PinkCoin, a digital currency based on global diamond reserves, will be launched on January 18

Original title: PinkCoin, the first cryptocurrency backed by diamonds, will launch a Crowdsale project on January 18

BitGem Asset Management Co., Ltd. (BAM) and its parent company Precious Investments Ltd. will launch a crowdsale for its first cryptocurrency PinkCoin, which is backed by diamonds. Specifically, PinkCoin is a cryptocurrency developed on Ethereum with a pool of diamonds of a fixed color as its reserve. The crowdsale will be launched at 9:00 am on January 18, 2016. The third-party diamond insurance will be valued by Lloyd's of London.

One PinkCoin token will initially represent one cent of the fixed valuation of the diamond pool. This cent in turn represents one dollar of the initial fixed valuation.

The companies said the diamond pool would be valued regularly.

Convertible to Bitcoin

PinkCoin can be exchanged for Bitcoin or private gems based on the current valuation of the diamond pool described in the crowdsale project terms. Initially, the asset pool is valued at $5 million, so the crowdsale project will include 5 million PinkCoin tokens. BAM can issue 95 million new PinkCoin tokens in the future on a non-dilutive basis .

PinkCoin holders can exchange them for other assets or tokens held in a pool of assets on the BitGem retail market, which will be available in the second quarter of 2016.

Users can trade PinkCoin with exchange providers or wallets that support token trading and must comply with Ethereum standard contract APIs including the Ethereum Client Agreement.

The value of goods continues to rise

Dr. Nataliya Hearn, CEO of Precious Investments Ltd. , said colored diamonds are the world's most precious commodity and the most concentrated wealth.

He also said: "The Argyle mine in Australia, the world's largest producer of colored diamonds and the producer of 90% of the world's pink diamonds, is scheduled to close within the next decade, so the current annual global production of colored diamonds will be greatly reduced. " The demand of the jewelry industry is growing, but the trend of decreasing production of colored diamonds is inevitable.

Dr. Nataliya Hearn added that pink and colored diamonds are the only asset class that appreciates more than 10% per year. And since they were tracked in 1959, these diamonds are the only commodity that has never dropped in price. He said: "All this increases the credibility of PinkCoin in the market."

The company states that blockchain technology will be the next revolutionary leap in the field of e-commerce. Among other advantages, this technology will allow many people to invest in this type of asset in the form of ownership. In addition, cross-border transactions will become easier and people will be able to have liquid assets. Blockchain will also allow the programming of contracts in applications to be carried around. For example, smart investment plans.

Online Diamond Marketplace

Kashif Khan, chairman of Precious Investments Ltd. , predicted that the BitGems retail platform will become the main online diamond trading market. The PinkCoin plan will make diamond market participants feel that they should seize this retail trading opportunity.

According to a company statement, BAM’s goal is to deliver global reach, financial flows, provenance and fraud control to the wholesale jewelry trading industry. The company will achieve this goal by developing an online marketplace for jewelry-related asset transactions using blockchain and related technologies.

Precious Investments Ltd., which uses PNIK technology to trade in the OTC Markets, has chosen to enter the colored diamond trading industry after purchasing a portfolio of colored diamond wholesale traders for $4 million.