Yes. CARAT Tokens are ERC20 compliant and can therefore be kept in any Ethereum wallet that supports this protocol.
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.
Carats.io accepts Ethereum, USD, and Euro.
During the token sale, CARAT Tokens will be valued at USD 1 per token.
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.
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.
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.
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.
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.