Altcoin Spotlight: Divi (DIVI) – One Click Masternodes for the Win

Here we have another small-cap altcoin that’s been making positive moves in recent weeks, while operating outwith the mainstream spotlight. Divi (DIVI) is ranked around 350th by market cap, and recently doubled in price between July and August.

Let’s take a look at Divi before it moves any further.

What is Divi?

Divi comes bearing the tagline ‘Crypto made easy’, and backs this up by offering a one-click masternode and staking system. Other nifty features include the ability to send currency to an email address, or person’s name, rather than the typical 24-36 string number we’re used to. In its attempt to become a ‘bank in a box’ Divi also offers numerous different types of payments (subscription, auto-splitting), and comes with an in-built tax-sorting service.

Ultimately, the main draw is the prospect of one-click masternodes. Anyone who has attempted to set up a masternode will know that more than some technical knowledge in required. Divi’s documentation says masternodes can be set up on a physical home computer, or even in an online, cloud-based platform, with literally one click.

The roadmap shows work afoot to make Divi interchangeable with Bitcoin (BTC), via atomic swaps, SegWit activation, and support for certain BIP’s (Bitcoin Improvement Protocols).

Internet readers tend to squirm whenever they encounter a ‘tiered system’, and indeed Divi’s masternodes do come in various tiers. From ‘Bronze’ to ‘Silver’ to ‘Gold’, each category has a more expensive buy-in than the last, and in turn, produces more profits from block rewards.

The gold tier costs 1,000,000 DIVI to run, which at current prices equates to around $6,000.

Team and Recent Price Movement

The team includes a veteran Microsoft lead developer in Michael Greenwood, and is advised by former Yahoo chief Tim Sanders. In what may be a first, the team’s advisory board also includes a science fiction novelist, ‘futurist’, and recent winner of the Philip K. Dick award for best sci-fi novel, Ramez Naam.

CoinMarketCap tracks data going back to October 2018 for DIVI, when it was trading at just under $0.01. As the market descended into the crypto winter, the coin price subsequently lost 85% of its value over the next few months.

Divi (DIVI)

By February the rebound was in, and since then DIVI recorded over 300% growth – including 108% growth in the past month. As with the recently covered MultiVac (MTV), these gains came while Bitcoin and all the major alts were in free-fall.

Don’t Call Me a Security

Divi originally launched as an ERC-20 token in September 2017. By June of 2018 the Divi mainnet had been set up, and the old DIVX tokens were swapped out for the mineable DIVI coins. Unfortunately for U.S based investors, a KYC/AML program was initiated as part of the token swap in order to exclude U.S residents. The documentation states this was to appease the SEC.

The project’s lightpaper attempts to stay ahead of the SEC in other ways, specifically by presenting its case for the defence before an attack has been made. The lightpaper notes:

“DIVI also should not be classified as a Security by the SEC because it passes rule #4 of the infamous “Howey Test”. This is for several reasons:

  • With our governance system in place the coin holders, not the founders, will control the destiny of Divi through voting.
  • Coin holders do not need the price of the coin to increase to gain a profit since it has several revenue streams in its ecosystem (masternodes, staked wallets, DNS name registration fees, transaction fees)
  • Divi is designed to be a currency, for purchase of real products and services.”

Small-Cap Lottery

Now that the coin is out in the open market, the only KYC procedure a buyer has to worry about is the one they’ll encounter upon registering at a new exchange. That said, Divi is only listed on four exchanges right now. Only two of those have any trade volume, while one of them doesn’t accept users with British (and presumably U.S) IP addresses. So actually getting your hands on Divi might not be straight forward.

But this inconvenience is the premium you must pay if you dare to play the small-cap lottery. Unless you caught the token at its ICO/IEO phase, you run the risk of having to chase it through a series of small, unregulated, often fraudulent exchanges.

The upside is that by the time it hits the likes of Bittrex, Binance, Poloniex or Binance, you’re already way ahead of the price pump. With this in mind, it’s wise to make full use of online forums and review sites, where people post their experiences dealing with crypto exchanges. The concept of DYOR (Do Your Own Research) is made trickier by the fact that exchanges often post fake positive reviews about themselves, but this is the situation we find ourselves in.

Disclaimer: The author has no investment position in Divi. He owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. Chart via CoinMarketCap.

Greg Thomson is a freelance writer who contributes to leading cryptocurrency and blockchain publications like CCN, Hacked, and others.