Cedex claims to be the world’s first blockchain-based diamond exchange. Find out how it works today in our review.
What Is Cedex?
Cedex, found online at Cedex.com, is a certified blockchain-based diamond exchange that promises to transform diamonds into a new asset class.
The token pre-sale for CEDEX tokens starts in January 2018. All purchases on the Cedex platform will be completed in CEDEX tokens.
Cedex is a global diamond exchange that aims to bridge the gap between the traditional diamond industry and new financial markets. The goal, according to the website, is to “engineer a ground-breaking exchange – enabling people to liquidate and invest in diamonds like any other financial asset, in a transparent and secure way.”
How Does Cedex Work?
Using CEDEX, anyone can invest in individual diamonds, buy shares of a high-value stone, or purchase shares in a basket of diamonds (like an ETF for diamonds).
Investors, buyers, and sellers can have full confidence in the platform because it’s all transparent and built on the blockchain. The platform uses machine learning algorithms to provide accurate ratings for a diamond’s asking price (like whether it’s a fair price, a rip-off, or an under-valued asset).
The Cedex diamond rating system is called DEX. It’s described as a proprietary machine learning algorithm designed to bring total transparency and coherency to the diamond financial market. There are three core components of the DEX, including:
- Gemological composition of individual diamonds listed on Cedex
- Diamond market financial indices
- Global inventory analysis
After diamonds are onboarded onto Cedex, they’re separated into categories. Investors will be able to easily view these categories to check the best diamond investments.
The end result of all of these technologies is that anyone – even someone with no knowledge of diamonds or how they’re rated – can invest in diamonds. Average investors can purchase ETF-style investment vehicles built around diamonds, for example. Investors can purchase shares in high-value diamonds. They can check the ratings and expected value for different diamonds listed on the Cedex platform, then enjoy profits as values rise over time.
DEX Can Already Rate Your Diamond
Cedex’s DEX rating system can already rate your diamond. You can visit Cedex.com, then enter your diamond GIA certificate number into the platform. You enter your diamond carat size, then receive an immediate valuation on the value of your diamond.
Right now, DEX only supports diamond carat sizes of 0.3, 0.5, and 1.0 carats. Once the platform is complete, however, it will be able to provide all types and sizes of diamonds.
How Does The CEDEX Coin Work?
The Cedex platform revolves around the use of the CEDEX coin, which is an ERC20-compliant token built on Ethereum. It allows participates to purchase diamonds on Cedex, among other in-platform tasks.
The value of the CEDEX coin is based on trading volume on the Cedex platform. As trading volume rises, the demand – and value – for the token is expected to rise.
You won’t be able to use any other payment method on Cedex. The CEDEX coin will be the only means of payment used on the exchange.
Who’s Behind Cedex?
Key members of Cedex include CEO and co-founder Saar Levi and founder Ronen Priewer.
Saar has been an entrepreneur since 1993 and has 15+ years of experience in global financial markets, including senior roles at Lehman Brothers, Barclays, and other institutions. Priewer, meanwhile, is an entrepreneur with 20+ years of experience in the diamond industry. He’s a sought-after diamond consultant who has previously created diamond brands LeLumiere and Masaor.com.
The Cedex team came together in Q1 2017. They’re based in Tel Aviv, Israel. Cedex hopes to launch its platform by Q3 2018.
A company called TechFinancials owns 90% of the venture, and is providing $400,000 of initial funding to the company.
The Cedex Token Sale
Cedex is issuing a maximum of 100,000,000 CEDEX tokens. 50,000,000 of those tokens are available during the token sale, which is scheduled to start on January 12, 2018 at 19:00 GMT.
Tokens will be sold at a rate of 1 ETH = 500 CEDEX coins. Any tokens unsold during the sale will be destroyed.
Of the remaining total supply, 10% is reserved for the team and advisory board, 5% for the founders, 3% for outsourced services, and 2% for the token sale company (used for future development and marketing expansion or for diamond purchases).
There’s also a pre-sale, during which up to 9% of CEDEX coins will be sold (this total will be deducted from the crowdsale amount). You’ll receive a 30% bonus for participating in the token pre-sale.
Benefits Of Cedex
Cedex believes that investors can enjoy a number of powerful benefits by investing in diamonds through the Cedex platform. Those benefits include all of the following:
- New financial asset for investing with complete market transparency
- Diamonds maintain their value even in uncertain times
- Diamonds are favored investments by the middle class, and are now gaining popularity with millennials
- Diamonds are easy to carry and transport, and they’re recognized around the world
- The value of diamonds is perceived as more stable than gold or silver
Cedex also mentions the fact that people have been trading diamonds for over 1,000 years, and that there’s $90 billion of annual turnover in the diamond market. It’s a well-established market that’s expected to continue growing over time. However, investors struggle to access the market like they do with gold and silver.
Cedex wants to transform diamonds into a new asset class built on blockchain technology. You can use Cedex to view ratings information for diamonds, then invest in diamonds in a transparent way. Cedex opens up new investment opportunities, like the ability to invest in diamond-based ETF-style investment vehicles, or the ability to buy shares in high-value diamonds.
To learn more about Cedex and their upcoming token sale, visit online today at Cedex.com.