Digital currencies have allowed investors to access a new asset class that is rapidly increasing in value. One interesting aspect of the cryptocurrency and blockchain industry is the development of smart contract, which have made it possible for investors to purchase digital certificates that are backed by real world commodities.
To date, this practice has been used to create a new digital commodities market, but a new initial coin offering is planning on using digital assets to regulate the price of a new cryptocurrency. Dimnd is a new cryptocurrency that is powered by the Ethereum network, backed up by the value of real diamonds.
In this article, we’ll take a look at the Dimnd project and find out what it plans to achieve. We’ll also examine the Dimnd initial coin offering and find out what it provides to help you determine whether it’s worth getting involved in.
What Is Dimnd?
The Dimnd platform is essentially a blockchain-based diamond investment. Each Dimnd token represents a specific value in carats of diamonds, which are stored in secure vaults to back the value of the Dimnd cryptocurrency.
The Dimnd platform will also offer investment portfolio diversification, and will make it possible for users to exchange Dimnd tokens for real, physical diamonds. According to the Dimnd website, physical diamond prices increase by 4% to 6% every year, which offers investors a stable ROI.
The Dimnd platform is subject to a limited yearly supply and is restricted by exclusive buying rights, which- according to Dimnd will cause tokens to increase in value. The Dimnd network operates on the Ethereum blockchain, and is intended to reduce the volatility risks associated with both traditional fiat currencies and cryptocurrencies.
The Dimnd ICO
The Dimnd pre-ICO is currently underway, and is making 20,000 Dimnd tokens available worth 20 carats each. The price of each Dimnd token is set at 0.025 ETH, and the pre-ICO has a minimum investment of 1 ETH. The pre-ICO will conclude on the 10th of December 2017, or when the hard cap is reached.
During the Dimnd ICO, 2,000,000 Dimnd tokens will be released. 100,000 of these tokens will be allocated to Dimnd partners and developers. The remaining tokens will be available for purchase during the initial coin offering.
The Dimnd ICO is scheduled to launch in the beginning of January 2018, and will offer Dimnd tokens at a price of 0.03 ETH each. According to Dimnd, the expected value of Dimnd tokens is expected to reach 0.035 ETH after launch.
While Dimnd appears to be an interesting investment prospect, it’s important to assess whether the market has room for yet another cryptocurrency that doesn’t deliver any unique functionality or technology.
While it’s true that Dimnd is backed up by real diamonds, it’s important to remember that the value of diamonds is wholly artificial, and is generally controlled by the incumbent financial institutions that blockchain technology works to disrupt.
Apart from this fact, it’s relatively safe to assume that Dimnd tokens should retain their value, given that the diamond market is extremely tightly regulated.