CEDEX, the first ever certified blockchain based diamond exchange is causing a stir throughout both the crypto community and the diamond industry.

The objective of the CEDEX project is to disrupt the diamond world, by transforming diamonds into a publicly tradable asset. The company aims to achieve this goal by using blockchain technology to tokenize diamonds and create a decentralized, fair, transparent and highly liquid marketplace.

Up to now, the diamond industry has been completely closed to non-diamond professionals. Individual diamond holders had no way to sell their diamond without incurring as much as a 50% loss and buyers would be faced with significant markups, hindering liquidity. Existing diamond exchanges are not open to non-member dealers and with no standardized pricing, and no transparency the average investor is locked out.

This is where CEDEX comes in.

CEDEX uses a proprietary machine learning algorithm combined with blockchain technology to transform diamonds into a tradable asset class. Diamonds offer an attractive market proposition, as they are portable, becoming rarer, accepted all over the world and store value, while presenting a stable investment opportunity without being subject to high volatility.

From the jewelry market and industrial use alone, the diamond market is worth $80 billion a year, and the investment market is projected to open the door to an annual turnover of $350 billion.

How Does the CEDEX project work?

There are four aspects to the CEDEX initiative. First, blockchain technology has allowed for the tokenization of diamonds. Diamond smart contracts present a range of data, including historical trading data, the stone’s ownership and the gem composite. There is also the blockchain based exchange, which is a trading platform that brings together investors and diamond smart contract holders. The company’s proprietary machine learning algorithm, called the DEX, evaluates and rates the smart contract price so that those who are not diamond industry experts can invest in diamonds at a fair and objective price. Finally, the platform is powered by the CEDEX Coin, the cryptocurrency used for buying and selling diamonds on the exchange.

In pursuit of the goal to solidify supply, CEDEX has entered into partnerships with dealers offering access to inventory from over 1,600 suppliers. The demand from cryptocurrency holders looking for a less volatile market opportunity, and commodity investors is set to grow as trading takes off on this new asset class.

To generate a diamond smart contract, the diamond holder must upload the GIA certificate for each stone to be listed. Tokenization can be for a single diamond, for a share in a single high value diamond, or for a diamond basket. The exchange is designed for distributors listing their diamonds, or for peer-to-peer sales. While primarily, transactions are virtual, a buyer can have their diamond physically delivered, and the successful, secure completion of the delivery will trigger the delisting of the smart contract.

The DEX, the company’s machine learning algorithm is in large part what makes the entire project possible. It enables the user to receive an accurate price for any certified diamond, without requiring personal expertise or the services of a valuation professional. The DEX combines diamond financial indices data, gemological information and global inventory data to rate and categorize diamonds finding the best value, listed diamonds for a given price.

The CEDEX Coin and the token sale

All sales and purchases on the CEDEX exchange will be performed using the CEDEX Coin, eliminating all fiat currency transaction fees. CEDEX’s token presale will be taking place on March 16th, 2018, at 19.00 GMT. In total, 100,000,000 CEDEX Coins will be issued. 50,000,000 will be available for purchase, with 25,000,000 offered during the presale. A hard cap has been set at $40 million, and one CEDEX Coin will not exceed $0.80 in value.

Watch a game changing financial event this spring, as diamonds take their place as a tradable asset in the global online financial marketplace. To learn more about the project and the upcoming presale check out the company whitepaper at www.cedex.com.