When it comes to diamonds, technology and Lab-grown diamonds have been synonymous. A Japanese Lab Grown Diamond company has taken it a notch higher, killing many birds with one stone. Pure Diamonds Lab Co. Ltd., a production and R&D company and the first one in Japan to create Lab-grown diamonds (not to be confused with Pure Grown Diamonds) has collaborated with Pure Diamond Farm, Singapore to launch an ICO (Initial Coin Offering) with the aim of raising USD 200 Mn primarily to fund its CAPEX, using blockchain cryptocurrency technology.
Hideyuki Abe, the man behind Pure Diamond Lab and having previous experience of launching ICOs through his other businesses, is planning to manufacture Lab-grown diamonds in Japan, having zero impurities, including colored stones of Red, Blue and even ‘Rainbow’ colors.
Pure Diamond ICO is scheduled to launch on September 11, 2018 and will continue through November 15, 2018 in 2 phases, where the investors will be offered cryptocurrency – ‘Pure Diamond Coin’ (PDC).
The project has 2 phases: One, where investors can exchange PDC for Lab-grown diamonds, which the company will sell to Retailers and Jewelry brands. Second, when the company tries to establish “segmental functions” where the coins can be used for general expenses like buying train tickets.
Around 2/3rd of the proceeds of the USD 200 Mn ICO will be utilized for investments in Plant & Equipment, R&D (Research & Development) and IPR (Intellectual Property Rights). Instead of the traditional fundraising route, the company chose ICO mainly to gain speed and cut time of raising funds.
Pure Diamond Farms has teamed up with blockchain expert – Jun Kawasaki, the white hat hacker who solved high-profile NEM coins theft of Japan, and are confident that their blockchain will be robust and secure from thefts and hacks. The company decided to go for its own blockchain network, because other virtual currencies are tied to virtual assets, whereas Pure Diamond Coin will be backed by real assets. Hence, unless the value of diamonds decline, the value of tokens will not depreciate.
The blockchain project to be housed in Singapore – called ‘Pure Diamond Blockchain Project’ will be used to store and trace data of the company’s Lab-grown diamonds, including Origin, Certificate, date and time of creation and more, bringing full transparency and provenance.
Pure Diamond Coin will be used to connect tokens with Lab-grown diamonds manufactured, make transactions in the supply chain and can be distributed in the diamond market to make purchases. The company’s blockchain program ensures that authenticity of diamonds is verified and supply chain is cleared of impostors.
Besides, issues of ‘Blood Diamonds’ – conflict, labor and other issues, associated with Mined diamonds, also gets satisfactorily addressed with Lab-grown diamonds backed by blockchain.
However, Pure Diamond is not the only diamond company using blockchain. Rare Carat announced its partnership with Everledger for a blockchain enabled platform – Rare Carat Report. Few months back, Signet Jewellers also announced its JV with De Beers for a pilot blockchain platform – Tracr.
Hideyuki Abe said “Through the blockchain technology, we give every diamond a story… With nature-made diamonds, there is no story; you just know they just mined it from the mountain but you don’t know any other things about it.”