Diamonds as protection of cryptocurrency value
On December 22nd Cdiamondcoin presented its first products to the world. These include a CDC token and a blockchain-supported platform where tokens can be exchanged for natural diamonds. The CDC value, unlike other stablecoins, will be based on real assets – diamonds. They will provide stability for the new cryptocurrencies .This is primarily due to the nature of the price of diamonds, which, even during the economic crisis, rarely drops more than 15%. The price of investment stones, which will consist of 95% collateral, is likely to increase. The remaining 5% of the capitalization will be covered with smaller 0.05 carat diamonds, whose value on the platform is about 40 euros – that is the value of 1 CDC token.
The transparency of the tool is undeniable thanks to the use of two technologies – blockchain and the technology of applying a unique identification code to each diamond (for diamonds above 0.3 kt). After receiving the stone, the customer can compare the GIA code engraved on the diamond with the code available on the platform. Due to the above features, this is a unique solution that has been presented for the first time in the crypto industry.
“The cryptocurrency market has needed for many years a real stablecoin, resistant to variability and at the same time completely transparent. All existing solutions have serious disadvantages. Combining the uniqueness of diamonds with blockchain technology has created a completely unique and transparent system. It combines two fundamentally different worlds – virtual and physical – something you couldn’t see, now you can touch! – said Igorn Nikitin, founder and CEO of the company.
The platform is supported by the DPT token, which is currently available on 4 exchanges and is currently ranked 140th with almost 5,000 crypto listed on coinmarketcap.com. Despite the declines in the crypted market over the last 2 years, the DPT token has grown by 350%. In the first year after the platform was launched, analysts predict a significant increase in the CDC price.
Capital hedging in diamonds
The product may be interesting for people who are looking to protect their capital from inheritance. Diamonds as an asset class are unique, thanks to their stable price, and that is why when buying a CDC token, customers can get this stability. At any time, customers can exchange their tokens for diamonds and sell them.
The size of the capital is not crucial – you can buy stones for 40 euros, paying only one CDC, or buy a diamond of investment category, starting from 0.3 kt, for more CDC. 1 CDC corresponds to 1 0.05 carat diamond.
It is also worth mentioning that a CDC can not only be a solution to secure capital, but also act as a tool for transactions. The speed and cost of the transaction depends directly on the capacity of the Ethereum block chain, but the company does not rule out switching to a faster blockchain or creating your own solution, if necessary. Therefore, traders can use the CDC as a protection tool during market downturns.
The platform, which has been under development for over a year now, is not only a platform for exchanging CDCs for diamonds, but also acts as a marketplace where diamond suppliers will be able to place their assets and sell them on the platform. A mechanism has also been developed to verify suppliers who have been operating in the industry for years, have an excellent reputation, are responsible and reliable. As part of the project, a mechanism of a fair price model was also created.
The company’s office is located in the heart of the diamond industry – in Antwerp, Belgium. This region accounts for 84% of the global diamond market.
“Our solution will open up the diamond market and crypto for the general public in a new perspective,” said Igor Nikitin.
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