NO VIEWS EXPRESSED IN THIS POST ARE INTENDED AS FINANCIAL ADVICE.
So as you may already know, DavorCoin today announced the closure of their lending platform. You can read their statement below as well as my plan going forward with DavorCoin.
Statement from Davor.io
We have a very important announcement to make, probably the most important one since our beginning.
We have carefully analysed the current situation of the Davor project, of lending programs, of the cryptocurrency market and of legal issues regarding lending platforms and cryptocurrencies in general.
There is no doubt for us that the DAV value has been negatively affected by our lending program because the crypto-environment has dramatically changed recently. We did everything possible to protect our platform and our amazing community.
However, DAV price still went from $180 to $0.5 in 20 days.
As a result, we have decided to change our strategy and to end our lending program that has become the only reason why DavorCoin is decreasing in value.
Most users are no longer interested in investing in lending platforms, moreover, they are increasingly concerned about legal issues.
And there is one thing we don’t want which is to offer a different service to users depending on which countries/states they are coming from.
We will release today all lending packages we have and every user will be credited in his account the number of DAV he placed in his/her lending package plus a 10% bonus.
The staking pool will work as before.
There will be certainly winners and losers in this project, as in many high-risk investments. This is also true for the whole cryptocurrency market.
Our main objective now is to bring DAV price where it should be. We are going to put our efforts in transforming DAV into a strong cryptocurrency.
We have many steps ahead that could boost the DAV value.
- High performance crypto-to-crypto trading platform. DAV will be used as trading fee.
- Instant exchange to altcoins: you can exchange instantly DAV to many popular altcoins.
- Partnership with crypto debit card issuers so you can use DAV to make payments.
- Total improvement on the DAV blockchain: to support SegWit, Lightning Network and Atomic Swap, which means DAV could be accepted at thousands of Bitcoin-accepted merchants.
- Crypto shop: You can use DAV to purchase for popular gift cards (eBay, Amazon, iTunes, Steam…)
These are only part of the list: we’ll soon release the full list of what we plan to do for the rest of 2018.
We know this is a big turning point of Davor, but the crypto-world is changing very fast. Therefore it is important to adapt ourselves to remain competitive.
We’re confident that this is the right way and we’re just at the beginning of a bright future. We hope to receive your full support and altogether we can bring Davor to the next level.
Thank you.
The Controversy
Many DavorCoin users are angry that their active investments have been released back to them at the same DAV amount that was initially invested. For example, if you had invested $1000 on January 15th 2018 when the value of DAV was $175.86 your investment would have been 5.68 DAV. Today that same 5.68 DAV value is worth $0.17 (based on $0.03 DAV value).
What is the future of DavorCoin?
As DAV will no longer be a lending coin it will operate as a regular cryptocurrency. I think that the ability in future to use DAV to pay for gift cards such as Amazon, iTunes & Steam will give the currency a new purpose that could result in an uptake in DAV and subsequently an increase in its value.
What will I be doing with my DAV balance?
As I still feel that DavorCoin has a future use I will be staking my DAV along with the returns this staking gives (up to 10% per month). This will allow me to grow my DAV balance while the controversy surrounding the release of all investments has settled and until the market stabilises at which point I will re-evaluate my position.