Today we are going to take a look at a new ICO from a company called Glitzkoin.
Glitzkoin is a cryptocurrency explicitly developed for diamond trading. There are three main pillars to the project: integration of blockchain technology into the diamond supply chain; tracking and tracing diamonds; and creating a decentralised diamond trading platform.
Let’s take a closer look below at what this will entail and at the details of the ICO.
Traditionally diamond trading is carried out through personal contact. Valuations however diligently undertaken are to some extent based on guesswork. According to industry insiders, not all diamond dealers can be trusted. Glitzkoin aims to introduce transparency into this currently obscure market.
Currently, the market for rough diamonds is around $15 billion a year, and that for diamond jewellery is approximately $79 billion.
The Glitzkoin network will connect the complete diamond market chain including end users, retailers, diamond market markers, mining companies and polishers enabling any two parties to carry out trustless transactions with full transparency. The value of any diamond will be visible on the blockchain.
The diamond exchange has three elements:
· Gem composite — which indicates the quality of the diamond
· Parallel composite — which shows how rare the diamond is
· Indices composite — which provides information for traders concerning the diamond industry
The exchange incorporates AI neural network technology based on all diamond data.
An individual wishing to sell a single diamond uses the exchange to create a smart contract. This diamond will then be delivered to a custodian who will validate it using recognised industry certification standards.
Once approved, a Diamond-Smart Contract will be deposited in the owner’s Glitzkoin wallet while the custodian keeps hold of the diamond. The Diamond-Smart Contract may be listed on the Glitzkoin exchange or sold directly to a buyer.
The same process applies to owners of a share in a high-value diamond and diamond baskets sold to traders. The purchaser of the Diamond-Smart Contract will be able to request delivery of the actual diamond(s) and once received the smart contract will be delisted.
Sellers will be able to sell a complete diamond with a single smart contract or create multiple smart contracts for the diamond allowing several buyers to purchase shares in the diamond. This innovation will for the first time enable private investors the opportunity to invest in highly valuable diamonds to benefit from their speculative and volatile market position.
The Glitzkoin track and trace blockchain is essentially a vast inventory of every diamond that is registered on the platform, demonstrating their authenticity and ownership including the provenance from the original mining, cutting, polishing, and trading.
· Q2 2018: Public token sale and development of the diamond exchange.
· Q3 2018: Listing GLT on global exchanges and beta testing of Glitzkoin diamond exchange
· Q3 2018: Development of diamond track and trace platform
· Q4 2018: Launch of decentralised exchange and track and trace
· Q1 2019: Add more features to the diamond exchange
One billion GLT will be minted. Of this 24.5 % will be available for purchase. Of the remainder, these will be distributed as follows:
· Market making: 20%
· Community: 20%
· Management: 35.4%
The ICO began on 16th March 2018 and will continue until 25 June 2018.
Bonuses are available depending on total token holding. Those holding 500,000 and more will receive 10% bonus; 200,000 to 500,000 8% bonus; and 10,000 to 50,000 5% bonus.
· Token: GLT
· Total coins: 1 billion
· Price: 1 GLT = 0.2 USD
· Soft Cap: 4,200,000 USD
· Hard Cap: 41,800,000 USD
· Platform: Stellar
· Payments accepted: BTC, ETH, XLM
· Minimum investment: 100 USD
· Country: Estonia
The ICO has been reviewed by ICO rating sites and has received generally good ratings. Here are some of the main ones:
So some solid ratings there and the project seems to be generally well received.
This is a great idea for an ICO and a case where blockchain technology can provide a solution to real-world problems.
Everyone knows that the diamond industry is mired in controversy with blood diamonds being amongst the biggest issues, but also issues of fakes and sub-standard diamonds too, as well as criminality.
So to place the entire process on the blockchain should help to cut out a lot of these problems and provide transparency and legitimacy throughout the process from mine to shop.
As ever, the question will be convincing all the parties involved to sign up to the blockchain, but hopefully that will come if they can convince at least a few of the major players to do so.
The idea of people being able to buy shares of diamonds is really good and could allow people to invest in something that hadn’t previously thought of or been able to afford.
So overall this looks like an interesting ICO and with over $10m already raised the future looks bright for Glitzkoin.