|image sources https://cedex.com/|
CEDEX- CEDEX.com is a global exchange that focuses on bridging the gap between the traditionadiamond industry and the innovative financial markets. With its extensive industry knowledge, CEDEX wants to engineer a ground-breaking change – enabling people to liquidate and invest in diamonds like any other financial asset, in a transparent and secure way.
The CEDEX exchange enables anyone to invest in individual diamonds, shares of a high-value stone or shares in a basket of diamonds (ETF). Investors, buyers and sellers have full confidense because the diamond value is transparent, using the DEX, our machine learning algorithm and blockchain technology that rates a diamond’s asking price; liquid because it creates a two-sided market by enhancing both the supply and demand, and standardization because CEDEX creates a unique benchmark value, rate and contract for every stone.
- The Technology
DEX – The Intelligence Behind CEDEX DEX, our proprietary machine-learning algorithm has been created to bring transparency and coherency to the diamond financial market. The DEX comprises three main elements: gemological composition of individual diamonds listed on CEDEX, diamond market financial indices and global inventory analysis. Diamonds are onboarded to CEDEX and classified by categories. The DEX has been designed to incorporate artificial neural network technology using all available diamond data.
- Try DEX for yourself!
See how easy, open and transparent it is to invest or trade in diamonds through CEDEX. Our DEX Beta version will give you a theoretical price for your diamond and rate it by its relative market value on the spot!
(for round carat stones 0.3, 0.5 and 1.0 carats. Once the DEX is fully developed it will be able to provide all type/size diamonds)
- CEDEX Coin – Powering The CEDEX Exchange
The CEDEX Coin is an ERC-20-compatible token traded over the public Ethereum blockchain. It will enable our participants to purchase diamonds on the CEDEX, transforming their assets into diamonds. Use of the CEDEX Coin will be driven by trading volumes generated on the CEDEX.com exchange and the demand of the diamond ecosystem. The CEDEX Coin will be listed on all major exchanges and will be transferable to other cryptocurrencies and fiat currencies. Coin will be the only means of payment used on the CEDEX exchange. CEDEX Coin amount is limited. Any coins offered for sale that are not sold will be burned.
- Why Invest in Diamonds
- New financial asset for investing with complete market transparency.
- Diamonds maintain their value even in uncertain times.
- Diamonds are a favored investment by the middle class and are now gaining popularity with millennials
- Diamonds are easy to carry, transport and are globally recognized.
- The value of diamonds is perceived as more stable than gold or silver.
- STATISTICS AND NUMBERS
- People have been trading diamonds for over 1000 years.
- USD 90bn annual diamond market turnover.
- We believe the diamond investment market can reach up to USD 350bn per year (currently only USD 1bn)
- In 2016, USD 128m carats were produced.
- Demand-supply shortfall by 2050 is estimated at 278 million carats, reflecting a deficit of over USD 40bn.
- Global reserves are estimated at 1.5 billion carats.
the CEDEX project was founded by a team of professionals in internet, online marketing, financial technologies and services and the diamonds industry. It is incubated and financed by TechFinancials, Inc., a publicly traded company listed on AIM, London Stock Exchange (Symbol: TECH). Leveraging the knowledge and experience of TechFinancials as a leading developer of financial trading technologies, CEDEX is being built using TechFinancials’ know how, experienced team of software and financial engineers as well as its online marketing knowledge. TechFinancials, being a potential major interest holder (90%) of the CEDEX project, as a public company will advise, monitor and maintain a transparent corporate governance conduct of the project, guaranteeing the highest standards possible in today’s token sales market.
- THE INNOVATIVE CEDEX SOLUTION
CEDEX is creating a platform to bring together diamond supply and investor demand for investments in diamonds.
On the supply side, CEDEX is targeting two main sources of supply:
a. Diamond Dealers – Dealers looking for a new distribution channel to list their stock have already expressed greatinterest in offering their diamond inventories, each of which is worth hundreds of millions of dollars, on the CEDEX Exchange.
b. Private Diamond Holders – Leveraging the online B2C of its business partner, TechFinancials online B2C expertise, CEDEX will gradually expand to more markets to open this new and exciting asset class to investors looking to diversify their portfolios. On the demand side, there are two main investor groups:
c. General Investors – Leveraging the online B2C expertise of its business partner, TechFinancial, CEDEX will gradually expand to more markets to open this new and exciting asset class to investors looking to diversify their portfolios.
d. Crypto Investors – Cryptocurrency holders looking to reduce volatility will use the CEDEX Exchange as an opportunity to lock in and realize the value of their crypto assets.
|image sources by https://cedex.com/|
- SELLING A DIAMOND ON CEDEX – CREATING THE DIAMOND-TOKEN
A private diamond holder or dealer wishing to liquidate his or her holdings will use the simple CEDEX tokenization onboarding process to create a smart contract. This contract represents the financial offering, including a sale of a single diamond, a shared investment on a high value diamond or a diamond basket sold to multiple investors (Diamond ETF).
Once the request is executed, the diamonds are delivered to the custodian and validated against their GIA certificate.
Once approved, the Diamond-Token is created and sent to the owner’s digital wallet. The diamond remains at the custodian for safe keeping.
The Diamond-Token holder has the option to list the Diamond-Token on the CEDEX Exchange or sell directly peer-to-peer.
|image sources by https://cedex.com/|
- INVESTING IN A DIAMOND ON CEDEX – NO EXPERTISE NEEDED
For the investor, CEDEX has created a proprietary algorithm (The DEX) that ranks diamonds on the CEDEX Exchange by category. Within each category, CEDEX ranks the diamonds by value, listing the best-value diamonds at the top.
The DEX – The DEX has been developed to solve one of the most significant obstacles in transferring diamonds into anasset class: lack of transparency and coherency in diamond-value appraisal. It ranks individual diamonds and their prices according to a sophisticated, proprietary machine-learning algorithm.
The DEX combines gemological data, diamond financial indices data and global inventory data to help investors and traders decide which diamond listed on CEDEX offers the best value for money. A beta version of the DEX is available for 0.3-, 0.5- and 1-carat round diamonds.
- THE CEDEX COIN – EXPANDING TO THE DIAMOND ECOSYSTEM
The CEDEX Coin is implemented as an ERC20-compatible Token over the public Ethereum blockchain.
CEDEX Coin will be the only means of payment permitted on the CEDEX. In addition, all service providers will pay/receive CEDEX Coin as fees, which will drive the CEDEX Coin to be widely used by the diamond industry. CEDEX Coin is fractionally divisible, transferable and fungible.
Demand for CEDEX Coins will grow proportionately to the number of active investors using the platform. The number of active users is expected to grow rapidly in the early years as the CEDEX Exchange opens new markets, either by expanding its own operation or via licensing the software to local entities. As there are several projects offering tokenization of diamonds, (e.g., Carats.io, the Israel Diamond Exchange (IDE), D1 Coin and Everledger), we believe it is just a matter of time before gem labs will use the CEDEX or other platforms to load up the stones on to the blockchain and create Diamond-Tokens. As the use of CEDEX expands, it would be natural for all tokenized diamonds transactions to be made using CEDEX Coin and diamond cryptocurrencies to reduce transaction cost, time of execution and increase security.
- WHY BLOCKCHAIN TECHNOLOGY?
The CEDEX project uses blockchain technology to tokenize diamonds. In the first phase, Diamond-Token issuance happens via a simple process initiated once a diamond holder lists a diamond for trade. The simple interface creates a smart contract on the CEDEX-platform backend. This contract represents a diamond’s gemological data and any other information to allow for the creation of a financial product that represent the underlying asset, i.e. diamonds. As the blockchain-technology based CEDEX ecosystem evolves, we anticipate the investment market will adopt diamonds as a new asset class for trading. Tokenizing diamonds is beneficial to the entire ecosystem in many ways:
No additional transportation and insurance are incurred as long as trade remains within the ecosystem.
All transactions using the CEDEX Coin save fiat-currency transaction charges.
The diamond’s origin and all transactions are documented on the Diamond-Token.
The execution of trades is executed quickly and efficiently, or P2P, without any third-party involvement.
Open blockchain technology allows anyone to collect, aggregate and analyze the data for their own purpose.
- THE CEDEX PROJECT COMPANIES
The CEDEX Exchange Company: Will act as operator of the exchange. Once the CEDEX Exchange is launched, it will offer financial services and complex products.
Token Sale Company: The Company will manage Token sales. Once the Exchange is launched, it will initiate the first diamond purchases to allow advanced financial services and provide the ability to initiate purchases using CEDEX Coin.
Technology Company: The Company will continue the development of the CEDEX technology.
THE CEDEX COIN SALE OFFERING The maximum number of Tokens the Token Sale Company will issue is set at 100,000,000.
In the Sale Offering, the public will be offered to purchase up to 50,000,000 Tokens.
The CEDEX Coin creation event will start at 19:00 GMT on January 12th 2018.
All Token supply will be created during the Token Offering.
Any Token offered for sale to the public and not sold will be destroyed.
The CEDEX Coins will be sold at a rate of 1ETH = 500 CEDEX Coins.
Users will be able to purchase CEDEX Coin in Ether, Bitcoin and fiat currencies according to
the available rates in the market.
A portion of the supply will be pre-allocated to CEDEX founders and team members in a vesting schedule, as listed below.
The company will hold 20%-25% of the CEDEX Coin supply for future development and marketing expansion or for purchasing additional diamonds in order to expand the financial offering of the CEDEX project.
- USE OF PROCEEDS
Using the proceeds collected from the Token sale, the Token Sale Company intends to develop and support the CEDEX Exchange and develop additional functionality for use of the CEDEX Coin on the CEDEX Exchange.
The Token Sale Company will use CEDEX Coins to purchase diamonds using CEDEX.com to kick start the exchange and to generate the initial diamond inventory required for some of the financials instruments offered by CEDEX.com.
The majority of the proceeds will be used to develop and operate and market the CEDEX platform and to obtain regulation and licensing in different locales.
- MARKET TRENDS AND POTENTIAL
The current diamond B2B trade market is valued at ~US $60 billion a year, with consumers purchasing merchandise worth US $20 billion annually. Only 5% of this US $20 billion market is being purchased for investment purposes.
There are major global forces seeking to introduce diamonds to the finance market, such as the Indian Commodity Exchange, RapX collaboration with Bloomberg and the Singapore Diamond Investment Exchange, which are mostly focused on the B2B or derivative markets.
The transformation from merchandise to financial asset class will increase investment volume substantially.
To evaluate the potential market size for investment diamonds, we have analyzed the gold market. This market has a turnover of $700 billion, with gold and gold derivative investments totaling 80% approximately, or US $550 billion. The remaining 20% represents jewelry and industrial use.
The current diamond market turnover is approximately US $90 billion, with an investment value of only US $1 billion. By removing the market barriers described above, we believe diamonds will become the leading investment assets for investors seeking to hedge currency or get exposure to this alternative asset class.
This shift could potentially increase the diamond investment market from $1 billion to $350 billion, assuming the relationship between investment turnover and jewelry and industrial is similar to gold – 80% vs. 20%.