What Is Diamco?

Diamco is a blockchain-based project that seeks to create a community that will provide the diamond industry, cryptocurrencies, and financial and investment markets with a wide variety of revolutionary tools that will solve some of the issues and problems the industry faces such as lack of liquidity, stability, and portfolio diversification.

Diamco will operate using two tokens: Al’ Coin and Diam tokens. The Al’ Coin is backed with actual diamond and is created through regular auctions that are backed by smart contracts. The Diam will be the platform’s internal token and will be used to pay transaction fees, purchase Al’Coins during auctions, customer protection during transactions, and as a compensation means during redeeming of Al’Coins.

The process of purchasing diamond on Diamco begins after a company issuing the AL COIN token initiates an auction for a specific amount of diamonds. Buyers interested in the diamond can also transfer deposits also known as bids to the auction smart contract highlighting the desired amount of purchase and making the payment in cryptocurrency or Diam tokens.

Once the auction bidding is completed, Diamco converts the cryptocurrency to fiat and sends it to the SPV’s bank account under the supervision of an administrator. Similarly, an auction reserve fund is created in Diam to ensure that the sellers fulfill their obligations. The SPV employees an agent to purchase and deliver the diamonds to the buyers in regards to the Diamco standard.

The SPV and the administrator ensure that the supplier delivers the polished diamond to a safe location, which could be either the Dubai Bank or Dubai Diamond Center. After the administrator confirms the diamond have arrived at the safe location, he puts a signature on the auction’s smart contract and the platform generates AL'COIN tokens equal to the diamonds received.

All the participants of the auctions will receive AL'COIN tokens equal to the amount of diamonds requested. Buyers will also receive a 10% cashback of the total purchase amount in form of Diam tokens.

Diamco is made up of a team of professionals with vast experience in the diamond industry, investments, blockchain technology, fund management, and technology entrepreneurs, which will help Diamco strategically develop and guarantee users of the quality services that will be issued on the platform.

One of the major challenges that Diamond faces as an asset is lack of liquidity. Diamco will address this challenge through the Diamco Standard that will integrate liquidity into the diamond industry by commoditizing diamond, which will deepen the market.

Diamco will use blockchain technology to ensure that there is transparency in the generation of Diam tokens and make it possible for users to sell diamonds in the secondary markets. Blockchain will also record the ownership of the tokens in an immutable ledger to prevent forgery.

Diamco will enable users to purchase diamond with cryptocurrencies, which will be more convenient compared to purchasing diamond using the traditional payment methods.

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