- October 23, 2018
- Posted by: Mor Hazen
- Category: carats blog posts
With our recent launch of the first diamond-backed coin, it is important for us to explain clearly how our digital currency is unique and a clear revamp of the previous generations of crypto.
In a world awash in digital currencies, one could be forgiven for not paying too much attention to our recent announcement regarding the much-awaited launch of our token – the CARAT. Anyone not familiar with our vision, our product and our model might write the CARAT token off as another one of the long list of boring, flaky cryptocurrencies. In reality, our crypto is on a whole new level – with a stability, robustness and real-world value that is unprecedented in the world of digital coins. Additionally, our tokens are not our end goal in and of themselves. Rather, they are an early step on the way to our ambitious and exciting project to build the first financial market for diamonds.
The key to all these benefits lies in the structure of the CARAT. Our tokens are backed by diamonds, meaning that each and every CARAT is linked intrinsically with a real, shiny diamond locked in our vaults. This synthesis – of digital currency and the world’s most exclusive commodity – bestows a number of unique advantages:
Stability you can measure in stone
CARATs belong to the latest generation of cryptocurrencies – stable coins. While the first generation of digital coins (such as Bitcoin and Ethereum) may have sparked the imaginations and libidos of relatively small communities of hacktivists and techies, the coins’ volatility scared away much of the general public (preventing any serious adoption of the currencies). With this in mind, crypto entrepreneurs began developing various methods of ensuring stability for new tokens.
Many of these other stable-coins link their value to various national currencies. However, these real world currencies are themselves prone to bouts of inflation and deflation. By being backed by diamonds, CARAT tokens link their value to the value of diamonds – a natural resource with high stability by nearly every standard. Diamonds are currently continuing a slow, steady positive appreciation of over three decades! The choice to back our tokens with diamonds ensures that their stability will be conferred to our tokens as well.
Real-world value you can carry in your pocket
Another problem facing traditional cryptocurrencies is their lack of real world use and concrete value. Most coins have basically been conjured out of thin air, with their value based on promises of future ventures. Additionally, the aforementioned price fluctuations prevented their acceptance as real currency. This lack of a concrete, reliable value meant that all those investors amassing vast crypto reserves found themselves stuck with a collection of virtual coins they could not actually use.
Here too, the use of diamonds to back our tokens is a gamechanger. Since every token is backed by a real token, investors will never be stuck with digital wallets filled with thin-air. Our investors can redeem their CARAT tokens for real diamonds at any time.
Investing in the foundations of something BIG
For many ICO’s, the choice to launch their own digital currencies is simply a method of collecting investments quickly and on the cheap – funds they then plan on using to pay for their phone app, small-scale product or any other dubious project. Even worse, for many such companies, the crowdsale of their tokens is the end-goal itself – their method of making profits.
At Carats.io, our token is an integral part of our bigger ambition – the creation of the first financial market for diamonds. Our blockchain currency is one of many technological solutions our team is developing to meet real obstacles and problems (you can check out our other tech here). Rather than being a fundraising gimmick, our token was developed as a specifically-designed solution to real exchange and fiscal challenges facing the diamond industry. By launching a globally recognized digital token as a standardized means-of-payment, we are enabling quicker and more efficient transfer of commodity ownership within the industry. This is just one of many building blocks we are developing with our eyes on the bigger goal – creating the first financial market for diamonds.
Interested in finding out more about the unique attributes of the CARAT token? Join our Telegram group for updates and information.