CEDEX - First Certified Blockchain Based Diamond Exchange

What is CEDEX ?

CEDEX.com is a global exchange that focuses on bridging the gap between the traditional diamond industry and the innovative financial markets. With its extensive industry knowledge, CEDEX wants to engineer a ground-breaking change – enabling people to liquidate and invest in diamonds like any other financial asset, in a transparent and secure way.

The CEDEX exchange enables anyone to invest in individual diamonds, shares of a high-value stone or shares in a basket of diamonds (ETF). Investors, buyers and sellers have full confidense because the diamond value is transparent, using the DEX, our machine learning algorithm and blockchain technology that rates a diamond’s asking price; liquid because it creates a two-sided market by enhancing both the supply and demand, and standardization because CEDEX creates a unique benchmark value, rate and contract for every stone.

The CEDEX Solusion

The ultimate objective of the global web site cedex.com is to bridge the gap between the traditional diamond industry and the innovative financial markets. The platform envisions bringing together diamond holders who want to liquidate their holdings and investors looking to diversify or hedge their investment portfolio to include diamonds as an investment asset and doing so in a secure and transparent way

CEDEX is built on four pillars: The DEX proprietary technology, blockchain technology, diamond tokenization and the CEDEX Coin.

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1. presents the way the DEX establishes transparency and standardization in diamond trading. 

2. discusses the tokenization of diamonds. 

3. maps the CEDEX solution in the domain of blockchain-based exchanges. Finally.

4. outlines the CEDEX Coin.

1. TRANSPARENCY AND STANDARDIZATION: THE DEX

The DEX, CEDEX’s proprietary machine-learning algorithm, addresses the most significant obstacles in transferring diamonds into an asset class, i.e. lack of transparency and coherence in diamond value appraisal. The DEX takes gemological data, diamond financial indexes data and global inventory data into consideration. Utilizing the global diamond inventory data, the DEX quantifies diamond prices and ranks individual diamonds and their respective prices.

The DEX comprises three elements. The first is the gem composite, expressed in percentage terms and representing a diamond’s gemological perfection. The second DEX element is the parallel composite indicating the rarity of a diamond category as well as the available quantity of diamonds in the relevant category. The third DEX element is the indices composite, giving investors market directions for the diamond industry

2. DIAMOND TOKENIZATION

A private diamond holder or dealer wishing to liquidate his or her holdings will use the simple CEDEX tokenization onboarding process to create a smart contract. This contract represents the financial offering, including the sale of a single diamond, a shared investment on a high value diamond or a diamond basket sold to multiple investors (Diamond ETF).

Once the request is executed, the diamonds are delivered to the custodian and validated against their GIA certificate. Following approval, the Diamond-Token is created and sent to the owner’s digital wallet. The diamond remains at the custodian for safe keeping and the Diamond-Token holder has the option to either list the Diamond-Token on the CEDEX

Exchange or to sell directly peer-to-peer.

To ensure trust and reliability, the CEDEX Exchange only allows its users to purchase GIA-certified diamonds. GIA certificates are issued following grading by the Gemological Institute of America (GIA). 

3. BLOCKCHAIN TECHNOLOGY

The CEDEX project uses blockchain technology to tokenize diamonds. In the first phase, Diamond-Tokens are issued via a simple process initiated once a diamond holder lists a stone for trading. The simple interface creates a smart contract that represents the diamond's gemological data and additional information to allow the creation of a financial

product that represents the underlying asset, i.e. diamonds. As the blockchain-based CEDEX ecosystem evolves, we anticipate the diamond ecosystem will adopt Diamond-Tokens as the new means of trading diamonds.

4. THE CEDEX COIN

The CEDEX Coin is implemented as an ERC20-compatible Token over the public Ethereum blockchain. Activity on cedex.com, and later on within the diamond ecosystem, is performed solely using CEDEX Coin. This will make the Token an integral part of the CEDEX platform and the driver of its economy.

CEDEX Coin holders can use their Tokens once the sale is completed Tokens are allocated for the following services:

- Certify diamonds in gemological labs. Once certified, the company, using the DEX, will assess the market value of the diamond, using the DEX, and will notify the diamond holder about its recommended value 

- Secure, insured transportation services for the diamond

- Insurance services 

- Custodian services 

- Allowing the diamond holder to keep assets at the custodian

THE CEDEX PLATFORM

The CEDEX platform gives investors a clear view of possible financial offerings without the need for extensive knowledge about diamonds.

The trading platform screenshots below illustrate the methodology that enables investors to choose either an investment range or an investment category. The DEX displays diamonds, listed in sequence by “best-value investment” from top to bottom.

The DEX rating range is represented numerically in values from 0.599 to 0.999 with the higher rating representing the most valuable investment (based on the DEX algorithm as described in Chapter 3.1).

In addition, the system provides investors with financial and gemological data, allowing them to gauge the investment potential in parallel to the DEX recommendation.

Website : https://cedex.com/

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