diamDEXX is one of the latest companies to enter the growing stablecoin market. One of the biggest problems for crypto investors is the level of price volatility in the marketplace. Cryptos are a very small market when compared to stocks and bonds, which means that money flows have an outsized effect on crypto prices.

Stablecoins have been used as a safe harbor in the volatile sea of crypto prices. Most stablecoins are backed by the US Dollar, which presents some difficulties.

The US Dollar is a fiat currency and has no backing whatsoever (‘fiat’ means ‘let there be’ in Latin). Add to that the fact that some of the stablecoins out there have a questionable value, and it is easy to see why there is a lot of room for new offerings.

diamDEXX

The solution to both of these problems is a stablecoin which is backed by something that is valuable, easily traded and simple to sell just about anywhere. That is exactly what diamDEXX has created. The new DIAM coin is as good as diamonds and can even be traded for physical diamonds that are held in registered vaults around the world!

diamDEXX Introduces Stability to the Market

It is impossible to say when diamonds became a sought-after commodity, but today they are universally bought and sold globally. Because diamonds have a stable value, they are a perfect way to back the value of a stablecoin.

diamDEXX has created the DIAM coin, but it has also developed a full-spectrum platform to facilitate tokenized trade in diamonds. The DIAM token is tied to a known amount of real diamonds, and the diamDEXX platform lets people everywhere buy into the platform with the world’s most popular cryptocurrencies.

The fact that the DIAM token can be exchanged for actual diamonds via DiamDrop makes it a unique stablecoin. Fiat currency has its own set of issues and many crypto investors are looking for ways to move their assets out of a very flawed monetary system.

Diam

Fiat Currency isn’t Stable

There hasn’t been a real monetary crisis in the world’s biggest economies in quite a while.

One of the forces behind Bitcoin’s popularity is the growing distrust of central banks and fiat currency. Initially this dynamic helped Bitcoin rise in value. As it became more popular, the wild price swings made Bitcoin less attractive to investors.

Using fiat currency as an anchor for a token is a good idea, as fiat currency has been less volatile than cryptos over the last few years. Over a longer time horizon, it may be a case of jumping out of the cooking pan and into the fire.

Fiat currency has a long history of problems. When there isn’t some sort of physical anchor for the value of currency, central banks and governments tend to issue far more of it than is justified by the underlying economic situation. Arguably, this is what has been going on in the USA for at least a few decades and it makes many people very nervous.

A Diamond Anchor

diamDEXX sees the rise of cryptos as a big opportunity for both investors and everyday people alike. Now that there is a unified crypto infrastructure globally, platforms like diamDEXX are able to connect people everywhere to a safe way to store their value.

The way the DIAM token works is extremely simple. One DIAM token is pegged to the market value of $1 USD, but instead of being backed by fiat currency, it is secured by more than $150 million USD worth of diamonds that are stored in fully audited vaults around the world.

Why Diamonds?

diamDEXX created a network of smart-contracts, audits and other certification protocols which ensure total transparency for everyone involved. Instead of having to trust a company who may or may not be honest about the cash holdings they claim to be using for backing a stablecoin, diamDEXX has built-in transparency from day one.

diamDEXX is Built by Professionals

There have been a lot of new companies entering the crypto space. Some have been founded by professionals with lots of business experience, but many weren’t. diamDEXX is definitely one of the crypto companies that is being run by a group of professionals who have a tremendous depth of real-world experience.

The Team

Jeremy Dahan, who is the CEO of diamDEXX, has a long history of creating value in the private sector.

Sir Christopher Pissarides, who won a Nobel Prize in Economics for his work on the theory of research frictions and macroeconomics is helping to make diamDEXX a useful stablecoin for people around the world. He has taken on a role as economic adviser at diamDEXX.

Prof. Pissarides is also the School Professor of Economics & Political Science and Regius Professor of Economics at the London School of Economics, as well as the chairman of Centre for Macroeconomics (which works with Cambridge University), the London School of Economics, the Bank of England and the National Institute of Economic and Social research.

diamDEXX has Zohar Shamir, who was a Director at Viber as a strategy and finance adviser. Shamir also has worked as an auditor, and currently is the CEO of Fulgaro, which is an internet company that generates more than $100 million USD a year in revenue.

Jean Fages is the Blockchain CTO and has more than 18 years of experience in numerous areas of program development. He created the smart contract for the DIAM stablecoin, and can help diamDEXX grow into a waiting marketplace.

It isn’t difficult to see that diamDEXX is bringing a lot of talent to the world of stablecoins. The group that is developing diamDEXX has the skills needed to make the platform a success, and give people the ability to hold a token that isn’t going to fall apart.

The Need for Solid Assets

Fiat currency is almost universally trusted by people in developed economies. It is easy to understand why.

The vast majority of people that are alive today weren’t around for the stagflation of the 1970’s, and hyperinflation is an abstract concept that doesn’t apply to ‘real life’ (even though it has happened a few times over the last 30 years).

Without the ability to trade with a stable currency, society just doesn’t work.

People are left in the role of a speculator, even if they just want to save their wages (see Venezuela as an example). As global governments spend more, and central banks move toward ever-more radical monetary experiments, another major financial crisis may be in the cards.

Government Debt isn’t Always a Great Investment

Ever wonder why there are so many old bank notes out there that are ‘collectors items’?

The simple fact is that fiat currency doesn’t have an amazing track record. Even when it is able to survive for more than a few decades, it always loses a lot of buying power. $35 US dollars would buy you an ounce of gold in 1971, and today it takes around $1280 USD.

The situation with debt is even more problematic. Prior to 1971, money represented gold. Not that everyday people could exchange dollars for gold, but at least the idea was there. Today, money is debt and nothing more.

Despite the fact that the world’s biggest governments are creating debt at a rapid pace, government debt is considered one of the safest investments a person can make. This may have been true a century ago, but today, it seems like terrible investment logic.

diamDEXX Makes it Easy to Invest and Diversify

Many people are surprised by the fact that there is an international market for diamonds, much like gold or silver. One of the most popular platforms for the international diamond trade is IDEX, which is what diamDEXX allows anyone to access today.

Now it is easy to swap your fiat for cryptos, and buy DIAM tokens which can be stored along with other tokens in the diamDEXX ERC-20 wallet. In addition to acting as a stablecoin that will maintain its value against cryptos, the DIAM token makes sure that a fiat currency collapse won’t wipe out its backing.

Process

Purchase Diamonds at a Discount

The ability to swap DIAM tokens for actual diamonds makes diamDEXX a viable option for people who may want to take delivery of the underlying asset that backs the token, which is a rarity in the world of cryptocurrencies.

It’s possible to purchase physical diamonds at a discount using Diamdrop. This is a website which allows you to purchase Diamonds from manufacturers around the world:

With Diamdrop, you have access to a wide range of diamonds, directly from their manufacturers. Doing this, we help our customers avoid annoying intermediaries: No broker, reseller, or physical shop will take a commission on your diamond! This makes purchasing diamonds both cheaper and easier.

Diamdrop

A Real Safe Haven Asset

The infrastructure that has grown up in the cryptocurrency space gives people everything they need to work outside of the established financial system.

Now diamDEXX is taking tokens to the next level with the DIAM token. Instead of buying a token that relies on the hope of higher prices, investors can have confidence in the intrinsic value that diamonds lend the the DIAM token.

diamDEXX has created an amazing system that allows traders and investors to leverage access to the international diamond market in order to hold a stable asset. The company is providing a unique service that will likely find a welcome home in the ever-growing global crypto space.

Useful Links


Buy Crypto    Trade Crypto
eToro Risk Warning: 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Avatar

Posted by Nicholas Say

Nicholas Say was born in Ann Arbor, Michigan. He has traveled extensively, lived in Uruguay for many years, and currently resides in the Far East. His writing can be found all over the web, with special emphasis placed on realistic development, and the next generation of human technology.


All content on Blockonomi.com is provided solely for informational purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, product, service or investment. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate.

Leave a reply

Your email address will not be published. Required fields are marked *