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CEDEX.com is an exciting new global exchange created by a group of highly experienced individuals working in the diamond industry. The focus of CEDEX is to close the gap between the traditional diamond industry and the financial markets, which are experiencing a significant boom thanks to the rise in popularity of cryptocurrencies around the World. By reinventing the way diamonds are valued and traded, CEDEX will turn diamonds into a new asset class of its own, while simultaneously opening up the industry to new investors.
Much like other precious and rare materials such as gold and silver, diamonds have been traded globally for hundreds of years. However as the CEO and Co-Founder of CEDEX, Saar Levi, pointed out while presenting at a Fintech Meet-up in Tel-Aviv last November, investment in Diamonds has always been limited by three key factors; a lack of transparency with data not easily available to new traders, a lack of liquidity because of the one-sided nature of the market and finally a lack of standardization with each stone being unique in nature. Let’s look at these three challenges in more detail and how CEDEX aims to solve them.
Overcoming Existing Obstacles with CEDEX
Anyone who has owned diamonds and has tried to sell them will understand the difficulty of transparency in the market. There is currently no retail data available for customers to work with and value their stones against, so often they are left trusting the word of diamond traders or pawn shop owners.
The next challenge is the lack of liquidity in the diamond market. In a report carried out by De Beers’s in 2016, it is suggested that 95% of global diamond trade goes to consumer retail. However once these diamonds have reached these consumers, it is difficult to resell them without making a loss, which has been a significant turn off for investors in the past.
The last obstacle is that of Standardization. No two diamonds are alike and thus valuing a stone can be challenging and take expert knowledge to do correctly.
For the first time, we see a feasible answer to all three of these challenges with the CEDEX Solution. Both Standardization and Transparency will be achieved with the introduction of CEDEX’s sophisticated machine learning algorithm, the DEX. What the DEX does is takes into account three major components of stones on the CEDEX Exchange; the gem composite of each stone on the market, parallel trades being carried out on the exchange and finally diamond indices and current trends. By bringing these three components together, the DEX can create an output of the market value of any diamond entered onto the CEDEX Exchange, thus eliminating the need for investors to have years or knowledge and experience in diamond trading.
The issue of liquidity is overcome by the CEDEX Exchange by enhancing both the supply and demand sides of the current market. With CEDEX’s new partnership with IDEX, the worlds largest online diamond exchange, CEDEX has positioned itself to include IDEX’s existing user base of over 7000 diamond dealers from all over the world and thus increase supply to the market. Supply will also see an increase as private diamond holders, who up to this point have had no way of entry to the industry, will have a means to liquidate their assets as they see fit. On the demand side, the continued growth of cryptocurrency investors will provide a welcome addition to general investors looking to expand their existing asset portfolios.
Why CEDEX Utilizes Blockchain Technology
Along with the CEDEX Exchange and the DEX algorithm, CEDEX.com will be launching its own ERC-20-compatible token in 2018 called the CEDEX Coin. The CEDEX Coin will be the only means of payment used on the CEDEX exchange, helping to create Diamond-Smart Contracts for each trade and regulate the industry as it grows into an asset class of its own.
The creating of Diamond-Smart Contracts with blockchain technology is beneficial in many ways:
-As long as trades remain within the CEDEX Exchange, no additional transportation or insurance costs will be necessary.
-All transactions that use the CEDEX Coin will save on fiat-currency transaction charges.
-Diamonds being traded on the CEDEX Exchange will be able to be tracked with their origin and all their transactions clearly documented on the Diamond-Smart Contract.
-Trades can be carried out quickly and efficiently, as well as P2P, without the need for any third-party involvement.
-By using open blockchain technology, CEDEX will be allowing anyone to collect, aggregate and analyze the data for their own purpose.
-Because CEDEX is governed by smart contracts and all transactions, including payments in and withdrawals out by traders are governed by the Ethereum blockchain, CEDEX management can have no say or hold over the process.
How to Be a Part of the CEDEX Revolution
CEDEX.com have shown the potential of the diamond industry to become the next financial asset class. With a viable plan of action laid out with the formation of the CEDEX Exchange, the DEX and the CEDEX Coin, there has never been a better time to invest in the diamond industry.
CEDEX will launch its Blockchain-based diamond exchange beginning with an ICO Token Pre-sale of its CEDEX Coin on the 16th March 2018. Due to unprecedented interest, the pre-sale amount of tokens has increased to 50% of the total.
The minimum purchase limit for CEDEX Coin at launch will be set at 1 coin, currently valued at 1 Ethereum. CEDEX Coin can be purchased using Ether, Bitcoin and fiat currencies according to the current rates in the market.
The CEDEX Coin can be used for the purchasing of diamonds, payment of insurance costs, transaction fees and custodians fees for holding of diamonds. This tangible value attached to the CEDEX Coin helps set it aside from other cryptocurrencies on the market and will be an encouragement for investors facing an currently unpredictable financial market.
In order to purchase tokens during the pre-sale, you will need to register at www.cedex.com.