiations for SION to transfer all contractual obligations related to the gold to Cryptobontix were in sync when SION saw a business opportunity in the Ingot Tokens and indicated their desire to acquire the shares in Cryptobontix. In other words, the negotiations for SION to transfer all contractual obligations related to the gold to Cryptobontix were in sync. This was owing to the fact that Arbitrade did not have a necessity for gold in regard to any exchange, mining, or other economic activity that it could do in the future. Cryptobontix is now in charge of managing all of Arbitrade’s contractual and commercial commitments to SION as a direct consequence of this turn of events.
The purchase of Cryptobontix by SION is excellent news for owners of Dignity because it indicates that SION will start disclosing information on the quantity of gold backing and redemption opportunities, and it also indicates that other announcements will be made in the near future. Both of these developments are excellent for owners of Dignity.
To the best of our knowledge, Dignity Holdings LLC has not made any public pronouncements about the gold backing of DIG or the various redemption options that are now available. The DIG community as a whole has been holding their breath in expectation of this update, however as of 7:00 am Eastern Standard Time (EST) on August 7, 2019, no information has been made publically accessible. Members of the DIG community have been holding their breath collectively.
