LakeDiamond FAQ

What is unique about LakeDiamond?

  • LakeDiamond is a global leader in the production of lab-grown diamonds for high-tech industrial applications.
  • LakeDiamond has developed a proprietary growth and transformation technology to fully capture the potential of ultra-pure diamonds.
  • LakeDiamond’s Chemical Micro-Wave Chemical Vapor Deposition (MWCVD) reactors grow the highest quality of diamond on earth, suitable for the most demanding applications, thanks to a perfectly controlled and precise technology.
  • The qualities attained are such that they trigger new exciting applications beyond the high-end jewellery market, such as micro-mechanical parts, laser power beaming, high power transistors and high-precision magnetometers.
  • The company has launched an Initial Coin Offering (ICO) to increase its production capacities. Powered by Swissquote, LakeDiamond’s ICO is the first ever to be powered by an established banking group.

What has LakeDiamond accomplished so far?

  • Over the past years the company built an expertise, products and know-how which now put it in a position to further capture market share in the lab-grown diamonds market, especially as it strengthen its position in micromechanics and expand into other applicative segments such as photonics, electronics and biotech.
  • The company gathered a team of globally renowned and respected professionals with a proven track record in physics, industry, computer science, marketing and finance.
  • The company has mastered a process to grow the highest quality of diamond on earth, suitable for the most demanding applications, thanks to a perfectly controlled and precise technology.
  • LakeDiamond collaborates with EPFL’s prof. Niels Quack on the production of lab-grown diamond-based micro-mechanical parts. The company’s associated technology has recently been highlighted in a Nature article. LakeDiamond already collaborates with a major Swiss watchmaker to incorporate diamond-based micro-mechanical parts in watch mechanisms.
  • The Company is the only manufacturer of solid diamond micromechanical parts of any shape with an accuracy of 1μm.
  • LakeDiamond collaborates with EPFL’s prof. Eli Kapon on remotely charging drones and satellites thanks to lab-grown diamonds for energy transfer and a partnership is already in place with a drone manufacturer on this application.
  • The company is also collaborating with EPFL’s prof. Elison Matioli on high power transistors which could have applications in charging of electric vehicles
  • Finally, LakeDiamond collaborates with EPFL’s prof. Christophe Galland on diamond-based magnetometers and got an EPFL Innovator project funding this activity.
  • The company currently grows diamond in its two Micro-Wave Chemical Vapor Deposition (MWCVD) reactors, with a production capacity of 15,000 plates per year.

What is the status of LakeDiamond’s partnerships?

  • LakeDiamond collaborates with EPFL’s prof. Niels Quack on the production of lab-grown diamond-based micro-mechanical parts. The company’s associated technology has recently been highlighted in a Nature article. LakeDiamond already collaborates with a major Swiss watchmaker to incorporate diamond-based micro-mechanical parts in watch mechanisms.
  • LakeDiamond collaborates with EPFL’s prof. Eli Kapon on remotely charging drones and satellites thanks to lab-grown diamonds for energy transfer and a partnership is already in place with a drone manufacturer on this application. The company is also collaborating with EPFL’s prof. Elison Matioli on high power transistors with lab-grown diamonds, which could have applications in charging of electric vehicles.. Finally, LakeDiamond collaborates with EPFL’s prof. Christophe Galland on diamond-based magnetometers and got an EPFL Innovator project funding this activity.
  • Collaboration with IMD prof. Didier Cossin on Corporate Governance and group structuring.

What makes you think there is actually a market for lab-grown diamonds?

  • Lab-grown diamond are the ultimate material for increasingly complex high-value applications in micro-mechanics and robotics, photonics, electronics, and biotech.
  • The exceptional qualities of diamonds make them an advantageous alternative to the materials currently used in many industrial applications.
  • Lab-grown diamonds have been described as “the new silicon” due to their unique physicochemical properties, i.e. most transparent to light, heat best conductor, eco-friendly, chemically inert, hardest and most elastic material, highest breakdown electric field, and biocompatible.
  • LakeDiamond potential total serviceable addressable market is expected to reach CHF 18.4bn by 2022 according to the company, as the market for ultra-pure lab-grown diamond products expand from micro-mechanics and robotics (e.g. micro-mechanical parts for watch making), to photonics (e.g. lasers for energy transfer), electronics (e.g. high-power transistors) and biotech (e.g. sensitive magnetometers).

What patents does LakeDiamond own?

  • LakeDiamond has some exclusive intellectual property (patents, licences) and know-how, which are a significant competitive advantage in these high-tech markets.
  • Thanks to a pending patent process, developed with Prof. Niels Quack’s group, LakeDiamond is able to etch diamond plates into well-defined pieces that can be inserted into complex mechanical systems, such as watches, or into optoelectronic devices such as high-power lasers or transistors, which are many times more valuable than the market value of the diamond itself.
  • The exclusivity for a patent protecting the best configuration of these high-power, record-holding lasers has also been granted to LakeDiamond.

How/Why did LakeDiamond decide to create this company?

  • In 2007, Pascal Gallo earns his PhD on crystal growth in collaboration with Albert Fert, Nobel Prize 2007.
  • In 2010, He joins Eli Kapon’s group at EPFL, develops diamond-based lasers and breaks a world record for laser energy transmission. Disappointed about not finding good supplies of ultra-pure diamonds he decides to grow his own.
  • In 2011, Pascal Gallo meets Theophile Mounier, Christophe Provent and David Rats. They develop a CVD reactor to grow ultra-pure diamonds and create a business plan.
  • In 2015 LakeDiamond SA is incorporated.

Where is LakeDiamond based? How many people work at Lake Diamond?

  • LakeDiamond is headquartered in Yverdon.
  • The LakeDiamond state-of-the-art, environmentally friendly facility is located close to Lausanne in Switzerland.
  • Currently 20 people work at LakeDiamond.

Where are LakeDiamond reactors?

  • LakeDiamond reactors are based in a high security environment near La Chaux-de-Fonds in Switzerland.
  • For evident reasons, the precise location of LakeDiamond reactors is not disclosed.

Who else can certify of the purity of LakeDiamond products?

  • LakeDiamond’s diamonds, manufactured at its local laboratory, are ultra-pure — at least 50 times more pure than mined diamonds.
  • Purity is essential because the purer the diamond is, the greater its versatility and performance for industrial applications.
  • LakeDiamond assures thorough and accurate visibility regarding the properties of its diamonds. To this end, LakeDiamond operates a comprehensive range of advanced characterization tools, such as ultra-high precision microscopes (accuracy down to a few Angstroms), X-ray diffractometers, micro-photoluminescence setups, and Raman spectrometers.
  • The characterization methods allow checking the structural quality and purity of the diamonds produced, in the same way any industrial semiconductor company tests its material. This is critical in an industry where quality cannot be compromised.

What is so unique about LakeDiamond ICO?

  • LakeDiamond ICO is powered by Swissquote, an established Swiss banking group listed on the SIX Swiss Exchange. As part of the ICO, Swissquote will provide LakeDiamond with a number of services relating to technology, “know your customer” processes, and payment services. We believe this makes LakeDiamond’s ICO the first ICO ever supported and powered by an established banking group.
  • LKD is LakeDiamond time-based token sold during this ICO, each representing one minute of diamond production. Owners of tokens can use their LKD to produce diamond for their own use or capture production value when the company receives an order from an industrial customer. LakeDiamond token lifecycle is an innovative crowdfunding opportunity using blockchain technology and marks the first time a virtual token buys actual machine time. IMD international business school is currently writing a case study about LakeDiamond ICO.

Why did LakeDiamond decide to launch an ICO? Why is LakeDiamond taking the risk of an ICO instead of equity financing?

  • LakeDiamond has launched an Initial Coin Offering (ICO) to increase its production capacities of lab-grown diamonds for high-tech industrial applications
  • LakeDiamond is building a diamond factory to address high-tech market opportunities. To accomplish its main goals, LakeDiamond requires additional financial resources.For this reason, LakeDiamond has chosen an ICO as an alternative to traditional equity funding. The opportunity for the participants to the ICO is to capture a part of LakeDiamond’s turnover.
  • The ICO intends to provide LakeDiamond with the resources it needs to develop, both the company itself and its next generation of products.
  • The company currently grows diamond in its two Micro-Wave Chemical Vapor Deposition (MWCVD) reactors, with a production capacity of 15,000 plates per year. The objective of LakeDiamond 60 million Swiss francs ICO is to add fifty additional MWCVD reactors to meet the production capacity of 300,000 plates per year by 2020.

Can you explain how the token sale work?

  • LKD tokens can be exclusively bought by Swissquote clients between October 22, and December 11, 2018. Early 2019, LakeDiamond will organize a public ICO open to anybody interested in acquiring LKD tokens.
  • Prospective buyers shall successfully complete a KYC process conducted in partnership with Swissquote. Depending on the volume of tokens to be bought, the KYC process may include a video identification. Once the buyer is whitelisted, he/she shall indicate the address of his/her wallet where the LKD tokens are to be transferred. Approximately two weeks following the ICO, all LKD tokens shall be allocated.

What role do smart contracts play in this ICO?

  • The Blockchain technology allows the exchange of value in trustless networks without any corruption or duplicity of information.
  • At LakeDiamond, the blockchain is used to connect token owners to reactors, enabling them to produce their own diamonds.
  • Ethereum Smart Contracts guarantee financial transactions and transparency of time use during the diamond industrial process from the sale to the token conversion.
  • The protocol is open source and available on GitLab under the MIT licence for the code and a Creative Commons license for the documentation, free of use, and it can apply to any industry which produces goods and services.
  • The platform is built in a way to handle the complete LKD token life cycle.
  • A LKD owner is able to purchase diamond products on the LakeDiamond e-commerce website using its LKD tokens as a payment method.
  • Another option for an LKD token owner is to sell its tokens in relation to the completion of an industrial purchase, namely selling the time embedded it his/her tokens to allow Lakediamond to produce the diamonds ordered by an industrial client, to receive ether in exchange of its tokens.
  • LakeDiamond is also committed in improving user experience, while remaining strongly focused on business opportunities and transparency.
  • In LakeDiamond’s case, the diamond production and reactors use will be time stamped through a regularly audited process and logged on the blockchain for all to see.
  • This makes sure the production process is fully transparent and auditable both in real time and long into the future.
  • We want LKD token owners to have full insight into where and how their tokens are being used.
  • LakeDiamond’s timestamping and auditing process is being developed by prominent cryptography researchers such as Dr. Jean-Philippe Aumasson.

How did you define the token value?

  • Token price is defined as a function of diamond plates sales price.

What are the main drivers of LakeDiamond products value?

  • The following factors have an impact on the product value: — Diamond purity — Diamond special doping (incorporation of special elements) — Diamond crystal quality — Plate ultra thinness — Plate polishing — Product innovation — Market leadership — Production costs

How to use LKD tokens

There are Three ways of using LKD tokens:

  • LKD tokens can be used as a payment method to purchase diamond products (plates or brilliant cut diamonds) on LakeDiamond e-commerce website.
  • LKD tokens can be sold to Lakediamond so the latter can use the machine time embedded in said tokens to produce diamonds ordered by industrial clients. In this context, LKD owners will have the opportunity to capture the proceeds of the sale and be remunerated in Ethers.
  • Because LKD tokens are Ethereum-based, they can be sold at any time to another ERC20 compatible wallet (“peer to peer exchange”). LKD token secondary market is not managed by LakeDiamond and the company has no control whatsoever on the secondary market. It is possible that centralized and decentralized exchanges list the LKD token.

Does Swissquote provide a wallet or do subscribers need one?

  • Swissquote is acting as a custodian for people willing to contribute to LakeDiamond project via its ICO, it being specified that to benefit from this service, the token owner has to open an account with Swissquote..

How much did LakeDiamond raise so far?

  • Our target is 60.5 mio CHF.
  • We have reached our soft cap of 3MCHF before the start of the bank sale with Swissquote.
  • In the meantime we are not disclosing intermediary numbers.
  • However, given the traction of our roadshow so far we are confident this ICO will be a success.

What happens if LakeDiamond do not reach its target? What will LakeDiamond do if it does not succeed? Will the company still exist? Will LakeDiamond try financing it with equity and do you think investors will still follow?

  • Given the traction of our roadshow so far we are confident this ICO will be a success.
  • We have reached our soft cap of 3MCHF before the start of the bank sale with Swissquote.

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