Carats.io: Financial market for diamonds
Unlocking the world’s most exclusive industry powered by blockchain and machine learning technology
Avidar, who served until recently as managing director of the Israel Diamond Exchange and the Israel Diamond Institute, is currently vice president of CIBJO, The World Jewellery Confederation. In the past he held a number of top level positions with the Israel Foreign Ministry and served in several postings abroad. He was also president of the Israel-Africa Chamber of Commerce.
MBA from Recanati Business School at Tel Aviv University. Avishai is the team’s expert in all things management, ensuring that all aspects of the
Carats.io machine are running smoothly. Before diving into the diamond industry, he oversaw the sale of two of his previous companies. ClicksMob, his most recent venture prior to Carats.io, was named among Entrepreneur Magazine’s “Best Entrepreneurial Companies in America.” ClicksMob was sold to online performance marketing giant, XL Media in February 2017.
Chief Product Officer
BA in Economics and Management from The Technion, and an MBA from Tel Aviv University Over the last 10 years, Gaby has risen through the ranks of the executive finance world, ultimately managing a division with an annual turnover of 100M NIS (nearly 30M USD). Most recently, he’s leveraged his experience in profit modeling as a licensed investment consultant and mentor at Technion’s startup accelerator. Gaby is the team’s token-based economy expert.
Marketing & Business Development
Masters in Corporate and Business Law from Bar-Ilan University. During his days as a student and intern, Dor immersed himself in corporate management, finance, law, and international trade. He and his twin brother, Or, joined the startup world as eSports gamers before moving into the blockchain space.
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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)
Why does Carats.io keep diamonds in vaults?
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 500M – USD 500M 80%-51%
USD 500M – USD 10B 51%-20%
USD 10B and above 20%
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
Are CARAT Tokens ERC-20 compliant?
Yes. CARAT Tokens are ERC20 compliant and can therefore be kept in any Ethereum wallet that supports this protocol.
Am I allowed to participate?
While the CARAT TGE is open to the public, every country has its own rules, regulations, and laws when it comes to cryptocurrency. Individuals are responsible for understanding whether they can participate before purchasing CARAT Tokens.
Which payment methods will be accepted in the Token Sale?
Carats.io accepts Ethereum, USD, and Euro.
How will the CARAT Token be valued during the token sale?
During the token sale, CARAT Tokens will be valued at USD 1 per token.
What is the total number of tokens?
Since Carats.io is providing a whole new diamond standard monetary ecosystem, the number of CARAT Tokens is not capped and maintains a diamond reserve ratio according to its diamond standard reserve policy.
Why is there no maximum number of tokens?
We’re creating a low volatility token that will enable holders to trade and store value in a transparent, audited, and asset-backed ecosystem. Within the Carats.io environment, each and every token will be backed by a real-world asset — diamonds and cash equivalents.
To achieve this, a supply of tokens must remain unfixed.
You can get a sense of how supply and demand economics of a token work by looking at Bitcoin. Since it’s a fixed-supply currency, it’s unable to respond to fluctuations in demand without a corresponding fluctuation in the unit price. In other words, if demand for Bitcoin doubles and supply stays the same, the price of Bitcoin must increase and vice versa.
It’s because of this dynamic supply of CARAT Tokens (which is governed according to the rules detailed in our whitepaper) that we’re able to create a low-volatility token backed by a real asset.
How does Carats.io maintains the CARAT Token low volatility?
We measure volatility by looking at a currency’s standard deviation, or the amount that any one data point varies from the mean. In the stock market, we use the standard deviation to measure risk, with a wider range indicating greater risk. Overall, the standard deviation within the cryptomarket spans much wider than that within the fiat currency market, indicating tremendous volatility. This introduces significant risk into the cryptomarket — prices experience sharp and unforeseeable change, and a single second could cost coin holders hundreds of thousands of dollars.
However, if there’s one thing we can count on, it’s that diamonds won’t go out of fashion, and hence, their value holds steady.
Our proprietary formula uses our reserve of actual diamonds and their cash equivalents to calculate the theoretical value of the CARAT Token, linking the entire Carats.io economy to a stable, physical asset. By pegging the value of the CARAT Token to diamonds, we’re able to stabilize its price, creating a reliable, low volatility token.
How can I use CARAT Tokens after the token sale?
The diamond backed CARAT Tokens are in fact a digital form of holding real diamonds. As they are 100% redeemable, the CARAT provides the first kind of exposure to the diamond market, eliminating the need of holding the diamonds physically throughout the trading process.
Beyond being a sound use of capital, the CARAT token will also function as online and offline 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 online and even expose their crypto portfolio to a more reasonable, first of its kind exposure to the diamonds market.
Also, the CARAT may be used as a digital B2B payment method between members of the diamond industry themselves.
How can I redeem my CARAT Tokens?
What do I get when I redeem my CARAT Tokens?
Each token holder has, after completing Carats.io’s compliance process, the option of receiving real certified diamonds, mailed to the redeemer’s chosen address.