Why Are Rough Diamonds Not Listed On The DiaEx Exchange
The diamond industry and the crypto community are keen to see, robust trading on the DiaEx diamond exchange. With global demand for the glittering stone having cooled down for the past few years, industry stalwarts are banking on technology to revive market sentiment. Crypto space participants realize that, the deployment of the GTN token as the mode of payment on the DiaEx platform, will boost token demand.
There has been a question raised in recent weeks mainly from the diamond industry. Diamond mining operaters and traders, wish to know why rough diamonds were kept out of the DiaEx trading platform. They feel that the Glitzkoin project should encompass rough and polished diamonds.
No better person to answer that question than, Olga Rosina one of the diamond experts on the Glitzkoin team. She has worked with two of Russia’s largest diamond mining operations – for over two decades. We requested Olga to keep the explanation as simple and non-technical as possible.
Olga explains that, ‘… the characteristic features for cut and polished diamonds, have been defined with a high degree of accuracy. The often heard of 4C parameters, describe the cut, clarity, carat (weight) and color of a diamond. These parameters are universal across the globe. Unfortunately, the 4C parameters are not applicable to uncut or rough diamonds.’
Diamonds are generally certified by diamond testing labs, a few of these laboratories are respected all across the globe. A very interesting thing about certified diamonds is that, purchase decisions are often made based on the certificate. It is not uncommon for these diamonds to be bought, without the buyer having seen the actual stone.
Olga explains that, rough diamonds need far more parameters than the 4Cs to be accurately described. Even the most experienced rough diamond buyer, would like to see the actual stone before making a purchase. This is the main reason why, rough diamonds are not listed on the DiaEx diamond exchange.
The above explanation should satisfy members of the diamond community but, crypto space participants will need some clarifications – here are some related notes. With the DiaEx diamond platform excluding rough diamonds, will the trade conducted on the exchange, be enough to generate any significant demand for the GTN token.
Here is the answer to that question – of the $90 billion diamond trade globally, cut and polished diamonds total up to at least $60 billion. Glitzkoin has always maintained that, it would aim for around 5% to 7% of the total diamond trade. This is a modest estimate and would amount to around, $3 billion. This figure would move up in subsequent years. The $3 billion demand generated for the GTN token, would have a positive impact on the token price.
Glitzkoin is the first diamond blockchain project to be promoted by an industry specialist. The project seeks to improve efficiency and market scope for the multibillion dollar industry. The ICO for the project was completed in June 2018 at a per token price of $0.20 The token is now trading on stellar based exchanges with an impressive price range of $0.18 to $0.22. The crypto community continues to actively support the project, this is visible from the steady trading price range. The DiaEx diamond exchange development is on track for the 2018 4th quarter scheduled launch.