Bitcoin Forum

Al Kasir Jewellery Group from Dubai has launched three Crypto assets backed by certified diamonds. The new model uses “blockchain technology for the first time in the world”, according to a press release. The Al Kasir Group is owned by Ahmed Bin Obaid Al Maktoum and Dr. Amit Lakhanpal, an Indian entrepreneur who serves as the president of the company.

I am not interested in backed crypto, if i want backed asset i will buy it and store it myself, that way i dont have to trust my diamonds to third parties. It is against what crypto represents

Adding a source link, which is missing from the thread:

http://www.livebitcoinnews.com/al-kasir-group-plans-to-introduce-diamond-backed-crypto-assets/

It's going to be epic, because it's going to make it much easier and secure to deal with diamonds.
The biggest problem with asset backed currencies is that you need to rely on the source that he really backs up the currency with the asset.

What are these three crypto assets?
Did their company release a public statement on these yet and will they be available just as the bitcoin futures were from CME and CBOE?

Edited: Nevermind. Just read the article posted above my post while I was writing it
Al Falah, Al Mas, and Al Haqeek will trade on their own asset exchanges.

 These three crypto assets are backed by the International Gemological Institute (IGI) certified real diamonds accordingt to Dr. Amit Lakhanpal, Chief Executive Officer (CEO) of Al Kasir Group. I think these assets which are backed by assets are capable of serving the community better because of a better store of value. Diamonds are a great store of value and they are very precious as we know.

“We have a jewellery trading license. We have just adopted blockchain technology to improve our sales. We are not into cryptocurrency ...we have a private blockchain and whatever is issued by the blockchain will be taken back by the company and for that, we don’t need a central bank’s approval,” Lakhanpal said, responding to details on his company’s operating license. (Source: https://www.myjoyonline.com/technology/2018/april-17th/worlds-first-diamond-backed-crypto-assets-launched-in-dubai.php )
The above statement makes very clear the philosophy behind the launch of these assets. They have made the situation very profitable for them from both the ways.

The main feature of cryptocurrencies is that it is not supported by material values. If Dubai has created its own national cryptocurrency which has a measure of value, it is difficult to call it a cryptocurrency. This is a single case when the cryptocurrency is backed up by a real asset.Such initiatives indicate only that the cryptocurrency is growing interest in the implementation of new payment methods.

I see that makes the ownership of diamond and exchange of diamond easier for average people, but besides that I can't see any importance. It is risky as well like tether.

It's great they popularize cryptocurrencies this way, but I believe they got the whole idea wrong, because cryptos are not supposed to be backed up by anything. They should be volatile, free of any control, while diamonds will probably make the prices fixed. @renes is right it looks like a tether-like project which is of course also called cryptocurrencies, but are against the whole ideology of them and are actually merely instrumentally useful. Maybe it is also useful in terms of mass adoption, because people are not used to volatility and might not want to risk investing into something like a real crypto.

There is gold backed and silver backed tokens in the market but I don't think it is good to buy in ico, this is just tokenization of diamond. Is diamond good investment like gold  ::)

What difference does it make? Let's say the price of a coin is tied to the cost of one carat of a diamond. Then it will always be stable. This will not attract investors who use the strategy of the holding and will not be interesting for traders. Those who have a lot of money easier to buy diamonds. What is the meaning of such a coin?

Exactly, it will be like a regulation on the coin. Anyway, what benefit should it have on the coin? Is it only on security or will it help the coin's volatility? Or just the security and keeping the coin stable without increase.

That's exactly their selling point.
A less volatile crypto that is backed by "something" and can't experience drops and fluctuations like bitcoin does so it can be used easily in daily transactions without FOMO.
Look how many people are almost afraid to spend coins because by the next day they might double in value.

And to be honest, bitcoin was not from the start an investment or a toy for traders.

But this one is going to turn in a few years in a scam worth of a book and an award winning movie.


Actually dealing with diamonds is a real pain in the ass.
There is no real liquidity there and if indeed there would be the need to sell massive quantities there would be no market to absorb it in a small time frame.

But you did raise the most important question about this:
Why should we trust these guys and their claims about having those diamonds ?

Tether is denying audits after audits, this one will be no different.

Good initiative, because it's going to make it much easier and secure to deal with diamonds.

Let us just see their strategy if it will really work before jumping into a conclusion. They initiated a strategy and if this works I know many will follow. Or if it does not, atleast by their initiative others may be motivated to create their own strategy.

why do they even bother with creating a cryptocurrency or asset? the name doesn't matter they are using a technology that they don't need to be using and they are creating something (a token for example) that has no usages, is centralized, and doesn't provide people with anything. it is just a way of making some money by speculation! so why not just go to stocks market and sell the stocks of their company like a normal person?