How This Singaporean ICO Can Bring Diamonds to Your Doorstep for Half the Priceby Fintechnews Singapore August 20, 2018
In the diamond industry’s race towards modernising a traditional symbol of luxury, blockchain has come front and center into their efforts. Many see immense potential in incorporating the technology into battling fake diamonds, or combating the issue of blood diamonds.
One well-known example is the De Beers diamond company, which has embarked on a project to put their diamonds in a blockchain network–and they’re definitely not the only ones.
In the name of disruption, another Singapore-incorporated company is planning to join that blockchain race. Their goal, unlike most traditional diamond mining companies, could also help solve the issue of oppressed diamond miners.
And its methods could help reduce the price of genuine, carbon-based diamonds by approximately half.
Simulated Setting, Real Diamonds
The Pure Diamond Farm company already developed a method to grow real, pure diamonds in a lab. The diamonds according to the company are not the artificial cubic zirconias, but honest to goodness diamonds made from carbon, only produced in simulated settings.
“Our state-of-the-art manufacturing and research facilities of lab-grown diamond have developed a technique to produce rare diamond including colour diamond such as red diamond, blue diamond and rainbow diamond,” said Hideyuki Abe, the president of Pure Diamond Lab Co., Ltd.
According to the company, a lab-grown diamond could help solve environmental issues in the industry such as diamond conflicts, harmful impact on soil, harming water resources, gas emissions and immense electricity usage.
Their goals go beyond just creating simulations of what already exists.
Growing diamonds in-house allows the company to create diamonds without any impurities, purer than those created in the earth. Being able to simulate the process in a lab also allows them the freedom to produce unique creations like the aforementioned red diamonds, or even a rainbow diamond.
Pure Diamond Farm is able to halve the market price of a diamond by changing up the whole supply structure to remove mining altogether.
The research on their lab-grown diamonds have not been conducted on a commercial basis yet, but it has the names of the University of Tsukuba, Tsukuba Science Expo Memorial Foundation, and the well-known Sumimoto Electric behind their backs.
And They’re Raising an ICO to Achieve Those Market Dreams
The company admits that they aren’t the only ones cultivating diamonds in labs. There is Diamond Foundry, which saw an equity boost from Lenoardo DiCaprio, and the aforementioned De Beers company have their eye on patenting their own lab-grown diamonds as well.
With so many eyes on the ball, speed is of the essence, which leads the company to eschew traditional fundraising methods to opt for an ICO.
Pure Diamond Farm aims to raise US$200 million which would go into plant and equipment, intellectual property rights, and more R&D.
Another section of the raised money will be set aside to develop a Pure Diamonds Farm blockchain network, in a bid to stay abreast of current diamond trends and ensure that any diamonds traded on it are genuine.
Lab-Grown Diamonds on Blockchain
“Pure Diamond Farm Singapore will introduce its cryptocurrency, Pure Diamond Coin that is associated with its lab-grown diamond. The token connects lab-grown diamond by blockchain and is distributed by the token. It is supported by physical lab-grown diamond, hence unless the value of diamond declines, the token value does not depreciate,” said Chris Yang, the president of Pure Diamond Farm Singapore.
“We aim to use Pure Diamond Coin in the real world to make transactions in the supply chain. This means Pure Diamond Coin can be distributed in the diamond market and be utilised to purchase everyday products,” he said.
Down the line, Pure Diamond Farm will be creating tokens that are backed by actual, lab-grown diamonds, and according to the ICO’s white paper, the ICO tokens should be able to port over to the network in exchange for ownership of lab-grown diamonds.
Unlike diamonds that are mined naturally, lab-grown diamonds are fully traceable through blockchain, and even includes information like production location and time of production. There would be no issues of supply either since they will be manufactured in a Japanese laboratory.
Do note that the white paper does not guarantee that any ICO tokens bought will be tradable with diamonds.
Presales will start on September 1 2018, with one PDC token going for 12 cent equivalent. The total issue upper limit is 150% for all tokens, with sales ending once the company has raised US$200 million.
For now, the PDC tokens will be on the Ethereum network, but the team will be moving to their own Pure Diamond network once development is complete via a hard fork.
PDC token, after the completion of the Ethereum ERC 223 phase and becoming independent from the Ethereum ERC 223 network, will run on its own network and can be swapped for a token on the Pure Diamond Network system, which allows owners to buy their very own diamond.
According to the company’s roadmap, sales of actual diamonds should begin in September this year, with presentations of the diamond’s Type-0 in October. Research for rare diamonds, like the red or rainbow diamonds, should begin in April next year. A fully-operational manufacturing plant should start mass-producing diamonds by July next year.
The white paper can be found here for more information on the ICO token and the company’s goals. More information about the company can be found on its website. Do note that this is not an investment advice.
Dislaimer: Readers should do their own research before taking any actions related to the company. Fintechnews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.