Scam Or No Scam?

A crypto project is simply a tech startup. And the chances of a tech startup succeeding is about 10%. Put another way, 90% of tech startups fail. But a crypto project also has a cryptocurrency tokenomics revenue model that is theoretical and untested, meaning that its chances of success are even smaller than a regular tech startup.

So it’s not surprising that over 90% of ICOs from 2018 failed. It doesn’t mean the crypto industry is riddled with scams and fraudsters. Yes there were a bunch of scams but just because a project failed doesn’t automatically make it a scam. I’ll bet most of those failed ICO’s were just inexperienced founders who got in over their head and who got crushed by the brutal crypto winter that followed.

Tech startups and crypto projects can fail for a hundred different reasons, ranging from management inexperience, mismanagement of funds, bad hires, poorly managed dev teams, failed marketing campaigns etc. I made all those mistakes and more. And even if you don’t make any mistakes, the market might not be ready for your product or service, or maybe the business just isn’t viable or the tokenomics model just doesn’t work. Running a tech startup or crypto project is an exercise in constantly running out of money and trying to find more. Many simply run out of money. But they’re not necessarily scams.

But in the world of crypto you don’t get the luxury of a best effort failure. If your ICO project fails it can be down to one reason only: You’re a scammer.

Your community who spent their hard earned money on buying your tokens which are now almost worthless see only the large amount of money that you raised and cannot imagine how so much money could be spent. You must have pocketed at least some of that money, maybe most of it. 

They organize into dedicated Telegram groups with a clear hierarchy and leadership depending on the level of their losses in the project or whether they have some inside info because they were previously employed there years ago before they were fired. And then they spend years talking about how much you suck.

I know this because I have a failed ICO project behind me called Digitex. There are Telegram channels dedicated to how much I suck. 

During my Digitex journey I made mistakes and I had some big victories. After raising over $5 million in 17 minutes I took the market cap of my token, DGTX, to over $160 million, due to a highly successful viral marketing campaign that got 1.5 million signups on a waitlist. As all the other ICO projects crashed and burned in the crypto winter of 2018, Digitex became the 61st most valuable cryptocurrency on CoinMarketCap. 

But ultimately we were unable to deliver a quality software product on time. Also, our revenue model of minting and selling DGTX tokens instead of charging transaction fees just didn’t work. It had always been a theory and everytime we minted and sold tokens the DGTX price crashed. 

So the great Digitex experiment failed. We had tried to create a zero-fee cryptocurrency futures exchange that minted and sold DGTX tokens instead of charging transaction fees to traders, but after over 4 years of trying we finally conceded that it wasn’t working when the value of DGTX had gone so low that we couldn’t sell anymore and we finally ran out of money. It just took a long time to fail because I refused to quit and continued selling DGTX tokens for as long as I could to continue funding operations.

It is this continued selling of DGTX tokens that earned me the reputation of being a scammer amongst a very vocal element of the Digitex community. Everytime I minted DGTX they would post the etherscan links into their retarded little TG groups and breathlessly proclaim that I was at it again. 

But my role as Founder & CEO of Digitex was to make the project work and not quit and to do everything I could to succeed. And I needed funds to continue paying our team so that we could continue building, operating and marketing Digitex. Minting and selling DGTX is the company’s stated revenue model, as stated in the first sentence of Digitex’s December 2017 whitepaper, so it was my duty to mint and sell DGTX to keep the company going.

To the people who accuse me of minting and selling billions of DGTX tokens this year I say yes that’s exactly what I did and that’s exactly what I should have been doing. 

Another accusation against me is that I was selling DGTX tokens but using the money to fund development of the Blockster brand. To that accusation I say the same thing as above, yes I was absolutely doing that because in my opinion that was the best way we could support Digitex. 

Last year we had determined that we needed to build a solid source of crypto traffic so that we could better market the Digitex exchange, and Blockster was originally conceived as a tool for marketing Digitex. The blanket ban on crypto advertising across all the social platforms and Google made it very hard to attract and retain users for Digitex and we needed to get quality traffic.

Therefore, building Blockster was absolutely a good and proper use of Digitex company funds, and as the CEO and HMFIC and owner of Digitex I’m within my rights to do that. If I want to spend company funds on a long term marketing solution such as Blockster there’s nothing illegal or wrong about that. You may not agree with it but that doesn’t make me a scammer.

I’m just really happy that we started developing Blockster when we did. Digitex the exchange didn’t make it – we officially closed it down last month after over 4 years – but at least we have the side project that we started as a marketing tool. And the good news is that I think Blockster could be bigger than Digitex could ever have been. 

Marketing a crypto exchange in this saturated exchange market without money for liquidity or for paying affiliates was a non-starter. Every Digitex hater believes that he would have made a huge success out of Digitex but they are wrong. Fact is that amongst 1000 exchanges, Digitex with its flawed revenue model and non-existent budget for liquidity and marketing wasn’t going to make it. But Blockster is a different story. 

Blockster is a crypto pop culture and crypto lifestyle brand, covering the intersection of crypto with celebrities and fashion houses and mainstream brands and doing it with an edgy, underground vibe. Blockster is just one good partnership with a celebrity or one viral marketing campaign away from bursting onto the scene and taking over the crypto lifestyle niche. And we’ve got a couple of very exciting partnerships lined up right now. Blockster can become the highest traffic crypto publication in the world. 

Blockster’s success will directly benefit DGTX token holders. They helped pay for Blockster’s development and now that we’re on the verge of finally achieving success with the Blockster brand, it’s only right that DGTX token holders share in that success. Admittedly, Blockster was supposed to play a supporting role in the Digitex story but things changed and we adapted. Adapting to new conditions also does not make me a scammer. I’m as dedicated to making it right for all DGTX token holders as I’ve ever been and whether that’s achieved through Digitex or Blockster doesn’t change that. Blockster was created to help Digitex and that’s exactly what it’s doing. 

Blockster also has its own native cryptocurrency, called the Blockster (BXR) token, which will also directly benefit from Blockster’s success. I’ll explain more on the exact roles of DGTX and BXR in the Blockster ecosystem in an upcoming article. 

Regarding my character and whether I’m suited to make Blockster into a success or not, you can look to my time at Digitex for reliable pointers. You can conclude the following:

My Cons:

  • I suck at software development. 
  • I hire the wrong people and don’t manage them properly. 
  • I have a particularly large group of haters. I don’t communicate with the community which leads to all kinds of nonsense being talked about me in the TG echo chamber which is never refuted.

My Pros:

  • I don’t ever quit and I don’t buckle under pressure. I’ve held it together for over 4 years and I’m still here trying to make it right for the Digitex ICO buyers and I’m not going to quit until Blockster is a success. 
  • I’ve had several successful viral marketing campaigns that took the market cap of the DGTX token to over $100 million on 3 separate occasions – first in the crypto winter of 2018, then again in 2019 and again in 2020. I plan to do it again in 2022 for DGTX and BXR.
  • I’m very driven to succeed and my definition of success does not include leaving my DGTX ICO buyers with nothing while I’m living large as the owner of a billion dollar crypto lifestyle brand. Me and DGTX are inextricably linked. 

I’ve learnt my lessons from failed dev projects and Blockster is now purposely a very simple product based on content creation and internet marketing without any complex development needed. Blockster will become a worldwide movement of millions of people, all proudly associating themselves with the Blockster brand and the blockchain hustler ethos that it represents. And many of them will be staking DGTX and BXR to gain privileged status and special access to events and people and products within that Blockster community.

So not everything that doesn’t make it as expected is necessarily a scam. There’s a lot of sad little people in Telegram who spend years stuck in the past complaining about how they lost a couple of grand to the evil Adam Todd and his 4 years-in-the-making exit scam. Seriously guys, move on with your life. I’m sorry it’s taken this zig zag journey but take it like a man and stop whining about it. The Digitex story is not over yet and it’s not a scam. 

Join the Blockster movement and become a blockchain hustler. Embrace the blockchain hustle, don’t be afraid to fail and do something great with your life. I’m just getting started and I’ve learned so much over the last 4 years that massive success feels like it’s just within my reach. Maybe the guy you should be backing right now is the guy who has already made all the mistakes and who has taken the hits and been ridiculed and ostracized and who didn’t quit no matter how hard it got to keep going and who has committed to seeing this through until it damn well works. 

  1. Well done I trust on you Adam don’t quit dgtx is a brand. Just make some good decisions. Marketing and active on social media sites. Start completition ask for suggestions to community

  2. That’s a darn good attitude. Keep it up, I’m sure you will make it. I am also a hustler like you and believe that when you focus on your targets and keep working on them, success will materialize. The success is ours.

Leave a Reply

Your email address will not be published.

Related Articles
Read More

The Concise History Of Web 3.0

The web has become an integral part of our life: it both defines the way we communicate, perceive, and consume information – and is defined by it. Of course, during this time, Lee's idea has transformed greatly. So far, we've witnessed two eras of web...
Read More

Brave Celebrates The Launch Of A New Wallet With A Massive Giveaway

Brave Browser has finally completed the development of its native cryptocurrency wallet. The project is celebrating the wallet’s launch with a giveaway featuring NFTs and popular coins. The giveaway will last from March 8th until March 14th, and randomly chosen winners will find golden tickets...
Read More

Token Of The Freedom: On Snowden’s NFT

Edward himself prefers "whistleblower", which is probably closest to what he did: exposing a case of abuse of human rights for privacy. The same year, Snowden was charged with espionage and theft of government property, lost his US passport, and found asylum in Russia, where...