Blockchain Startups to modernise the Diamond Trade

The process of converting the shiny stones into cryptographic tokens has been started
25 June 2018   270

Blockchain technology has now enabled to turn diamonds into financial assets by representing their value with tokens. There are 3 startups that are aiming to make the esoteric diamond industry more available.

Glitzkoin

A startup from Estonia, Glitzkoin, claims that before diamonds are sold, they have to  be mined, sorted, cut, polished and valued. The developers would like to apply blockchain technology to coordinate all the necessary processes.To this end, it will implement mining/shipping/insurance entities onto its platform. It is also to run a decentralised diamond exchange that will allow anyone “to invest in individual diamonds, shares of a high-value stone or shares in a basket of diamonds like an ETF.” The Glitzkoin blockchain is built on Stellar and operates with a utility token called GLT. GLT tokens will be listed on cryptocurrency exchanges in the third quarter of 2018, and in the fourth quarter the decentralised exchange will be started.

CEDEX

CEDEX is an Israel-based launch that is to open the world’s first blockchain-based diamond exchange. The mission statement of CEDEX is “bridging the gap between the traditional diamond industry and the innovative financial markets”. The project touts three principles: transparency, liquidity, and standardisation. 

CEDEX offers GIA certified diamonds, which means that the diamonds went already through the diamond industry Kimberly process. Currently in the diamond industry there are several initiatives to incorporate blockchain technology. The purpose is to follow the journey of the diamond from rough to polish at the retail store. For CEDEX - which is also a blockchain project - it means that we will be able to use existing infrastructure to show our investors not only the value and GA certification, but also the journey of the diamond. Hence - assisting in preventing ‘conflict diamonds’ to make stage into the market.
Ronen Priewer
CEO, CEDEX

CEDEX is presently registering its coin at cryptocurrency exchanges, and it is to launch its exchange in the first quarter of 2019.

Carats.io

Carats.io is an Israeli launch which is taking a slightly different approach to the problem. It plans to create a token that is backed by the value of diamonds, in the same way that dollars were once backed by gold held in Fort Knox, or more recently, how the cryptocurrency Tether is backed by dollars. Carats.io is applying the diamonds registered on the IDE to develop an index of diamonds named the Get-Diamond Index. Now the GDX is official index of the IDE, and over 10 billion USD worth of diamonds are on the index so far. The firm’s first token generation event is stated to start in Q3 2018.

Ex S&P President to Invest in iComply Startup

The startup is aimed at developing tools and services to meet the regulative standards for blockchain start-ups
14 August 2018   121

Startup iComply, working in the field of regulatory technologies and compliance with standards, has just completed the initial round of financing, which was headed by former Standard & Poor CEO Deven Sharma, CoinDesk reports.

IComply, aimed at developing tools and services to meet the regulative standards for blockchain start-ups (especially for those that conduct ICO), said on Monday that it attracted a seven-figure sum during this invest-round, but did not say the exact figure. The round was also attended by DMG Blockchain and Block X Capital.

In addition, iComply reported that it was joined by former employee of the Commodity Futures Trading Commission (CFTC) Jeff Bandman, former Managing Director of NASDAQ and the Financial Services Industry Regulation Service (FINRA) Manny Alikandro, MIT Connection Science program member, Praveen Mandal and Prosecutor Thomas Linder.

According to Sharma, he decided to invest in the startup iComply, because the project "is focused on services for ICOs related to risks and compliance with standards." Compliance with the standards, he said, will ensure the transparency of ICO issuers and thereby help to ease the concerns of regulators.

Sharma also believes that iComply can contribute to the spread of crypto technologies, helping the entry of traditional financial services into this industry.

My interest is to see iComply evolve into a benchmark that investors can use to assess credibility of issuers, sustainability of underlying services and the price of ICOs. iComply's patent-pending software enables both security and utility tokens to monitor and document compliance, governance and risk procedures, before a public blockchain executes an immutable trade, providing trust, integrity and transparency for our clients. There have been a few ICOs that had a fundamentally robust offering that I understood and did interest me [but I] missed the opportunity. Others that have transparency from a service like iComply, I would [invest in].
 

Deven Sharma

Ex-president, Standarts & Poors

It is the ideas of transparency and trust, according to Sharma, that sparked his interest in order to start working with the blockbuster.