Dacxi Coin 2023 — Year in Review

Dacxi Coin 2023 — Year in Review

From the desk of CEO, Ian Lowe

Key points:

• Public launch of Dacxi Chain
• Development plan — progressed from Stage 2 to Stage 3
• Positive developments for equity crowdfunding regulations
• Listing on P2B Exchange — listed on four Tier 2 exchanges
• $3 million average month trading volume
• Volatile price action

2023 was a seminal year for Dacxi Coin due to it also being the official public launch of Dacxi Chain (in May 2023). The concept of using blockchain/crypto technology to power a global innovation funding solution was first imagined way back in the mists of crypto history in 2017. It has taken until 2023 for the market to develop where a project such as Dacxi Chain can be publicly launched.

Fortunately, time for the market to evolve provided an opportunity for our thinking to evolve also. In 2022, we determined that the optimal solution was not to become an equity crowdfunding provider ourselves, operating in multiple markets around the world, but instead to create network infrastructure linking established, licensed equity crowdfunding companies around the world into one global network.

This model sees us working side by side with existing equity crowdfunding providers rather than competing with them, while also creating for ourselves an even larger market opportunity, the ability to scale faster and become harder to compete with. We believe this could become a $100bn annual market.

From this came the first stage of development in 2022, where the work was done to build prototypes for three of the four technology layers required to create an alpha version of the Dacxi Chain platform.

Stage two then kicked off in 2023 with five clear objectives; (1) secure two or three platforms from multiple markets and start to collaborate with them, (2) complete a minimum viable product (MVP) through which a first deal can be executed, (3) complete our first partner integration into Dacxi Chain, (4) execute a first deal via the MVP and (5) claim global thought leadership. I’m pleased to confirm we successfully completed four of these five objectives by August 2023.

As we worked with our partners on the fourth of our objectives (execute a first deal), delays emerged as two of our three partners identified for the first time a potential conflict of interest. The potential for conflict was that the first deal was intended for Dacxi Chain itself, which is now also their business partner in a relationship through which they commercially benefit. For several weeks we looked for ways around this potential conflict, none of which clearly answered the question.

Today, Dacxi Chain has a clear strategic advantage in the form of being first to market. ‘First to market’ is of enormous value when building any network, and as delays to manage our partners’ potential conflict of interest looked to be ongoing, we decided further delays were unacceptable. And so the decision was made to preserve our first to market advantage by completing the investment round privately and focusing all our energy on stage three…building the network.

Strategically, this was unquestionably the right decision for the business, and I’m pleased to say stage three is now well underway. Furthermore, I’m delighted to confirm we have had additional partners join and the network is growing. I’m very much looking forward to providing regular updates sharing our progress, starting early next year.

Building the network of participating platforms is the key to securing our market position, creating deal flow and achieving a Tier 1 exchange listing for Dacxi Coin. It is also the key to creating significant and growing demand for Dacxi Coin.

Meanwhile, executing a first deal remains a very high priority for us, and we are working with partners existing and new to achieve this as soon as possible.

Equity Crowdfunding Regulations

2023 saw some hugely positive developments in the way equity crowdfunding is regulated. In particular, the EU tabled a common framework for all 27 EU member states that would allow all EU based equity crowdfunding platforms to transition from local regulations (which are essentially different across EU countries), to a single EU framework.

Harmonising regulations across different jurisdictions is the most complex part of the Dacxi Chain solution. Having all platforms across 27 countries migrate from different rules to a single set of rules makes our task of harmonising deal management across multiple markets significantly less complicated.

The timeframe in which the new EU regulations become effective was November 2023, and so as we progress against our Stage 3 objective of building the Dacxi Chain network, we have given increased focus to securing partners in Europe. I’m pleased to confirm we’ve had success in Europe accordingly, details will be shared in our regular updates commencing in the new year.

Dacxi Coin Usage

The primary use case for Dacxi Coin will be realised in 2024. Dacxi Coin has also played a vitally important role to date, and has been used in valuable ways including attracting and retaining world class talent, development incentives, fund-raising and other non-operational uses going back as far as 2018. Many of you will know that in the world of blockchain, projects are often well developed before coin usage grows.

Coin Price

In 2023, the Dacxi Coin price rallied, flopped, rocketed, flopped. We are back at where we have been three times before and, like everyone, it is for us a source of deep frustration. This situation is also commonplace in the crypto world and in particular for a project at our stage of development.

In the crypto world, Dacxi Coin is what is known as a ‘moon coin’. A moon coin is a coin that is positioned to ‘go to the moon’, ie. the potential for price / value to greatly increase.

We believe that Dacxi coin is well positioned for the classic ‘Moon Coin’ development cycle where the next generation of high value potential crypto currencies become more strongly supported.

We saw this in the previous four year growth cycle. By late 2020 / early 2021, it became clear the market was excited about the Web3/DeFi infrastructure sector covering general blockchains, oracles, etc. Coins like Cardano, whose coin prices had collapsed by up to 95% through lack of interest, suddenly exploded with interest. Newer Moon coins in this sector like Solana grew by over 300 times. Binance coin was relatively ignored until it repositioned as ‘DeFi Infrastructure’ and its price spiked 30 times in Q1 2021.

For those of you focused on the Dacxi Coin price, the key points on price to keep in mind are:

• Significant trading volume is a key driver of price
• Significant trading volume is only available on Tier 1 exchanges (of which there are less than six)
• Whilever trading volumes are low, the price can be pushed around by trading bots and a small number of traders trading small volumes
• Greatly increased demand will develop as the Dacxi Chain network grows and deal flow builds with it

Trading Volumes

Dacxi Coin is traded on the Wealth99 platform and in 2023 grew from three to four external exchanges. The four external exchanges are Tier 2 in size and deliver approximately $100,000 per day or $3 million per month of Dacxi Coin trading activity.

The exchange to list us most recently — the P2B exchange — has resulted in noticeably improved volumes in Q4. Our primary challenge with exchanges remains trading bots and smaller traders who slowly push down prices in quiet trading periods, as we saw in the second half of 2023.

Our focus in 2024 is to achieve a Tier 1 listing. We have completed our application yet the development of the Dacxi Chain project is clearly critical in the Tier 1 exchange application assessment process. We know Tier 1 exchanges are looking for strong projects with credible use cases and Dacxi Chain / Coin has one of the largest potential coin projects not yet widely traded.

Summary

Aside from the disappointment of the coin price fading in the last half of the year, 2023 was otherwise a milestone year. We secured our P2B exchange listing which is already supporting increased trading volumes, which in turn supports the price.

Most importantly, we completed Dacxi Chain Stage 1 and 2, and with it our ability to now laser focus on Stage 3 — building the network. We have made good progress already and remain committed to sharing regular updates on our progress starting early next year.

Meanwhile, equity crowdfunding regulations in Europe have evolved in our favour.

And we are particularly well positioned for a ‘moon coin’ development cycle where the next generation of high value potential cryptocurrencies are revalued.

Wishing you and yours a peaceful and happy holiday season.

Yours faithfully,

Ian Lowe

CEO, Dacxi Chain