(IDEX Online) - The Israel Diamond Exchange (IDE) will unveil new diamond-based cryptocurrencies created by startup CARATS.IO during the February 5-7 International Diamond Week in Israel (IDWI).
CARATS.IO will host a seminar introducing its new diamond-backed financial instruments to explain the benefits to the diamond industry, the IDE said.
According to Founder and CEO Avishai Shoushan, CARATS.IO's extensive ecosystem of products will elevate the entire diamond industry. CARATS.IO is creating two separate cryptocurrencies, each backed by diamonds purchased on the IDE.
One coin, called CUT (Carat Utility Token), will be used specifically in B2B transactions between eligible diamond traders. This currency will enable safe peer-to-peer transactions, altogether eliminating the need for financial intermediaries. The second currency, called CARAT, is meant for the wider market of financial institutions and digital currency investors. Both currencies will be backed by diamonds, with a market cap coverage of 25 percent, significantly reducing their speculative level of investment.
Shoushan said, "We're making a meaningful contribution to the diamond industry by simplifying transactions between diamantaires, eliminating financial intermediaries, and enabling diamond dealers to hedge themselves against price changes. Moreover, we're opening the diamond industry to a huge, largely untapped market of financial institutions and cryptocurrency investors."
IDE President Yoram Dvash said, "By cooperating with this innovative startup, we're making diamonds a viable investment channel for a whole new market. This is important for the diamond sector in Israel and the world over. Israel's high tech know-how is a huge resource for our industry and we're proud to play a pivotal role in heralding the next era of diamond trading."
Many hundreds of buyers from around the world will participate in IDWI 2018. This annual event has become a staple on the diamond world calendar because of the amount and variety of goods offered and the minimal costs. Participants will receive three complimentary nights at a local hotel.