The key to any successful exchange lies in both the design and application of the technology behind it. In the case of CEDEX, the world’s first blockchain-based public diamond exchange, this technology is DEX.
DEX is the proprietary machine learning algorithm which is the driving force behind CEDEX.
DEX has three primary functions:
- Gem Composite Data.
- The parallel composite which gives an accurate indication of the rarity of the diamond category.
- The Indices composite which gives traders market directions of the diamond industry.
CEDEX have launched a beta version of this exciting technology where users can get instant theoretical prices on all their GIA Certified diamonds. Only GIA certified diamonds will be accepted onto the exchange after its launch, thereby ensuring accurate and swift pricing of diamonds.
In the past there have been three main obstacles prohibiting the public from trading in diamonds as an asset class. Solving them is crucial to the success of CEDEX:
- B2B exchanges only
In the past the trading has been restricted by business to business models. CEDEX is designed for both public and business use.
- Lack of liquidity.
The public has been able to purchase retail diamonds only at inflated prices and if ever wishing to sell, have not been able to garner fair market value. CEDEX will offer the most competitive prices available.
- Lack of fungibility.
Diamonds are each unique and as such are a commodity class whose individual units are not readily interchangeable. CEDEX pricing model ensures 100 percent accurate pricing.
- Lack of trading knowledge.
With CEDEX, no previous trading is necessary. DEX itself ranks the diamonds by category. Within each category, the diamonds are listed by “best value investment.”
CEDEX is all about change and plans to revolutionize the industry by not only including the public, but by implementing technology which makes the valuation simple and the trading secure. Transparency is achieved by integrating this with blockchain technology.
Despite being underutilized as an investment, diamonds have always increased in value over any extended period. Approximately 95 percent of the global turnover of diamonds is fuelled by the retail market, while only the remaining five percent is investment. By removing barriers to investment, diamonds can become a leading asset for those seeking to diversify their portfolio. If the diamond market were to mirror the Gold Markets once opened up to the public, that percentage would split to 80/20. Furthermore, with the increased demand from the middle class in both China and India, the inherent value of diamonds should only solidify over time.
The journey to placing one’s diamond assets on CEDEX begins with the creation of a smart contract by the user. This contract represents the financial offering of the diamond assets. These assets can be a single diamond, a shared investment on a high-value diamond or a diamond basket. A private diamond holder or dealer wishing to liquidate his or her holdings will use the simple CEDEX tokenization onboarding process which will appraise the assets. Once the request is completed, the diamonds will be delivered to a custodian. There they will be validated against their GIA certificate. Once approved, blockchain technology is used to create a Diamond Token (Diamond-Smart contract) which is credited to the owner’s digital wallet. The diamond remains for safekeeping with the custodian, and the seller will have the option to list the Diamond Token on the CEDEX Exchange or sell directly to another user.
Only CEDEX Coins can be used to purchase diamonds on the exchange. The CEDEX Coin is an compatible token which will be listed on all major exchanges, enabling users to convert it to other crypto and fiat currencies. A limited amount will be generated and sold (100 million generated, 50 million sold to the public). If any CEDEX Coins which are offered remain unsold, they will be burnt. The proceeds of the sale will be used to provide developmental support to the CEDEX Exchange and additional functionality for the use of the CEDEX Coin.
The Company will also purchase diamonds using CEDEX.com to boost the initial liquidity and inventory of the exchange. Further proceeds will be used to obtain licensing in different locales. The initial coin value is set at 1ETH and the minimum purchase is 1 CEDEX Coin. There is no maximum purchase. CEDEX Coins can be purchased with various fiat currencies, Bitcoin, Bitcoin Cash and Ether. The Pre-sale begins on January 12, 2018, and registration is available on www.cedex.com. Participants in the pre-sale will receive a bonus of up to 0.3 CEDEX Coin for each purchased coin.
The impressive software CEDEX utilizes would be of little importance without an infrastructure of support. Providing this are TechFinancials and IDEX. TechFinancials is a publicly traded company listed on the London Stock Exchange. They are the primary shareholder in CEDEX, owning approximately 90 percent and bring both vast experience and resources for CEDEX to utilize.
IDEX is the world’s largest online diamond exchange with over 7000 active diamond professionals trading. In a recent press statement, it was announced that IDEX has entered into a partnership agreement with CEDEX.
IDEX are not only industry innovators, but have set the standard for diamond pricing online. Both their supply chain and user base will be integrated with CEDEX thereby ensuring immediate liquidity. “There is no doubt that harnessing IDEX’s diamond supplier’s data and inventory is a pivotal step forward towards connectivity between the diamond industry and the financial market” stated Ronan Priewer, the co-founder of CEDEX. Priewer previously founded diamond brands LeLumiere and Masoar.com and has over 20 years of experience in the industry. Together with Saar Levi, the CEO and joint co-founder, they lead a diverse team of specialists heralding from the diamond, technology and financial markets.
With pooled knowledge, resources and DEX itself, the exciting launch of CEDEX is set for Q3 2018. The robust infrastructure and planning may well make the CEDEX Coin a solid investment. Certainly, the possibility of trading in an asset class that was previously restricted will appeal to a vast sector of the public.
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