Diamond (DMD) – Monetary Cloud Mining Wealth Creation System?
DMD Diamond (or just DMD for short) is a new cryptocurrency designed specifically to provide a 25% annual interest rate on any funds held by investors.
What Is Diamond?
DMD is managed by the DMD Diamond Foundation, with Aleksander Mesor of Manchester, UK listed as the CEO. Prior to this, Mesor spent 10 years as a bilingual teacher and interpreter for the Bury Council, one of the local authorities in the Manchester area.
The foundation has been active, according to LinkedIn, for around three years; the DMD website lists several other executives and staff members such as CVO Helmut Seidl, CTO Christian Knoepe, and several others.
DMD is a cryptocurrency, at time of this writing valued at about $10 USD per coin on open exxhanges. DMD is capped at only 4.38 million coins, all of which are available for purchase exclusively through the foundation by engaging in mining other digital currencies and then trading them for DMD.
Because of its built-in scarcity, and because DMD is designed to provide an annual 25% interest rate to anyone who invests in the cryptocurrency, DMD represents an investment opportunity for those who acquire it, either through purchasing or mining other digital currencies in trade. However, the value of any investment in DMD is of course totally dependent on the rising and falling value of the digital asset itself.
We have some misgivings about DMD as a cryptocurrency, based squarely on the strange, convoluted way that it’s made available to the public.
Nearly every digital coin worth its salt makes itself available to be mined directly by individuals interested in accruing the asset. However, DMD isn’t directly mineable – the DMD mining pool requires participating individuals to mine a different digital currency, remit it to the company, and then receive a commensurate amount of DMD in turn. In other words, the DMD Foundation controls access completely to new coins that aren’t being actively traded on an exchange.
This doesn’t sit well with us. Having centralized control of a cryptocurrency makes it too easy to manipulate its price and engage in pump-and-dump schemes, which is what we worry about when it comes to DMD. Promises of 25% interest rates on DMD held in digital wallets notwithstanding, it’s a bit of a red flag – an extra 25% in annual interest on a digital currency that’s worth nothing is still nothing.
This is somewhat mitigated by the fact that DMD isn’t proprietary – it’s traded on the open market – and that it has scarcity manufactured into it by capping the total number of tokens that will exist. However, we still don’t understand why DMD can’t simply be mined directly by independent miners instead of having it distributed in exchange for digital currencies that have been mined.
It seems like an unnecessary layer, one that occludes transparency, and provides too many opportunities for price manipulation by bad actors. If you’re interested in investing in DMD, keep these possibilities in mind and tread carefully so as not to expose yourself to undue risk.