The participants of the СDiamondCoin ecosystem had an interesting question: «Are there any competitors for the company? What are they like?».
The team of our journal decided to understand that issue, carefully explore the entire segment. We invite you to meet other companies working in a similar field.
It is impossible to explore companies from all over the world, so we relied on those that are currently presented in the white paper СDiamondCoin. Let’s start with the main competitor.
Studying the CEDEX project, we initially make a conclusion that in essence, they offer the same thing as СDiamondCoin, but this is only at first sight. Using blockchain technology, CEDEX wants to create an absolutely transparent diamond market.
«Cedex eliminates three major hurdles – the lack of transparency, liquidity and interchangeability. CEDEX will change the perception of the diamond market. Using new technologies, including blockchain, will create an open and transparent market where everyone can sell diamonds or buy them for saving capital».
CEDEX works on the basis of DEX technology. No, this is not a decentralized exchange, it is a machine learning algorithm that was developed by the company. What is its essence? It estimates the value of a diamond, depending on the input data. For example:
As we can see, there is possible to enter the GIA certificate number and carats of a diamond, then DEX will calculate its cost.
What does the company offer?
At the moment, a trading platform is already available, where, apparently, everyone can either buy a diamond or sell it. Operations on the platform are possible only with the help of the project token – CEDEX Coin. That is, for buying a diamond, you buy a token, then start it on the exchange and buy the gem directly.
There is possible to choose how not very expensive diamonds up to 1 carat:
Also more expensive, which starts from 2 carats:
CEDEX Coin is currently traded on only two exchanges, but not particularly liquid ones:
As we can see, the trading volume is very sad, or rather, it has been absent for several days already. The asset chart also leaves much to be desired:
During the campaign for the initial sale of tokens, CEDEX promised that they will be traded on all popular exchanges, but, as we can see, this is not so. By the way, about ICO.
ICO was held at the beginning of last year. In a white paper Сiamondcoin in the «Competitors» section, it is indicated that the company raised $ 14 million.
The distribution of tokens is as follows:
The funds received should have been directed to:
Since the ICO, the company’s goals have changed a little bit. Firstly, in addition to CEDEX, they plan to add the dollar, Bitcoin and other currencies to the platform. We decided to ask about the availability of liquidity on the platform, to which we received a rather concise answer:
Based on this, we can conclude that the liquidity on the platform is quite low, and the company’s task is creation of a fund that will be traded on the stock exchange in the form of shares and invest in diamonds.
What conclusion can we make? From the point of view of the project development, it seems that everything is going well overall. The company launched a platform on which diamonds are already being traded. Now it wants to create an ETF, but how things are actually going – it is hard to say, publicly information is not enough to accurately assess development progress. What we can be sure it is that from the point of view of investing, things are not so rosy:
During the PRE-ICO, the price was 0.543 USD, but now it is 0.01 USD. As we can see, the fall is more than 50 times. Therefore, we can conclude that the investment component was a failure. But to this it is worth adding zero trading volume over the past few days.
CEDEX Coin was distributed as an ERC-20 token during the ICO. That is, investors assumed that it would grow in value. In fact, we see that the platform has launched, but the token is not in demand. Moreover, if other currencies are added to it, then why will CEDEX Coin be needed at all?
Honestly, the first impression of the project is not very pleasant. It seems that you got into the sphere of hype, and not on the site of the future diamond industry market leader. The first thing we are offered is immediately buying the project tokens.
DPAX is an ERC-20 standard token that is a service token. Now it can be bought at 60 US cents. Moreover, there are minimum requirements – $ 10,000 or 50 Ethereums, as well as the passage of the KYC / AML procedure is required.
What we liked that the application with which you can purchase a token. Download to your smartphone, go through KYC / AML and buy DPAX.
Linkedin describes the idea of the company in detail.
«Today, small and medium-sized businesses cannot receive financing. The gap in this area is more than $ 100 billion. This creates economic and social consequences, due to which hundreds of thousands of workers lose their jobs. We will create an ABC platform to bridge this gap. We will increase the effectiveness of financing. ABC is an infrastructure with several blockchains and a market network. It is controlled by the Swiss Diamond Coin Foundation. The platform will be used to create liquidity in hard-to-finance areas such as the lithium, cobalt or wood pellet market».
Separately noted the diamond market, which, according to company representatives, is difficult to access. Moreover, investment diamonds were the first product on the ABC platform. You can buy them already by creating an application.
What about cryptocurrencies? They also have a separate paragraph. It is reported, that various sellers will be able to tokenize the above goods and sell them on the ABC platform.
The procedure for purchasing diamonds is slightly different from the CEDEX platform or the one that Diamondcoin plans to provide. Firstly, the minimum purchase amount is $ 50,000, that is, ordinary retail investors are already falling away. Secondly, there is no platform or some kind of exchange. You go to the site and leave a purchase request, indicating the desired amount. Next, you will be contacted and sent a purchase agreement CHD. CHD, as I understand it – this is a diamond in a tokenized form. That is, it is a kind of CDC analogue. It is also a token on the blockchain, which is provided with diamonds in the Swiss Freeport vault. The CHD is issued by the SwissDiamondCoin Foundation, based in Liechtenstein. The introduction of new tokens will occur through the creation of smart contracts, in which diamonds will act as evidence of collateral.
CHD can be exchanged at any time for diamonds that are owned by the Swiss Diamond Coin Foundation.
Social project of networks are empty. There are 0 posts on Twitter, but we weren’t able to get into telegramm at all.
What ultimately does the company offer and what has already been done? A campaign is going for raise the funds needed to develop the ABC platform. In return, the investor receives the DPAX service token. Why is it needed? It is needed to deliver diamonds to the future ABC platform. That is, if the owner of the diamond wants to sell it on the platform, then he must pay the company with DPAX tokens to provide this opportunity.
There is also a CHD token. It is pegged to diamonds. It is necessary for preserving capital, and in which case precious stones can be purchased for it.
If draw an analogy, then DPAX is DPT, and CHD is CDC.
– Stable coin pegged to diamonds;
– You can exchange it for diamonds at any time;
– It can be used as a tool for transferring funds, since it would have high bandwidth.
– Suppliers of real assets (cobalt, gold, diamonds) must pay DPAX platform for the opportunity to sell them;
– Users pay the DPAX platform as commissions;
– Buyers of goods can purchase real goods for DPAX, if sellers agree to this.
– DPAX will give a voice in the further development of the ecosystem.
In general, the opinion is not unambiguous, there are both positive and negative points. But the company is only at an early stage, only fundraising is going, and it’s too early to say anything specific, there is still the question of whether a successful ICO would be carried out to further finance the project.
What did we like?
There is in white paper the technology of diamond pricing was described in detail, which, according to the project website, was developed in 2016 by the founder of ABC Platform, Mathias Bucher.
The latest project in our review today. Since it turned out to be rather lengthy and long due to the extensive information on the first two projects, we will pay very little attention to this. In addition, there is nothing to talk about.
What does the project offer? The team wants to create an affordable and liquid diamond market that is currently going through hard times. To do this, they developed the Diamond Pricing Algorithm (DPA) technology, which makes it easy to evaluate every gem. Now this is a problem, since only a certified specialist can evaluate a diamond properly. The project wants to solve this problem.
What will valuation technology be based on?
• Certificate obtained from the GIA.
• Carats. Every 0.2 grams is 1 carat.
• Design assessment.
• The form.
• Polishing quality.
• The outer edge of the diamond (thicker, thinner).
• The presence of a small face at the bottom of the diamond.
• Height to diameter ratio.
• The ratio of the upper area to the total diameter.
• Country of origin.
Its advantage is that other more traditional methods of pricing assessment analyze only 4 parameters: carats, color, transparency and quality of execution.
The company also created an ERC-20 token provided with diamonds. Every day, it estimates the amount of diamonds available and issues the appropriate number of tokens. Any investor can buy them and thus invest in a stable tool – a diamond. CARAT.io is supported as follows:
You can also redeem your tokens by taking back US dollars. The minimum amount is $ 50,000. Maximum $ 500,000. There is 1 transaction per day available.
What about ICO?
The CARAT token was sold for $ 1. In total, the company planned to raise $ 4 million, for which it was supposed to buy diamonds. The logic of maintaining pricing is understandable. If the market grows by 10%, it means that they have $ 4.4 million in supplying diamonds, respectively, the token should increase by 10%. The opposite is the case with falling diamond prices.
However, we go to the CMC and see the following:
Or diamond market has fallen in half, or the pricing mechanism has failed. In addition, the total supply of tokens is not 4 million, as they say in a white paper, but 2 million.
After analyzing the competitors of the CDC, what conclusion can we can make? The CEDEX platform could compete with our project if it moved in the original direction. But the company decided to change the development vector and now there is no competition, which can be concluded by looking at the pricing schedule of the project token, which, in fact, was previously the main product.
ABC Platform offers the same products as Сiamondcoin. But it is a little bit behind in development. If our company has already raised funds, provided a service token that gave x4-x5 and will provide a ready-made platform soon, then ABC Platform has nothing like that. ICO is going, whether the funds would be implemented properly is unknown.
Well, I see no reason to say something about CARATS.IO. Something went wrong in development of it. There are no posts on social networks for half a year already, there is no activity in the telegram chat for some months already.
Therefore, Сiamondcoin can be considered as a leader in this direction. At least, among those projects that we have analyzed. Perhaps there are others projects that we know nothing about.