Diamond exchange CEDEX has launched its trading platform, allowing investors to buy and sell tokenized diamonds using Ethereum’s blockchain technology.
According to a report by Finance Magnates on March 27, CEDEX has secured over 6,000 diamonds — worth over $50 million — which will be traded on its platform. Each diamond listed on the exchange will be represented by an ERC-721 smart contract on the Ethereum blockchain, allowing for ease of transfer between buyers and sellers without physically moving the diamond. These tokens are a ‘digital certificate’ and represent ownership; including details such as historical trading data, location, owner number and photos.
CEDEX is also planning to launch a ‘Diamond Basket’ exchange-traded fund (ETF) which is currently in development. The ETF will adhere to generic listing standards and will allow investors to trade diamonds as an asset class. Traders will be able to buy and sell one ‘basket’ of diamonds owned by multiple parties.
Co-founder and CEO of CEDEX, Saar Levi, was quoted in the report, saying:
“The vast inventory available combined with CEDEX unique technology opens up for traditional and digital markets the opportunity to develop financial instruments that will initially create the liquidity needed to jumpstart our vision – transforming diamonds into a new asset class.”
With the launch of the exchange, CEDEX hopes to open the diamond business to general investors who are not necessarily ‘in the know’ when it comes to the valuation of diamonds, but who may wish to buy diamonds as a store of value — a hedge against inflation. The exchange serves not only to increase the liquidity of the diamond market, but also to give both buyers and sellers a fair market value for their stones.
The CEDEX Coin
CEDEX raised around $34 million (approximately $20 million in the private sale stage, and a further $14 million in its ICO) in its token sale last March. The CEDEX Coin is an Ethereum-based ERC-20 token and will serve as the backbone of the CEDEX exchange — all trading activity will be conducted solely using the token. At the time of writing, CEDEX is priced at 0.00023 ETH (around $0.037 USD) per token.