HomeNewsCryptocurrencyThe Collapse of 2017-2018 ICO Token Prices: Dragon Coins (DRG)

The Collapse of 2017-2018 ICO Token Prices: Dragon Coins (DRG)

The year 2017 will go down in the history books as a golden era for initial coin offerings. Hundreds of projects raised millions of dollars from investors and hopefuls.

That trend continued in early 2018, after which it came to an abrupt halt. The ICOs of those days have nearly all fallen short, with Dragon Coins being a prime example of how things can fall apart quickly. It is still an active project, but price-wise, it has gone through the proverbial wringer. 

A Recap of Dragon Coins (DRG)

The Dragon Coins ICO began on February 15th of 2018 and concluded exactly one month later.  In the initial vision, the team put in a hard cap of $470,500,000 of funds to be raised. While that may seem exuberant, the total money raised hit 78.5% of that target. With $320,000,000 in the bank, one would expect this project to be front and center by now, yet it clearly is not. 

Investors were promised how Dragon Coins would become a new digital currency for the gaming industry. Parent company Dragon Corp focuses on building a blockchain payment solution. Bridging the chasm between blockchain and entertainment appeared to be a smart idea at the time. The website even boasts references to Formula E, the electric version of sports racing. 

The team wanted to build a new entertainment token that would revolutionize Asia as a whole. Several strategic partners were, during the time of the ICO, ready to get on board. The list of partners on the website includes CoinFabric, Fusion PR, Expay, and several others. For all intents and purposes, it seemed to be a viable business scenario. 

The Dragon Ecosystem

Building a new token on the Ethereum blockchain can be done within a matter of minutes. Building an entire ecosystem capable of supporting this token and bringing value to it, will take years, if not longer. It is unclear if the Dragon Coins team underestimated this crucial aspect, or if something else went wrong along the line. The way they portrayed the Dragon Ecosystem had many investors and speculators excited, and understandably so.

On the one hand, there would be the Dragon Coins token, which successfully attracted investor attention. Secondly, the team aimed to build a global currency exchange, which seemingly never gained real traction. There would also be a way to spend these tokens through debit and credit cards, as well as a growing network of cryptocurrency ATMs. 

The team did build a social wallet, which is dubbed as “state-of-the-art”.  It supports the holding and conversion of DRG to Bitcoin, Ethereum, XRP, Litecoin, and other currencies. The application is still available for both iOS and Android users today, albeit it remains a bit uncertain how many people are still using it today. 

As far as the Dragon Exchange is concerned, it would appear the platform – known as DRGx.io – was initially launched. The platform still remains operational today, although its overall trading volume is far from spectacular. There are several trading pairs, including DRG/EUR, BTC/USDC, XRP/BTC, and DRG/USDC. None of these pairs note any real trading volume at this time, despite the platform providing a high transaction throughput.

Regarding the prepaid Dragon Coins card and the “global cash machines”, neither of these aspects have been fulfilled by the team. One would expect a lot more progress from a team successfully collecting $320m from investors, yet it seems the money hasn’t always been put to good use. 

The Scam Allegations and Arrest

In late 2018, Thai officials arrested Prinya Jaravijit. That individual is associated with the Dragon Coin initial coin offering. As part of his arrest, the Thai Money Laundering Office also seized $6m in personal holdings. This arrest still leads many people to believe there was never any legitimate intent regarding Dragon Coins, albeit the opinions are still divided on this front.

DRG Price Collapse 

Despite raising hundreds of millions through an initial coin offering, Dragon Coins has met its demise fairly quickly. Once the token got listed on trading platforms, its price collapsed in very quick succession. The sale price of $3.03 per token could not be sustained, and has since dropped to just $0.095. In fact, the price on exchanges never met the token sale threshold, putting investors in a hole from day one. This makes it one of the many terribly performing ICOs of 2017 and 2018. An ROI of -95.7% tells people everything they need to know about DRG . 

For a project that has seemingly all but collapsed, it is interesting to note several exchanges still allow DRG to be traded. That is not uncommon as far as ICOs are concerned, as some platforms will keep these currencies on life support for quite some time. The exchanges still trading DRG include Liquid, Sistemkoin, HitBTC, and IDEX. It only notes trading volume on Sistemkoin, HitBTC, and Liquid, albeit nothing overly spectacular. 

JP Buntinx
JP Buntinx
JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.
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