CEDEX is a new company set to take both the online financial services arena and the diamond industry by storm. Completely revolutionary in its approach, CEDEX is using blockchain technology to create a transparent investment space, where diamonds can be traded as a financial asset.
Most savvy investors diversify their portfolios, mitigating risk by spreading their investments to include a varied selection of stocks, bonds and commodities. When selecting which types commodities to add to a portfolio, precious metals like gold and silver, have always offered an attractive trading opportunity as they present a stable store of value, making them a great hedge against stock fluctuations and inflation. However, while diamonds offer as stable a proposition as precious metals, unlike the gold market, which is open to every kind of investor, the diamond market is almost completely inaccessible to those who are not diamond industry experts.
The last ten years have seen numerous attempts to create a lucrative diamond market for the general investment community, yet up to now, none of them has been able to overcome all the challenges facing such an endeavor, including the problems of the diamond industry’s lack of transparency, liquidity and standardization. CEDEX looks to have found a solution to all three as it creates the first ever blockchain based certified diamond exchange, powered by its own cryptocurrency, the CEDEX Coin.
Almost a decade has passed since the emergence of Bitcoin, in 2009, and now digital currencies are offering an increasingly common alternative to fiat currencies. They have been generating an incredible amount of buzz recently, with the Bitcoin market cap passing the $300 billion mark, in December and with new currencies sprouting up with increasing frequency.
Many believe that the cryptocurrency bubble is about to burst, and that it does not present a viable long-term investment. However, a growing number of institutional investors are coming on board, as they recognize digital currency to be the next step in the evolution of the global economy. Although the cryptocurrency markets can be highly volatile, they offer an innovative, exciting opportunity, with a smart, versatile, underlying technology — the blockchain.
It is this technology that enables CEDEX to turn diamonds into a tradable financial asset, overcoming the industry’s lack of liquidity and transparency. With an open environment where each transaction is published on the blockchain, investors are no longer faced with closed diamond industry of old where markups were an inevitable reality for non-diamond professionals and it was almost impossible to resell a stone without a 50% loss.
However, the use of blockchain technology isn’t the entirety of the CEDEX solution. The other half of the company’s winning formula is a proprietary machine learning algorithm, which solves the issue of standardization, the third challenge in making diamonds a viable investment opportunity.
Unlike gold and other precious metals, where any single unit of the commodity is the same as any other, diamonds are each completely unique with variations in cut, color, carat and clarity that affect the value. To address this issue, CEDEX’s algorithm, the DEX, accurately and transparently evaluates each diamond based on parallel composite data, gemological information, and diamond indices composite data.
CEDEX generates diamond smart contracts that represent the ownership of each stone, historical trading data and gem composite. To buy and/or sell diamonds on the exchange, investors will use the CEDEX Coin, the platform’s native digital currency, required for all transactions.
The CEDEX Coin is a unique token compared to many others available on the market today, as its value is connected to diamonds, a highly stable asset class.
Investors wishing to buy CEDEX Coin don’t have long to wait, as the token presale is just around the corner, on March 16th at 10:00 am GMT. To sign up in advance of the presale, check out the company website, or become a member of their Telegram, or Facebook communities.
