Diamond-backed token company Carats.io recently launched its Get Diamond Index, which the start-up claims in the first official diamond market index of its kind. Simply put, the Get Diamond Index offers a secondary market for diamonds, which combines the stability of the precious stones with the liquidity of cryptocurrency. This essentially tokenizes the diamond market and uses the value of diamonds on the market to determine the price of the Carat token.
According to Carats' co-founder and CEO Avishai Shoushan, "Through blockchain technology, we can... create a financial instrument for the diamond world that is scalable and effective." Use of the blockchain also allows for transactions of diamonds to go through without the use of a middleman, lowering fees and any other possible entry barriers. The Get Diamond Index also provides a data-driven benchmark of any diamond's specific price point.
Diamond-Driven Blockchain Systems
The Get Diamond Index Tokenizes the Diamond Trade
Trend Themes
1. Blockchain-backed Diamond Trading - The use of blockchain technology in the diamond trade allows for the tokenization of diamonds and the creation of a secondary market for them that combines the stability of precious stones with the liquidity of cryptocurrency, offering disruptive innovation opportunities for the blockchain and diamond industries.
2. Diamond Market Index Creation - The creation of diamond market indices through blockchain technology offers promising new opportunities for providing reliable, secure, and scalable financial instruments for the diamond industry.
3. Direct Diamond Trade Transactions - The use of blockchain technology in the diamond trade allows for diamond transactions to occur without middlemen, leading to reduced fees and increased efficiency, offering disruption innovation opportunities for the diamond industry.
Industry Implications
1. Blockchain Industry - Blockchain companies can explore the diamond industry and the creation of financial instruments for tokenizing and trading diamonds to expand their business offerings.
2. Diamond Industry - The diamond industry can adopt blockchain technology and create a secondary market for diamonds and market indices through diamond-backed tokens, leading to more accessible and reliable financial instruments.
3. Cryptocurrency Industry - Cryptocurrency companies can explore the diamond industry and leverage the stability of diamonds to create new financial instruments to offer their customers investment opportunities in the form of diamond-backed tokens.