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World's First Diamond-Backed Cryptocurrency to Launch Jan. 18

Jan 11, 2016 7:07 AM   By Rapaport News
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RAPAPORT... The companies behind the world’s first diamond-backed cryptocurrency will start selling the digital coinage this month. The asset class used is colored diamonds, which the founders of the PinkCoin claim have not lost value since tracking began in 1959.

Precious Investments and its subsidiary BitGem Asset Management (BAM) will launch the PinkCoin crowdsale – a crowdfunding process in which investors acquire PinkCoin tokens – on January 18, according to a statement January 4.

PinkCoin is based on the Ethereum cryptocurrency platform and backed by a pool of fixed colored-diamond assets kept in trust by BAM. All escrowed diamonds have been independently appraised and certified and are insured by Lloyds of London, the statement said.

The initial crowdsale will comprise 5 million PinkCoin tokens and the initial diamond asset pool has been valued at $5 million, meaning each token will be worth $1 to begin with. The diamond pool will be valued on a regular basis.

PinkCoins are redeemable for Bitcoins, a digital currency introduced in 2009, or individual gems, based on the diamond pool’s most current valuation. Holders of the currency will be able to trade it for other assets and for asset pool-backed tokens on the BitGem Decentralized Marketplace, anticipated to be available in the second quarter of 2016.

“Pink and other fancy grade colored diamonds are the only asset class that have consistently increased in value well over 10 percent per year,” said Dr. Nataliya Hearn, chief executive officer of Precious Investments. “They are the only commodity that has not decreased in price since they began being tracked in 1959. This will only enhance the validity of PinkCoins in the marketplace.”

Pink diamonds surged 315 percent over the decade to June 30, 2015, blue diamonds soared 154 percent and yellow diamonds jumped 50 percent, according to a report by Knight Frank released last year which sourced data from the Fancy Color Research Foundation.
Tags: BitGem Asset Management, cryptocurrency, PinkCoin, Precious Investments, Rapaport News
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