Diamonds, the global natural diamond market has developed rapidly since its discovery, however in recent years the diamond industry has been inhibited by conflicts, environmental and ethical issues. Moreover there is a decreasing volume of diamonds successfully mined each year as diamond deposits are running scarce. In a market that is currently worth approximately $83 billion USD,1 a solution much be reached in order to resolve these ongoing issues surrounding the market.
Pure Diamond Farm has succeeded in producing a lab-grown diamond that exhibits identical physical, chemical and optical properties as natural diamonds. The Pure Diamond project aspires to usher in the new era of diamonds, making steps to ensure the continued sustainable existence of these incredible gemstones.
The Pure Diamond Project refers to the Singaporean based Pure Diamond Farm, the Japanese based Pure Diamond Lab, the blockchain network and the cryptocurrency Pure Diamond Coin. All of which play an instrumental role in the production and distribution of lab-grown diamonds across the globe.
In recent years, the world’s leading company in the diamond producer market, Diamond Foundry had received a boost in equity investment from Hollywood A-lister Leonardo Dicaprio2 and diamond industry giant De Beers Group have also established a new company ‘Lightbox Jewelry’ entering into the cultivated diamond market. However there have been no endeavours made yet in Japan, Pure Diamond Farm will be the first foray as a Japanese lab-grown diamond manufacturing and research facility operation.
Our cultivating technology makes it possible to grow diamonds that are exhibit extremely rare colours such as red or blue, we are also pioneering rainbow-coloured variants that do not exist naturally.
Similarly in the flower industry, blue and rainbow roses, which do not exist naturally have developed their own markets and are becoming increasing popular as ‘high-end’ flowers. With lab-grown diamonds we aim to build a new market created by human ingenuity and research. This technology is similar to biotechnology, which is used in synthesising a natural substance and it can be referred to as cultivating or farming like pearls.
At its full capacity, each of plants can produce up to 200 pieces of one carat ore per month, this number is doubled each time the carat weight is halved, i.e. 400 pieces of half carat ore per month etc. If properly maintained, our laboratories can be used for over 30 years.
Simultaneously alongside Pure Diamond’s lab-grown diamonds our project we will also be releasing an original blockchain network named the Pure Diamond Network. An encrypted peer-to-peer system that stores all information regarding the lab-grown diamond on a non-falsifiable network, creating a useful digital portfolio for both retailers and end-consumers. The network is aimed at enhancing consumer experiences and revolutionise the traditional retail service as consumers will be provided with information such as the birth date, colour, cut, clarity and carat weight of the lab-grown diamond.
The Pure Diamond Coin (PDC) is the token based on the Pure Diamond Network, it creates a token economy allowing participants and token holders to purchase lab-grown diamond on the Pure Diamond Network and can be used for settlement, with market prices determined by secondary markets.
The effectiveness and potential of this approach comes into play when realising that both lab-grown diamonds and PDC can be exchanged and traded in their own individual markets. There exists an upper limit to the number of PDCs in circulation as explained later in this document, this limit means that as the demand for PDCs increases the value for PDC will increase as well as it is a finite resource.
PDC is the exclusive token used for buying and exchanging lab-grown diamonds, due to the token being associated with a real-asset collateral i.e. lab-grown diamonds, it would also mean that it is less likely to be susceptible to price fluctuations.
The global demand for natural diamond jewellery market is valued at approximately $83 billion USD in 2018 and has reigned the top of the jewellery industry in both market value and social positions for thousands of years. Currently, in Japan the demand for natural diamond jewellery is estimated to be around $4 billion USD making it the third largest market in the world for diamonds.
A lab-grown diamond market does exist on the world stage, predominantly in the United States, with an estimated global market size of $1.5 million USD which is minuscule compared to the natural diamond market. It is in this window of opportunity that we see potential for growth and development of this market, the chance to push lab-grown diamonds to the forefront of diamond jewellery markets worldwide and establish a strong market dominance in the process.
Chartered Financial Analyst (CFA) Mr. Neri Tollardo for Morgan Stanley had published an article4 in which he expresses that “The hot topic within the diamond industry right now revolves around labgrown diamonds”. He believes that the technology behind lab-grown diamonds have now matured to the stage where it could potentially threaten the natural diamond trade, and goes on to elaborate explaining that “The most likely scenario is that the lab-grown diamond market finds its own niche, increasing the diamond jewellery market and taking limited market share from miners”.
Lab-grown diamonds as we will soon explore are not only optically superior to their natural counterparts but also resolve a multitude of different environmental issues surrounding them. The market trend predicts that younger consumers who are more open to alternatives and are willing to pay a premium for products to have a low environmental impact and/or are socially responsible. As such lab-grown diamonds are more commercially viable as they are less expensive and conflict-free, we believe they will appeal to younger more socially conscious consumers with disruptive impacts for the natural diamond market. It is estimated that by 2020 that the U.S. lab-grown diamond market expand up to five times the share in sales of diamond jewellery, considering other countries such as Japan and other countries will soon follow, further market expansion is to be expected. This is one of the fundamental reasons as to why Pure Diamond Farm is positioning itself to be at the helm of this expansion.
Lab-grown diamonds have historically been used for industrial use as previous technologies allowed for the cultivation of ‘gem-stone’ quality diamonds. Currently the focus our project is to use our innovative technology to cultivate diamonds for jewellery use. The global market valuation in 2016 for lab-grown diamonds is estimated to be around $1.5 million USD, but by the year 2022 the estimate will be an astronomical $1.05 billion USD, which marks significant progress for this potential market.
The growth of the lab-grown diamonds market is due to the fact that major companies such as Swarovski have also announced that they too will be launching a new brand incorporating lab-grown diamond related products stating that “lab-grown diamonds contribute to the well-being of the planet”. Nadja Swarovski further elaborates this point as “created diamonds” as she calls them, are aligned with the priorities of today’s consumers.
Moreover, recently the industry giant De Beers Group had announced that they would launch their own synthetic diamond brand named Lightbox Jewelry. This not only signifies that De Beers Group has recognised the value of lab-grown diamonds but also reflects the significant impact that lab-grown diamonds will soon have on the global market.
As Martin Roscheisen of Diamond Foundry explains, “Lab-grown diamonds are now officially mainstream. Everyone’s jumping on the category”.9 This couldn’t be more true especially in the position of the Pure Diamond Project, however, by combining blockchain technology and virtual currency trading it guarantees the Pure Diamond project a significant advantage over its competitors.
Lab-grown diamonds are genuine diamonds that are grown in controlled laboratories that exhibit identical physical, chemical and optical properties as natural diamonds. They are not ‘imitation stones’ or ‘diamond stimulants’ nor are they substitute diamonds such as cubic zirconia, moissanite, or crystals. This is due to the fact that ‘diamonds’ have a chemical makeup of pure carbon atoms, as lab-grown diamonds are cultivated from 100% pure carbon. Essentially, the only notable difference between lab-grown and natural diamonds is the environment in which they were formed.
Scientists and diamond research institutes around the world have invested a lot of time into conducting strict tests and research on lab-grown diamonds and have validated their characteristics. All physical, chemical and optical evaluations as well as research results prove that lab-grown diamonds generated are virtually the identical as their natural counterparts.
A lab-grown diamond does not abide by terms like synthetic, man-made, or fake. It is the same as a naturally formed diamond structurally and chemically and therefore, it is a “real diamond produced by the latest technology”, possessing the same natural mineral content.
Unique Features of Pure Diamond Project’s Lab-Grown Diamonds
The natural diamond industry has always been a victim of unsustainable and unethical mining issues. There are countries that are facing emission issues and harmful impacts to water sources as the trend of diamond output is showing signs of decrease. Asides from emission and supply problems, in most cases large holes are left into the geography of the landscape as mining for diamonds requires large excavations sites to be erected. These holes are left unfilled afterwards as corporations do not see any financial benefit in doing so, thus the landscape and the environment is often left in a ruined state.
With lab-grown diamonds, it solves the issues of emissions and sustainability by producing a consistent output with lower energy consumption and it protects the landscape because it does not actually require excavating.
Conflict and Labour Issues Resolved
In developing countries, diamonds are mined during a time of conflict, and it floods the natural diamond industry with ‘blood diamonds’. ‘Blood Diamonds’ are used to procure wealth to fund the ongoing conflicts in warring countries. Often miners which include women and children are forced to mine under extremely dangerous circumstances in mines.
Lab-grown diamonds are cultivated inside a controlled facility, and therefore nullify the need for physical mining. In the long-run when adopted globally, an optimistic perspective can be attained where the Pure Diamond Network will mitigate the demand and distribution of ‘blood diamonds’ in its entirety, resolving many conflict and labour issues in the process.
Whilst there are many companies currently established in the market they are all missing one gamechanging factor that will set the Pure Diamond project apart from the rest of its competitors. The Pure Diamond Network utilises blockchain technology to build a ‘digital portfolio’ that is used to imbue Pure Diamond’s products with unique traits and data, enhancing end-consumer and retail experiences.
The Pure Diamond Network (PDN) uses blockchain technology and implements an encrypted peer-to-peer system. Therefore the PDN does not depend on central control management and functions on a decentralised network, this ensures that all digital information stored on the PDN is communicated equitably and distributes non-falsifiable information.
Moreover, we have taken steps to employ technology from the diamond industry leading-tech companies in Israel, coordinating with Sarine Diamond Technologies to install an AI assessment system into the Network. AI assessment technology alongside automated lab-grown evaluation systems help provide digital assessment data to consumers.
We then plan to simultaneously develop applications that enable verification of Pure Diamond’s labgrown diamonds and assets. With this applications, consumers can easily verify and confirm the value of the diamonds anywhere.
The Pure Diamond Network (PDN) was originally built on the Ethereum network platform to be implemented as a decentralised application. However, processing the transactions to the specifications of Ethereum would incur fees and raises scalability issues. In order to minimise transaction costs on the PDN and to promote the Pure Diamond market where anyone can easily distribute its assets, we had to develop a solution. Therefore we are currently in the process of developing an original blockchain to resolve these issues.
The Pure Diamond Blockchain will be used to store useful information such as the birthdate of the diamond, colour, clarity, cut, carat weight, where it was cultivated, when it was cut and polished from its rough form etc. In doing so it creates a digital profile, which promotes traceability and transparency across all stages in the manufacturing pipeline of the diamond.
When consumers sell back their diamonds after purchasing, they are often sold at a considerably lower price, this is because regular consumers are not aware of various qualities and elements of the diamonds. Consumers will “not be able to recover some financial benefit if they need to sell it” explains Jeffrey D. Feero, although this perception may apply to other lab-grown diamond brands, it does not apply to the Pure Diamond project.
Giving Every Diamond A Story
The blockchain information stored above not only promotes transparency and protects the consumer, but also enhances the end-consumer experience as a whole. Little is known about where the diamond comes from, where it has been when it was excavated. The Pure Diamond Blockchain stores informative data and presents them in a coherent and accessible manner to consumers, giving every diamond a story. Perhaps the next time consumers purchase lab-grown diamonds, they can select ones with the same birthday as themselves, the same horoscope or just a lucky number!
The team developing the Pure Diamond Network (PDN) is actively researching new blockchain technologies in development across the world and implementing the most appropriate technologies into our own PDN. We aim to build our own infrastructure that updates and improves constantly, and by developing an original blockchain, it becomes possible to build an original recognition algorithm, which enables us to calculate an actual physical amount of Pure Diamond products in circulation and assigning revenue according to the number of cultivated lab-grown diamonds.
With the concept of both lab-grown diamonds and the blockchain firmly established, the Pure Diamond Coin is what links the product and the user, bridging the virtual and physical assets of the Pure Diamond project together.
The Pure Diamond Coin (PDC) is a cryptographic token that operates on the Pure Diamond Network, creating a token economy for holders who wish to purchase lab-grown diamonds with market prices decided by secondary markets. This allows both lab-grown diamonds and PDC to be exchanged and traded in their own separate markets respectively.
The valuation of the PDC is issued in concurrence with the demand and value for lab-grown diamonds, which in turn ensures relative price stability of the token, in essence making PDC less susceptible to large price fluctuations. Moreover the transparency of the transactions are also ensured due to the use of the Pure Diamond Network, minimising risks such as purchasing fakes, enhancing security for token holders. Additionally, every diamond cultivated by the Pure Diamond Lab is individually inscribed, with PDCs generated on the Pure Diamond Network.
In the future, PDCs will not only be used solely on exchanging lab-grown diamonds, we are currently developing opportunities to allow them to be used in reallife transactions such as dining or purchasing goods from a convenience store. In essence, we aim to use PDCs in the real world as a mode of settlement for goods and/or services on the Pure Diamond Network, which means that it is not solely intended to circulate merely on the diamond market, the utilisation of PDCs will extend far beyond that.
Since we have established that the value of PDCs are relatively stable, many consumers would most likely want to know whether or not the token value will steadily increase as well. Although we cannot say that prices will definitely go up, we can explain the mechanics as to why it is a very likely possibility.
Lab-grown diamonds will be sold wholesale to retailers and it is most likely to be exchanged via PDCs, as the market demand for lab-grown diamonds steadily increases, so will the need for PDCs. Due to the fact that there exists an upper limit on the number of PDCs being issued, this increased demand and use for PDCs to exchange for lab-grown diamonds will see the valuation of PDCs increase.
Moreover, the supply of lab-grown diamonds being cultivated each month will also increase so the need for PDCs to exchange the lab-grown diamond also increases, it is a delicate mechanism of demand, supply and expertise. Ultimately it is our goal to respond to the needs of the market and continue to cultivate superb quality lab-grown diamonds, and by doing so we pioneer the expansion of lab-grown diamonds across the globe, raising the demand for PDCs.
The Pure Diamond token economy will become the driving force of the Pure Diamond project through the sustainable circulation of the PDCs. As the global demand of lab-grown diamonds increase, as too will the demand for PDCs to purchase these lab-grown diamonds, the Pure Diamond Exchange which is currently in development will open in order to trade PDCs.
The Exchange will be opened independently from the project as the Pure Diamond Exchange works operates as a decentralised exchange (DEX). Asset outflow does not occur like conventional centralised control management exchanges, offering consumers a high degree of transparency and security.
The Pure Diamond Exchange will also develop measures for customer support to resolve shortcomings of the distributed DEX system. At this exchange, lab-grown diamonds and PDC tokens are exchange, it will eventually evolve into one where token holders can purchase lab-grown diamonds and exchange for other cryptocurrencies with other token holders. A very exciting development in progress for the future of Pure Diamond Coins.
The value of cryptocurrencies such as Bitcoin and Ethereum are supported by the consumption of electricity through mining. Because the power consumption and the value of the virtual currency are not linked however, there is a lack of stability in its value.
However, due to the nature that PDCs are not dependent on mining, it is possible to maintain a stable value and profit because the token is issued in concurrence with the value of a real lab-grown diamond.
Regarding the profit margin of natural diamonds, the gross profit rate is 50% - which is calculated by dividing gross profit (the difference obtained by subtracting distribution costs from consumer buying price) by net sales; lab-grown diamond mining aims to match these earnings.
On the 1st September 2018 we will be hosting an initial coin offering (ICO) token pre-sale to fully realise the Pure Diamond project. Our cryptocurrency Pure Diamond Coin (PDC) will be the token that participants will acquire during the token sale. This token will be used to exchange for our lab-grown diamonds as well as expanding areas of research and development of our products.
You can purchase PDC through our dedicated ICO website by following this link here: https://purediamond-ico.com/
Our ICO will be implemented according to the following schedule listed below. The selling prices of our PDC tokens will differ depending on each phase and are subject to change. Participants can use Ethereum (ETH), Bitcoin (BTC), Ethereum Classic (ETC) and Bitcoin Cash (BCH) to purchase and exchange for PDC tokens.
|Presale||SEP. 1, 2018 17:00 - SEP. 25 23:59 Pre-sale. Public sale||1PDC = 12 ¢ equivalent|
|Phase 1||OCT. 5, 2018 17:00 - OCT. 30 23:59 Phase 1. Public sale||1PDC = 16 ¢ equivalent|
|Phase 2||NOV. 5, 2018 17:00 - NOV. 30 23:59 Phase 2. Public sale||1PDC = 21 ¢ equivalent|
|Period||SEP. 1, 2018 17:00 - SEP. 25 23:59
Pre-sale. Public sale
|Price||1PDC = 12 ¢ equivalent|
|Period||OCT. 5, 2018 17:00 - OCT. 30 23:59
Phase 1. Public sale
|Price||1PDC = 16 ¢ equivalent|
|Period||NOV. 5, 2018 17:00 - NOV. 30 23:59
Phase 2. Public sale
|Price||1PDC = 21 ¢ equivalent|
*December 15th - December 31st token distribution will be implemented.
|Ticker||Blockchain Used||Token Contract Used Candidate|
|PDC (Pure Diamond Coin)||Ethereum||ERC223|
|Token Contract Used Candidate||ERC223|
The total number of all Pure Diamond Coin (PDC) tokens issued is the total number of token sale participants at the end of ICO. Our upper limit is set to be 150% of all PDC tokens that have been issued to participants.
Based on the funds raised by the ICO token pre-sale, we will complete the development of the Pure Diamond Network system and move on to the main net via ‘hard fork’. Pure Diamond Coins (PDCs) which are currently running on the Ethereum network as ERC 223 tokens will become independent and run on its own network.
In accordance with the transition to the main net, participants and owners of Pure Diamond Coins of the Ethereum ERC 223 token type can then swap for the new token migrating to the new Pure Diamond Network systems.
The assignment of all Pure Diamond Coins will then be as follows:
45% = Contributors of the Token Sale
45% = Company Expenses and R&D
10% = Project Team
The funds procured by the Pure Diamond Coin ICO token sales will be allotted for the following purposes:
65% Plant and Equipment Investment
25% Marketing and Advertising Expenses
10% Operation & Administrative Expenses
Mr. Ishida was appointed the Diamonds & Antwerp Ambassador from AWDC in Belgium and is an expert with a high degree of knowledge of diamonds. Ishida wanted to import more diamonds into Japan and had thoughts to import relatively inexpensive American lab-grown diamonds. However, he recalls of one time when he came across a Japanese-made lab-grown diamond and was shocked by its high quality. Since then, he began seriously considering the possibility of exporting this high-quality Japanese lab-grown diamond to the rest of the world.
Mr. Ito is appointed Senior Managing Director, Pure Diamond Co., Ltd. Ito says he feels that there is a big possibility for inexpensive lab-grown diamonds to be as viable as natural diamonds as the former are of the same quality as the latter. Speaking of the diamond industry, in the past, those who wanted diamonds were unable to obtain them as they were simply too expensive. Since lab-grown diamonds are trading at half the price of natural diamonds, lab-grown diamonds have the potential to solve this issue. Ito holds seminars in a mission to distribute lab-grown diamonds and delivering diamonds to as many people as possible.
Mr. Kawasaki is a young engineer who was active as an ethical hacker and had even worked on the NEM cases. He says that this project provides him with less security. Unlike traditional diamonds, introducing blockchain technology increases the transparency of trading and minimizes the risk of buying fakes. Information is recorded on the P2P network via encryption using blockchain technology. By functioning as a decentralized ledger, fair and unimpressible communication becomes possible. Unlike natural diamonds, it is possible to say that the risk of buying fakes is small, and as such, the risk of fraud is small too.
Mr. Yim is the marketing and technical advisor for the Pure Diamond Project board. A newcomer to the blockchain and cryptocurrency industry, Grant has amassed diverse experience from the Jewellery Industry and e-commerce related businesses. He is currently the CEO of the RS20 Group, a Hong Kong based marketing solution firm. Mr. Yim holds a bachelor’s degree in Law, graduating from the University of Exeter in Devon, United Kingdom in 2017. He brings practical legal and business professionalism to the Pure Diamond Project.