CEDEX promises to bridge the gap between the traditional diamond industry and innovative financial markets. For the first time, general investors could have the opportunity to confidently invest in diamonds as they would in other traditional assets.
Historically, diamonds have resembled gold and other precious metals as a steady store of value. That said, there are a few significant issues that continue to prevent diamonds from being an option for the average investor. Until recently, there weren’t any practical solutions to those issues, and it seemed that the massive potential of the diamond market would remain mostly untapped.
Now, that’s finally set to change. With the advent of cryptocurrencies and their recent surge in popularity, innovation is spreading to all kinds of other applications. CEDEX is one of those innovative projects – a blockchain-based diamond exchange with a novel approach to the diamond financial market.
First, it’s important to understand the issues that the diamond industry currently faces. Those are a lack of transparency, lack of liquidity, and lack of standardization.
The diamond business has a prevalent “closed shop mentality” that makes it just about impossible for anyone who’s not “in the know” to understand how a diamond is valued and to gauge its true worth. This results in a lack of clear and transparent pricing, hindering the ability of general investors to purchase diamonds with confidence.
There’s also a lack of liquidity that plagues sellers who try to get a fair market value for their stones. The problem is that diamonds are mainly sold to end consumers in a one-sided transaction. This skewed market automatically places anyone who owns a diamond at a severe disadvantage if they want to resell it. So much so, in fact, that most resales incur a loss of 30% – 50% of the market price.
And finally, it’s important to note that diamond pricing has a complete lack of standardization stemming from the fact that diamonds aren’t fungible. Each diamond is unique, and its value can’t be determined from any one metric on its own.
As a result, the average person who just wants to determine a diamond’s value needs to take it to a professional appraiser. The appraiser then subjectively assesses the value based on the 4Cs of diamond quality: color grade, clarity grade, cut grade, and carat weight.
Those are the three problems that have been holding the diamond market back for years. CEDEX addresses all three with an innovation and multi-faceted solution.
Part 1 of the solution is CEDEX.com – the exchange platform that brings together the two sides of the diamond market without a middleman. CEDEX uses Ethereum’s blockchain technology and smart contracts to trustlessly enforce the terms of transactions between diamond buyers and sellers.
On the supply side of the market, the exchange platform serves as a new distribution channel for existing diamond dealers, as well as a way for private diamond holders to resell their diamonds at fairer prices than they could hope to get today. On the demand side, CEDEX has appeal to general investors who could buy diamonds as a hedge against inflation and the stock market, as well as cryptocurrency investors who could invest in a less volatile crypto asset.
The second, completely novel part of the solution is the DEX. If diamonds are going to be as easy to invest in and trade as other traditional assets, there needs to be a way for anybody to efficiently and accurately appraise a diamond’s value. That’s the role played by the DEX. It’s a machine learning algorithm that was created as a means of transparently and coherently evaluating diamonds, with a pricing accuracy rate of over 99.5%.
The DEX appraises three main elements of each diamond. First, it analyzes data collected directly from the Gemological Institute of America (GIA) in order to assign diamonds with a gemological “score”, representing its gemological purity. Then it assesses the parallel composite, which indicates how rare the particular type of diamond is. Finally, it accounts for the diamond indices composite, using globally published indexes to provide investors with insights on the market’s direction.
For cryptocurrency enthusiasts and investors, transparency and trustlessness are absolutely critical. CEDEX establishes new standards for those factors in the diamond market, showing the benefits that are possible for tokenization of additional real-world assets like stock, real estate, and other commodities.
CEDEX Coin Token Pre-Sale
Investors who participate in the upcoming token pre-sale will capitalize on the best opportunity to get CEDEX Coins at a low price before the decentralized exchange goes live in Q3 and transforms the diamond market. Participants who buy the first 10% of available tokens will receive a 30% bonus. After that, buyers of the next 40% of available tokens will receive a 15% bonus.
The minimum contribution for the token pre-sale is 1 ETH. There will not be a minimum contribution for the subsequent general token sale.
To research more about the CEDEX project, you can read their whitepaper and look through the project website. There’s also a lightpaper if you’re short on time. Finally, you can get more involved in the CEDEX community on Telegram, Facebook and Twitter.
Disclaimer: this is an article written by CEDEX, Fintechnews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any actions related to the company. Fintechnews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
Please note this is no investment advice.
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