November 17, 2018
Diamonds are expensive and trading in the precious stone can be expensive. In conventional trade, diamonds can move back and forth a number of times before, being sold. This involves multiple instances of book keeping, shipping charges and safekeeping costs. And even all this effort cannot guarantee a sale which means that, the entire process might have to be done multiple times.
DiaEx is a blockchain based diamond exchange, the brainchild of second generation diamond veteran Navneet Goenka. Designed as part of the Glitzkoin project, DiaEx is focused on improving efficiency and market scope for the multibillion dollar diamond industry. To put it simply, the platform will have a positive impact on the supply and demand of the glittering stone. The amazing thing is that, trading on this hi-tech diamond exchange, can actually reduce the operating cost of a business.
Buyers and sellers trading on the Glitzkoin diamond exchange (DiaEx), could be physically located at any point on the globe. The platform levels the playing field in the sense that, diamond traders of all sizes can operate on the platform. The entire cost of developing the DiaEx blockchain application, has been funded by the promoters and the ICO (Initial Currency Offering) that ended in June 2018.
Diamond listings on DiaEx are restricted to certified diamonds, no synthetics and no fakes. This has a positive impact on buyer sentiments, the certification process also eliminates the possibility of diamond sellers, overstating the 4C parameters of the stones that they sell.
The diamond supply chain has been overly dependent on middlemen for decades. Brokers as they are known in the industry, merely pass on diamonds from the seller to the final buyer. It is quite possible that a diamond would pass through multiple brokers before, reaching the buyer. Prices are inflated with middleman commissions, the final buyer is never aware of the price actually quoted by the owner of the diamonds.
The DiaEx diamond trading platform, puts an end to the role of brokers (middlemen). Buyers and sellers interact directly with the exchange, no price inflation and no price cloaking. This works to the benefit of the buyer and seller, buyers obviously see more realistic price tags. Sellers on the other hand, are exposed to buyers with a positive mindset.
Glitzkoin will vigorously promote the DiaEx diamond exchange. This does mean that sellers, will not have to invest substantial amounts in their business promotion efforts. Sellers will have access to groups of buyers that, they could never reach before and buyers, would have an extensive range of merchandise to choose from.
Banks have been the only route until now to transfer payments made for diamond purchases. Lengthy procedures and high bank charges, add overheads to the business in terms of time and cost. Glitzkoin deploys the GTN token as the mode of payment on the DiaEx exchange. This process is very much faster and much more economical, as compared to the banking system. Using a crypto token to settle payments also, makes the issue of multiple currencies and their conversion irrelevant.
There is a nominal fee charged for doing business on the DiaEx platform. Sellers wishing to trade on the Glitzkoin exchange, are required to make a refundable deposit of USD 1,000. Both sellers and buyers pay a 0.5% commission (each) based on the transaction value, on the successful completion of a transaction. These collections are utilized to maintain and update the systems.
Olga Rosina, the second diamond expert on the Glitzkoin team has this to say about the DiaEx exchange, ‘… the platform resolves some of the biggest weaknesses that, have plagued the diamond industry for decades. The entire application was designed with the industry in mind, DiaEx should be of global interest to diamond buyers and sellers at all levels…’.
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