CEDEX offers non-professionals the rare opportunity to participate in the lucrative diamond trade. It highlights the value of these precious stones as an investment vehicle and seeks to bridge the current market gap between the diamond industry and financial markets. The unique approach proposed by the project will make it possible for traders to invest in and liquidate diamonds like they would in any other financial assets but with the added benefits of security and transparency thanks to the blockchain technology.
The diamond industry has for centuries been shrouded in mystery. Apart from the professionals, few others can tell the real value of any given stone. The result is that most transactions do not reflect the true market value of the stone and outsiders end up paying a hefty price due to the lack of transparency. CEDEX uses a four-tiered approach to bring down market barriers to diamond trade and offer investors all of the tools they need to participate, with or without expertise.
The DEX
Lack of coherence and transparency in the appraisal of diamonds is a major reason why these precious stones are yet to become an independent asset class. The DEX is an evaluation and rating algorithm that allows traders to assess the true value of individual gemstones in relation to prevailing market rates. The DEX algorithm offers traders the level of transparency and standardization they require in order to effectively carry out business.
It uses a combination of gemological information, the global diamond inventory and data from financial indices to rank individual pieces and assign them prices. This machine learning system allows traders to base their investment choices on actual data, something that has not been possible to date.
Diamond Tokenization
Another challenge for diamond holders is the complexity of liquidating their holdings. CEDEX proffers a tokenization model to facilitate this process using a smart contract feature. Regardless of the nature of a person’s holding, this information is captured in the contract to represent a financial offering.When a request gets executed, the diamonds in question are delivered to a custodian for assessment and validation using their GIA certificate. If they get approval, a smart contract gets executed and is transferred to the owner’s digital wallet after which the owner can list the smart contract on the platform’s exchange or sell the holdings using a P2P approach.
The Diamond Trading Exchange Platform
Lack of expertise is yet another barrier to diamond trade necessitating the use of third parties to facilitate trade for non-experts. But having diamond smart contracts shared on a public blockchain registry will allow all platform users to participate in trade with ease. They might choose to buy or sell on the platform or on P2P basis, leading to the rise of a fungible and fully decentralized trading environment that enables professional level trade in the absence of diamond trade expertise.The system uses blockchain technology for both the tokenization process and trading on the CEDEX exchange platform. The DEX ranks all diamonds within the CEDEX ecosystem into categories and allows traders to identify best value investments. In order to ensure reliability and trust within the ecosystem, this exchange only accepts diamonds with GIA certification issued by the Gemological Institute of America.
It offers a clear view of all available financial offerings for pro and new traders to pick from. The data available will enable them to assess the investment potential of possible options against a DEX recommendation.
This platform allows for fast and efficient trading and eliminates the need for intermediaries who inflate costs. Additionally, there will be no additional insurance or transportation expenses for all gems operating within the CEDEX network.
The CEDEX Coin
The CEDEX coin is an ERC-20 token that runs on the ethereum blockchain. It will serve as the only unit of exchange within the ecosystem thus making it a crucial part of the platform. All payments, purchases, and transactions will use this coin. As the platform gets more active users, the demand and value of the coin are also expected to rise.A Hybrid Rapid Deployment Approach
The CEDEX system is looking for ways to avoid reinventing the wheel by taking advantage of existing frameworks to support the technical aspects of the system. For instance, when it comes to identity verification, the system will combine the use of Civic and Verify to offer a comprehensive and foolproof identity confirmation model. The smart contracting feature relies on the ethereum framework while the chosen consensus algorithm is the Proof-of-Stake system used by Qtum.The value of the diamond market at present exceeds $60 billion annually with purchases ranging from approximately $20 billion. But the investment value of these purchases is only about 5% of the 20 billion and this is largely due to the market constraints discussed above. CEDEX offers an innovative way to address these market barriers and open up this high-potential opportunity for investors all around the globe.
Token Sale Beginning March 17th
Investors who participate in the upcoming token 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. With over 1000 participating, CEDEX was able to sell all of the available 25,000,000 CEDEX Coins in just a couple of hours. The token pre-sale went live on March 16th at 10:00 GMT and finished at 13:54. The sale started on the 17th at 10:00 GMTThe minimum contribution for the token pre-sale is 1 ETH. There will not be a minimum contribution for the subsequent general token sale.
You can read more about CEDEX on their CEDEX website , whitepaper or lightpaper and contact them through their Telegram channel.
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