Blockchain Startups to modernise the Diamond Trade

The process of converting the shiny stones into cryptographic tokens has been started
25 June 2018   454

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.

Bitfinex to List BCH' Chain Split Tokens

Bitfinex warned that support for BAB and BSV could be temporary
14 November 2018   56

The Hong Kong cryptocurrency exchange Bitfinex has listed the so-called Chain Split tokens for the two implementations of the Bitcoin Cash protocol. Bitcoin Cash hardfork is planned on 15th of November.

BAB [Bitcoin ABC client] and BSV [Bitcoin SV client] tokens will be traded in pairs with Bitcoin and the US dollar. The Token Manager tool will allow users to convert their Bitcoin Cash into one of the tokens. This process is reversible, Bitfinex emphasized. At the same time, marginal trade in tokens will be unavailable.

After snapshot of the network, the corresponding coins will be automatically converted into BAB and BSV onchain tokens, and all current Bitcoin Cash holders will receive an equivalent number of coins. However, if the user has a short BCH position at the time of the snapshot, the margin will be canceled, and the borrower, if he does not have enough tokens, will have to cover the negative balance sheets until December 31.

Bitfinex also warned that support for BAB and BSV could be temporary, and that as soon as all negative balances were covered, the exchange could delist them, allowing limited time for withdrawal.