Bitcoin Global News (BGN)
May 25, 2018 -- ADVFN Crypto NewsWire -- Recently, it was reported
that the blockchain company, D1 Mint Limited has
actually signed a concrete agreement to purchase 1,500 genuine
diamonds with a value of $20 million from KGK
Diamonds, which is a large Diamond industry player.
Such an agreement could signal
further trust being placed in crypto firms that claim to offer
currencies that are tethered to more traditional, stable assets
such as diamonds, gold and others.
Alrosa, the firm which
apparently supplied the uncut diamonds to KGK and is also involved
in the deal, stated that they believe in the Blockchain’s ability
to change the “precious gem industry” for the better. Precisely,
they believe that putting diamonds on the Blockchain will kick up
demand significantly.
This agreement comes in the face of
difficulties that the diamond industry has been facing with regards
to demand for diamonds from retailers. Apparently, for 4 years,
global customer purchases of diamond-based jewelry have stayed at a
constant level. In other words, customer demand hasn’t risen and it
hasn’t fallen.
To begin to increase demand, D1
will be tethering their diamonds to a proprietary crypto coin
called D1 coin. When customers purchase D1 coins, they can
eventually redeem their stake for actual, physical diamonds. To
decide how much a customer gets, D1 uses an internally developed
pricing algorithm. While specific information does not seem to
exist on how this algorithm works, one can reasonably assume that
turning one’s crypto in for diamonds won’t be cheap.
Even so, it will show a different
group of investors, that it is at least theoretically possible for
anyone to invest in such an asset class. It’s also important to
note that even with this novel agreement between D1 and KGK, the
diamond industry isn’t done with the Blockchain.
They’re reportedly also seriously
exploring Blockchain-based options to improve their supply chain
and this includes working with big players like IBM. As D1 moves
past its ICO and into being live, it will be interesting to see how
their vision comes into being. Be wary, however that as of now,
they are refusing to release their white paper
to US citizens, Chinese citizens, and residents of
Singapore.
By: BGN Editorial Staff
News:
D1 Mint
Limited
Blockchain
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