World's First Diamond-Backed Cryptocurrency to be Launched

Finance and Trade
11/01/2016 16:45

Two companies behind the world’s first diamond-backed ‘cryptocurrency’ will start selling the digital currency on January 18. The asset class being used is colored diamonds, which the founders of the PinkCoin say have not lost value since tracking began in 1959. Precious Investments and its subsidiary BitGem Asset Management (BAM) will launch the PinkCoin crowdsale – a crowdfunding process in which investors acquire PinkCoin tokens – on January 18. The initial crowdsale will feature 5,000,000 PinkCoin tokens and the initial diamond asset pool has been valued at $5 million, meaning each token will be worth $1 at the beginning. The diamond pool will be valued on a regular basis, the firms said. The escrowed diamonds are insured by Lloyds of London and have been independently appraised.

“Pink and other fancy grade colored diamonds are the only asset class that have consistently increased in value well over 10 percent per year,” said Dr. Nataliya Hearn, chief executive officer of Precious Investments. “They are the only commodity that has not decreased in price since they began being tracked in 1959. This will only enhance the validity of PinkCoins in the marketplace.” Kashif Khan, president of Precious Investments, predicted the BitGems decentralized platform will become the leading marketplace for the online trading of diamonds. The terms of the crowdsale are in a PDF in annex.