Bitcoin Global News (BGN)
March 28, 2018 -- ADVFN Crypto NewsWire -- What is the most
valuable thing you can think of that is not publicly traded, yet
still classified as a traditional asset? For many, especially those
with a background in investing, diamonds likely come to
mind.
To understand why this is important
for the blockchain industry, it is important to understand the
recent news surrounding the trading platform called CEDEX. First,
CEDEX has secured around $50 million in diamonds in preparation for
the launch of its’ “diamond ETF.”
Second, and even more importantly,
they have publicly stated that they will be the first to make
diamonds a tradeable asset. In the event that you find yourself
scratching your head here, you are surely not alone in this
respect. CoinDesk reports that this is due to CEDEX’s in-house
trading algorithm as well as simply because of the fact that it is
using the blockchain.
Overall, CEDEX’s goal is to use
their exchange to create an entirely new market. On their site,
they attempt to clarify the claim that the blockchain has enabled
them to create this market by relating all of their efforts to
facilitating liquidity that could not have been facilitated
before.
For those of us who are already
crypto investors, this claim is nothing new. The blockchain
facilitates liquidity like never before, simply because of how fast
it allows assets to be traded. Even so, is this enough of a
foundation to claim that a new market has been created?
Certainly, all diamonds included
would have to be tracked from their sourcing to their placement on
the CEDEX exchange or credible claims could be made that some of
them are conflict diamonds. Given that they have publicly said they
have overcome any sort of transparency issues in this respect, it
would appear that this will not be a problem.
Even so, exercising caution with
regards to such an endeavor would be a good rule of thumb. CEDEX is
basically a decentralized exchange to allow diamond holders of any
kind to directly trade with interested investors. Since they appear
to have no plans to implement any sort of know-your-customer
requirements, there is really no way to know who these people will
be.
By: BGN Editorial Staff