General Questions

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What is Carats.io all about?

At Carats.io, we’re building an ecosystem for the safe storage, transfer, and trade of value, using real, eternally valuable assets in diamonds that will benefit cryptocurrency and diamond industries alike.

Imagine a USD-backed token with the support of the US Federal Reserve. Carats.io is the real diamond-based version of that imaginary token. We’re working alongside one of the world’s leading diamond exchanges — the Israel Diamond Exchange (ISDE) — to commoditize diamonds and provide a less volatile, more transparent and completely reliable ecosystem within the world of crypto.

By commoditizing and tokenizing the diamond market, Carats.io allows token holders to store and transfer value in the real-world diamond market of the Israel Diamond Exchange without relying upon the hard-to-find expertise or excessive capital required to purchase individual diamonds. Rather, they can trade with a reliable, more stable, asset-backed CARAT Token. Plus, blockchain’s global ledger further detaches dealers and institutions from an inefficient and bureaucratic transfer of value, affording previously impossible forms of value exchange.

How is Carats.io related to the diamond industry?

First and foremost, we’re the first ones in the world to create a true off-bank market for commoditizing diamonds, which allows end-users to exchange tokens for real, certified diamonds. Carats.io is creating a whole new financial market for diamonds, based on the real-world diamond market, without relying upon the hard-to-find expertise or excessive capital required to purchase individual diamonds. Rather, people can trade with the more fungible, less volatile and asset-based CARAT Token. Furthermore, we have partnered with one of the largest diamond exchanges in the world — the Israel Diamond Exchange, which provides structure through compliance and diamond-specific expertise.

Who is the team behind Carats.io?

The Carats.io team is a tight-knit crew, with a proven team track record in tech, commodities, finance, and law. Every member of the Carats.io team is an entrepreneur at heart.

Now, Team Carats.io is putting their minds to bringing the diamond industry into the 21st century, while also bringing a less volatile, asset-backed token to the cryptocurrency ecosystem.

What Carats.io has achieved so far?

From the start, our aim has been to build a solidly rooted and firm ecosystem for CARAT Token holders. That’s why we began by securing deep, long-term relationships and partnerships with top-tier organizations. Carats.io’s alliance with the Israel Diamond Exchange allows us to put the diamond world in the next generation of crypto tokens — welcoming the masses to the rapidly evolving economies of crypto.

Additionally, relationships with a top-tier financial organization, such as our partners at Ernst & Young, help us integrate greater transparency into the Carats.io ecosystem, fostering a sense of trust throughout the community.

Last February, we launched our diamond pricing algorithm and the GDX Index and sub-indices — the official index and pricing algorithm of the Israel Diamond Exchange. The GDX reflects the Israeli diamond market just as DOW JONES reflects the US stock market.

You can take a look at the GDX launch event here and here.

GDX index and sub-indices breakdown:

Index Ticker

Breakdown

GDX General index. represents the most tradable diamonds on the market.
GDX-I Diamond Investment Index represents the best-graded diamonds on the market.
GDX-J Jewelry Diamond Index represents the most common diamonds in the jewelry market.
GDX-D “Dossier” Index represents the small diamonds in the market.
GDX 1+ 1+ diamond index represents the relatively large diamonds in the market.
Do you have a diamond industry-related business partners?

We have partnered with the Israel Diamond Exchange (ISDE), one of the largest diamond exchanges in the world, the largest exporter of polished diamonds, as well as a hub for 3,000 diamond exchange members and 20,000 diamond dealers. We’re leveraging their infrastructure, expertise and compliance in various ways, the first of which is index linkage.

Where can I read the Carats.io white paper?

Just click here to download our full white paper.

Why does Carats.io keep diamonds in vaults?

The real diamonds behind Carats.io are used as a reserve, creating a diamond standard for our token. These precious stones provide both liquidity and a means to store and transfer value for all token holders by infusing the CARAT Token with the intrinsic value of diamonds.

Where do the diamonds come from?

We purchase GIA (Gemological Institute of America) certified diamonds from authorized diamond dealers.

See the Israel Diamond Exchange’s statement below:

“As part of the ISDE’s continued efforts to provide its members with the most advanced technology and up-to-date trading tools, we are proud to collaborate with Carats.io to create the Carats.io environment. All diamonds located in Carats.io’s vault will be purchased from authorized dealers and will be certified by GIA (Gemological Institute of America).”

Where do you store the diamonds?

CARAT Tokens are covered by the diamonds stored in the Israel Diamond Exchange’s vault. As such, the vault will be audited regularly.

Who is auditing the value of the vault?

Ernst & Young Accounting Firm will perform an independent audit of the deposit system and the Carats.io Vault, verifying the Carats.io Vault’s value on a regular basis. That will provide the transparency that is so important to our token holders.

What is the ratio of the backup of diamonds and cash to the Carats.io token?

CARAT Tokens will be redeemable for diamonds and cash equivalents. Carats.io maintains a reserve of diamonds and cash equivalents valued at least 50 percent of the value of all tokens. Over time, that coverage ratio could rise according to the following table:

Market Cap Reserve Ratio
Up to USD 100M 50%
USD 100M – USD 500M 50% - 70%
USD 500M – USD 1B 70% - 76.67%
USD 3B – USD 10B 85.56% - 92.17%
USD 10B and above 92.17% - 97%

**Subjected to market conditions, regulation, and company overhead.

Why is Carats.io using the blockchain and how do we interact with it?

By applying blockchain technology based on the revolutionary DPA and the GDX, Carats.io, creates a state-of-the-art system to tokenize the diamond industry.

Tokenizing diamonds allows us to sidestep the inherent individuality of each diamond, thus breaking down the homogeneity barrier. It acts as a type of ‘second-stage processing,’ converting the value assigned to a physical diamonds into a generic, divisible, diamond-backed token. Not only can these digital tokens be effortlessly transferred upon contract fulfillment, but they also eliminate the traditional geographic or temporal limitations of the diamond industry.

Our token-diamond conversion system makes the CARAT Token a new, first-of-its-kind digital asset.

What’s next for Carats.io?

We’ve got a lot coming up. In a few weeks, we’ll hold an exclusive pre-sale, open only to accredited investors. That will be followed by our Token Generation Event, where anyone can purchase CARAT Tokens. At the same time, Carats.io will act to achieve our goal — setting a new, diamond standard monetary ecosystem.

What is the minimum amount to participate?

Accredited Investor pre-sale — USD 20,000
Crowd Pre Sale / Early Bird — USD 1000
Crowdsale — USD 100

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