First crowdsale of diamond-backed cryptocurrency slated this month

A crowdsale of diamond-backed cryptocurrency, PinkCoin, which is considered the first such will be held by BitGem Asset Management Ltd. (BAM) and its parent company, Precious Investments Inc., on January 18th, reports say.

BAM notes PinkCoin is its first asset-backed cryptocurrency built on Ethereum's standard currency Smart Contract. The coin is backed by a pool of certified, fancy colored diamonds (mostly pink) with a total NAV of $5,000,000 USD. Each diamond is certified and guaranteed natural fancy color. The diamonds are insured by Lloyd's of London and stored at a private vault.

To begin with, a PinkCoin token will represent a fraction of the diamond pool’s set valuation and this fraction would represent 1 USD of the initial set valuation, as per reports. The diamond pool will go through regular valuation.

According to Precious Investments Pink and such fancy colored diamonds are an asset class that has shown consistent increase in value – of around 20 percent yearly and their price has not decreased since being tracked in 1959. The company is hopeful that the ‘BitGems decentralized platform’ would serve as a key marketplace for online diamond trading, as per reports. The diamonds will be available for purchase by ether and bitcoin.