By
Kofi Ansah
September 20th, 2022
Though investing in diamonds did not used to be popular among investors, the first certified blockchain based diamond exchange CEDEX is to change the situation.
For many years investing in diamonds wasn’t a very attractive option for investors. Firstly, many of them were preoccupied with the social issues related to the diamond trade in some developing countries. Secondly, there are also some other negative factors – lack of transparency, lack of liquidity, and lack of standardization.
But today the CEDEX platform, the first ever Certified Blockchain Based Diamond Exchange, helps to overcome these three major challenges existing on the diamond market that have always prevented it from being a viable alternative investment class. The platform functioning is aimed at creating a link between the traditional diamond industry and the innovative financial markets.
All the activities available on the CEDEX platform will be carried out with the usage of a digital token named CEDEX Coin (an ERC-20 compatible token on the Ethereum blockchain,) which will make all transactions on the exchange, including buying and selling diamond smart contracts as well as paying for additional services such as transportation and insurance for the diamonds themselves, easier and safer.
The key opportunities are the following:
- Diamond derivatives as well as physical diamonds will be offered through Diamond-Smart Contracts. Purchasing CEDEX Coins will be the way for traders to interact with these products.
- Also, thanks to working on the CEDEX platform traders will get benefits from some supplementary services such as access to gemological labs responsible for authentication and grading, transportation, insurance and custodial services. All the payments for these services should be made with the usage of the CEDEX Coin.
- Traders will have a chance to get access to CEDEX Coin loans through diamond investment portfolios.
- The CEDEX Coin can be also accepted as compensation for diamond purchases by those diamond dealers who will meet the transparency requirements through CEDEX’s innovative machine learning algorithm – the DEX.
- Traders will be able to use the CEDEX Coin to cover borrowing and collateral fees through opening a short position through the CEDEX platform.
Traders will get an opportunity to use the CEDEX Coin immediately after the token sale. The core idea of implementing the CEDEX Coin throughout the entire diamond ecosystem is to minimize transaction costs and enhance the operating efficiency of the industry.
At the heart of the CEDEX investment opportunities are Diamond-Smart Contracts that can be offered thanks to the application of Blockchain technology. A Diamond-Smart Contract which will contain all the necessary information on a stone will be created as soon as a diamond owner will put his stone for trading.
Moreover, application of Blockchain opens a wide range of value-adding opportunities for the diamond ecosystem as a whole. First of all, the CEDEX Coin will help to reduce transaction fees.
Secondly, the traders will be exempt from overheads relating to insurance and transportation of diamonds as well as from fees relating to any involvement of third-party facilitators (as now such facilitators are not needed).
Thirdly, due to the information recorded in the Diamond-Smart Contract of each stone, traders will have a full picture of the situation. What’s more, the whole process will gain more transparency due to the data available.
10 million tokens will be available for pre-sale which will start on Friday, January 12, 2018 and last for ten days or until the moment of sold-out whichever comes first. If any tokens remain unsold at the pre-sale period, they will be added to the main sale’s token supply. To join CEDEX one should go through the registration on the website and follow the introduced instructions.
