- What DIAMCO project is about?
- DIAMCO is created on the edge of diamond, finance, blockchain and cryptocurrency industries.
- DIAMCO Platform consists of online and offline infrastructure aimed at providing innovative, secure and convenient way of managing investment portfolio based on diamonds. Online part of DIAMCO Platform is based on blockchain technology and uses Ethereum smart contracts in its core operations. Offline part provides logistics, storage, distribution of the diamonds.
- DIAMCO solves many problems in diamond industry turning diamonds into commodity introducing stable coin AL’COIN backed by diamonds.
2. Why do you hide your WP from the general public?
- WP is open for access after registration on the website. At this point, we are at the stage of closed private round without doing an extensive marketing campaign. We communicate directly with funds and investors and collect applications for participation. To do this, we made access to the documents after submitting the email.
- Another important point is compliance in terms of marketing investment products. A person should firstly show interest and ask for investment materials, rather than we “freely” impose it on him.
3. What is the physical meaning of attaching a token to a materialized good?
- Launching a token that has an understandable value support — the so-called “intrinsic value”. For large funds and investors, there should be an opportunity for fundamental provision of those financial instruments that are traded, and moreover the possibility of “exiting” these tools into something that is guaranteed tangible and valuable. In general, the topic of Asset Backed and Security Tokens is now a new trend, as the investment world became disappointed in the usual tokens with utilitarian functions.
- Key functions of token with physical backing in DIAMCO:
- Financial instrument for investing in diamonds by analogy with oil and precious metals markets (Brent and ETF)
- Acquisition of diamonds of specified quality with reduced risks in the purchasing process, as in the core of the procedure is a smart contract and a reserve fund to protect against default by the parties.
If the asset price is stable, the price of the token will also stable. Stable coins are the most important element for the crypto industry. At the moment there is no reliable stable coin with a transparent issue and a confirmed periodic audit. But DIAMCO has a way to make it happen.
4. Where is the geographic area of the diamond mining?
- We do not deal with the mining of diamonds.
- We buy cut diamonds with specific characteristics from the market from trusted suppliers from all over the world. We have access to a closed auction b2b trade through our general partner — MaximiliaN London Jewelry
5. What are the reserves of diamonds?
- What reserves are we talking about? Once again: we are not a mining company.
- The diamond tokens are issued after purchase of diamonds on the market and arrival to an independent store
- Diamonds will be stored in custody storage operated by independent administrator
6. Who owns diamond reserves?
- What exactly does it mean? I would like to clarify that we are not engaged in mining diamonds. We buy already cut certified diamonds from dealers and suppliers.
- Diamonds in DIAMCO ecosystem belong to AL’COIN token holders. No one can take a diamond out of DIAMCO system without redeeming AL’COIN first.
7. Who has been in the diamond industry for more than 20 years?
- Maxim Artsinovich — the founder and owner of the jewelry house MaximiliaN London with offices in New York, Dubai, London, Moscow, Monaco — has more than 20 years in diamond industry
- Den Artsinovich — DIAMCO CEO — also the CEO of the project Maximilian Silver, with a huge experience before in financial industry, having worked for many years at Renaissance Capital, which proved to be extremely relevant for our project.
8. How does the project solve the problem of tax efficiency in the industry (according to WP)?
- When using a token, there is no subject of additional taxation in the form of duties and VAT, since there is no crossing of borders in comparison with physical assets.
- Placement of diamond issuing points in duty-free zones
9. For what project advisers are planned to receive $ 4 million? Are they magicians or wizards?
- This information is incorrect, nobody gets 4 mln. $. Our working conditions with the board of directors of the project are extremely simple and transparent. First of all, they earn by attracting investments in the form of commissions from attraction. The WP also says that they claim 4% of the total distribution of tokens in the form of investments, i.e. This is not the pool that we give them, but a pool that can be redeemed by them. Our board of directors, like the team, if they want to get a DIAM token — must put their own funds into the project, buying a token on the special conditions, but definitely not getting them for free or for their services. This is also written in detail in the WP. In my opinion, we have selected the most magical advisers, and I am sure that magic will happen.
10. What is the problem of transparency of pricing in the diamond market?
- Diamond market is accessible only for professional players
- All trade — on b2b sites in the form of auctions. Even those sites that call themselves exchanges are not exchanges, in fact. Diamond price quotes are a bulletin board in the form of a list of offers from diamond dealers and distributors. This does not reflect the market situation. As a consequence — the concept of benchmark or market price — generally absent in the diamond industry.
- The absence of a secondary market complicates the sale of previously purchased diamonds, as pawn shops buy at a reduced price, up to 70% of retail.
- DIAMCO solves the issue of pricing by introducing DIAMCO Standard and issuing a token, the price for which is always transparent.
11. What is the principle of the diamond auction in the project?
- It is a format for collecting applications, based on a multi-signature smart contract of Ethereum.
- The use of smart contracts guarantees the transparency of the process and the implementation of the algorithm according to the specified scenario.
- DIAMCO smart contract of the auction is also responsible for issuing the diamond tokens after the delivery of the diamonds and the final signature by the independent administrator.
- The auction is necessary since the final price for the purchase of diamonds is unknown. Participants make bids at the auction, indicating the maximum price for which they are ready to purchase a diamond. If the final price of the token after the purchase of diamonds is higher than the participant’s bid, then number of tokens credited will be non-integer if the user indicated an agreement to receive a non-integer number (part of a token). If the price is lower, the remainder of the crypto currency is returned to the buyer.
12. Why is it possible to transfer the reserve fund to Fiat after reaching $ 5 million?
- In order to exclude dependence on the volatility of the internal DIAM token.
- Initially, the fund will be based on the internal token of the DIAM platform.
- Transferring the reserve fund to Fiat — increases the stability of the system, as calculations for the supply of diamonds occur in dollars.
13. Where do the $ 10.5 million go for marketing? Details?
- Promotion of monthly auctions for the sale of diamonds: outdoor advertising, context and online traffic (CPM, CPC, CPA), PR and media publications, sponsoring events, partnerships, referral program.
- The development of DIAMCO Platform includes marketing of the following functionality: Basic Functionality, Full crypto block, Duty Free Presence, Internal Marketplace, Diamond Vending Machines (DVM), Jewellery & Watches block, Infrastructure for accepting AL’COINs as legal tender at Dubai Duty Free.
- That is, in fact, such a campaign, if we created a classical instrument, would have cost hundreds of millions of dollars. In view of the “heated” of blockchain and cryptocurrency markets, it will be much easier for us to convey information to investors about diamond tokens about what we are, and why it is convenient — they already understand it.
14. Why are duty-free zones ready to use your project?
- For them, this is just a commercial issue: we pay money, they give us their services. In general, the history of duty-free trade in the luxury segment is quite developed.
15. What is the basis for forecasting revenues (or expenses) to $ 51 million with a basic option of $ 7 million?
- Commission platform is 5%
- To launch the auction on the platform, the initiator is required to pay a commission of 5%. At the start of the auction for $ 5 million — the fee is $ 250 thousand. The revenue forecast is based on the success of the auctions
16. Why is the rate made specifically for the UAE market (participation in Dubai Expo 2020, duty-free, etc.)?
- The UAE market likes “luxury” things in general, plus our general partner MaximiliaN has “solid” position in this region, which makes it easier and cheaper for us to launch in this region together with a future partner DMCC
17. Is the market covered only by faceted diamonds or all?
- Used only natural cut diamonds (diamonds) of specified quality, certified by the GIA
