General Questions

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What is Carats.io all about?

The evolution of the world economy has been nearly identical for each commodity. Hundreds of years of hand-to-hand trading in the actual, physical merchandise eventually gives way to more sophisticated financial markets built atop them. This upgrade allows markets to be expand while remaining more secure. Alone amongst all the other physical commodities, only the diamond market has never taken this next (and necessary) step and without commoditization, the diamond trade will remain flawed unrefined and closed.Without commoditization, the diamond trade has remained flawed, unrefined and closed.

However, the much-needed transformation is taking place now.
Using the latest technological developments, Carats.io has created a state-of-the-art algorithm that has standardized price evaluation of the precious stones, and compares individual diamond grade to daily market conditions. This standardizes and automates a primitive market - allowing Carats.io to unlock the world’s first financial market for diamonds.

By commoditizing the diamond market, Carats.io has made the commodity accessible to all users who no longer need to rely on hard-to-find expertise. Investors can purchase CARAT tokens, diamond-backed digital currency, which can be redeemed in the real-world diamond market. By being linked to a physical commodity averaging an appreciation of 5-6% annually, the CARAT token remains one of the most stable and promising assets.

Beyond being a sound use of capital, the CARAT token will also function as a means of payment that will help kick-start the diamond and jewelry industries in two ways: by allowing members of the crypto world to purchase diamonds and jewellery, and as a B2B payment method between members of the diamond industry themselves.

Carats.io melds hi-tech, a strong base within the crypto community and strategic partnerships in the diamond industry to sit in the driver’s seat of an exciting ecosystem bringing millions of people to the convergence of the crypto and diamond markets.

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.

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 an 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 worked with the Israel Diamond Exchange to train the Diamond Pricing Algorithm, providing the basis for the synthesis of the diamond industry with next generation of crypto tokens. — welcoming the masses to the rapidly evolving economies of crypto.

Additionally, relationships with a top-tier financial organizations, 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 DFX Index and sub-indices. The DFX has already been accepted by a significant portion of the diamond sector as an accredited evaluation (and is even published on Investing.com)

DFX index and sub-indices breakdown:

Index Ticker

Breakdown

DFX General index. represents the most tradable diamonds on the market.
DFX-I Diamond Investment Index represents the best-graded diamonds on the market.
DFX-J Jewelry Diamond Index represents the most common diamonds in the jewelry market.
DFX-D “Dossier” Index represents the small diamonds in the market.
DFX 1+ 1+ diamond index represents the relatively large diamonds in the market.

 

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.

Where do you store the diamonds?

CARAT Tokens are covered by the diamonds stored in the our private reserves. 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?

Carats.io maintains its diamond reserve as shown in the following table:

CARAT Token Supply Diamond Reserve Ratio
Up to USD 50M 100%
USD 50M – USD 500M 80%-51%
USD 500M – USD 10B 51%-20%
USD 10B and above 20%

**Subjected to market conditions, regulation, and company overhead. Carats.io may enhance the diamonds reserve from time to time on regular basis.

 

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 DFX, 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 diamond industry.

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

What is the minimum amount to participate?

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