The lastest disruptive online diamond sales platform, a "reverse auction site" startup called Legemdary, purports to serve the interests of diamond buyers and wholesalers by cutting out retailers altogether, writes Rachelle Bergstein for Forbes, introducing the company to a global audience. Legemdary calls itself the only straight to wholesale online diamond marketplace, connecting prospective engagement ring buyers directly with wholesalers who bid to supply the consumers' needs. As Bergstein explains, the user creates a ring by picking out a stone and a setting and then waits for one of the 21 participating sellers to submit their bids. Within 10 to 20 minutes, says Jason Elhomsi, one of the three founders with no jewelry background, the first bid pops up. “We’re typically seeing five to 10 bids on each ring," he says. "They tend to be close together, but you can see a 10-15% difference between the highest and the lowest bid.”
The company claims its system will ensure buyers are getting the lowest price possible, and says wholesalers are happy to participate. Elhomsi says there are currently five De Beers sightholders working with Legemdary, and that all of the wholesalers they approached were surprisingly open to their business model. “They’re not moving diamonds like they used to,” he says. Co-founder Justin Insalaco recalls meeting with a sightholder before founding Legemdary: “He said even if we did it half-assed, it would still be completely disruptive to what everyone else is doing.” So far, Legemdary - the brainchild of the team at 3BDreams, a marketing think tank that Insalaco founded - is self-funded at around $200,000, and they’re not yet meeting with investors. They’re officially launching this summer and up until now, have relied exclusively on word of mouth. Insalco says their idea arose from the stress and uncertainty of buying a diamond ring, while their attempt to ensure the lowest possible price is part of their effort to make the "beautiful" diamond experience available to everyone.