How Can The DiaEx Diamond Exchange Expand Diamond Markets
The Glitzkoin diamond blockchain project is promoted by a second generation diamond veteran. The project is focused on eliminating inefficiencies that exist in the 90 billion dollar diamond industry and increasing, demand for the glittering stone. The project includes a comprehensive blockchain based, diamond trading platform, DiaEx.
To understand how the DiaEx diamond exchange, would improve the market for diamonds, it is important to know the major deficiencies present in the supply chain for the precious stone. The features of the DiaEx trading platform, have been designed to improve efficiency for the multibillion dollar industry.
Conventional Diamond Trade – Inefficiencies:
- The supply chain is dominated by middlemen (brokers), a single diamond could pass through a number of brokers before reaching the prospective buyer.
- The presence of middlemen cloaks the original price quoted by sellers from the buyers. Middlemen also inflate the price of the diamond by, adding their own profit margins to the price.
- It is not uncommon for sellers to overstate the ‘grade’ (quality) of their diamonds, in the hope of getting a better price for them.
- There have been cases where buyers have received synthetic or even fake stones, after being charged the price for natural diamonds. This obviously creates a negative sentiment among buyers.
- Fulfilling payment obligations can often mean, cumbersome bank procedures and significant bank charges. The diamond trade has always hoped for an alternative mode of payment – other than the banking system.
- The cost of doing business can be quite high and this, keeps away many smaller diamond traders.
It will be quite apparent that, the above issues creative a negative impact on the market for diamonds. Diamonds are expensive and buyers are weary of being cheated or getting diamonds of a lower value. We will now map these issues with the features of the DiaEx, this will clearly show how the diamond exchange can improve the market scope for the precious stone.
Highlights Of The DiaEx Diamond Exchange:
- Diamond traders operating on DiaEx, interact directly with the platform. There is no scope or role for middlemen and brokers.
- The problem of price inflation and cloaking are also eliminated in the absence of middlemen.
- Listings on the DiaEx diamond exchange, are limited to natural certified diamonds. This eliminates trade in fakes and synthetics.
- Since all diamonds listed are certified, the 4C parameters of the stone and other critical information, will be clearly mentioned on the accompanying certificate. Sellers cannot overstate the features of their diamonds.
- The Glitzkoin GTN token is used to settle payments on the DiaEx platform, this frees traders from the cumbersome banking system. Transfers done on a blockchain are also very economical.
- The DiaEx diamond exchange allows buyers and sellers of all sizes and irrespective of their location, to operate on the platform. There is a small transaction fee that is charged only when, a transaction is completed.
The Glitzkoin project makes the first attempt in decades, to make a positive impact on the diamond industry. There is little doubt that, diamond sales have been rather flat in recent years. While the industry is known to be quite conservative and slow to accept change, the fact that the project is an effort from an industry insider, will ensure wider acceptance.
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