Bitcoin

Diamonds are (finally) eternal in the Ethereum blockchain

They reached the market from Open sea Non-consumable tokens (NFT) Represent diamonds.

In the past, There have been various attempts to mark diamonds and other gemstones and metals. But the founder and CEO of icecap, Jacques VoorheesHe said the problem with previous attempts was that treated diamonds as consumableswhich is not so.

He told Cointelegraph when he first heard about NFTs through his son Erik voorhees (ShapeShift CEO), everything fit together. “They are as different as a snowflake,” he said. “All efforts to create fungibility with an unusable item failed. And even though they have used blockchain technology, they are still unsuccessful. “

“I confirmed that this was from 1972 when the West Coast Commodities Exchange tried to create fungibility and diamond futures contracts. It took about three days and the market fell because the contracts weren’t really similar . “

Diamonds are (finally) eternal in the Ethereum blockchain
Diamonds are (finally) eternal in the Ethereum blockchain

NFT, which represents a diamond

NFT representation of a diamond. Source: ice cap

Eric Voorhees promised to buy a diamond

Before tokenizing All diamonds must be certified by the Gemological Institute of America (GIA). and then be sent to Gem Certification Assurance Lab (GCal), which checks the GIA certificate and offers a guarantee:

“So if it turns out that their assessment was incorrect, they pay the price difference and secure it with an insurance policy that covers them if they have to pay for it.”

The problem that solves icecap is that It is almost impossible for private investors to sell diamonds without a big discount, since there is no secondary market. However, according to Voorhees, this is an untapped $ 10 billion opportunity First of all, it will be a small market niche where mainly people who are rich in crypto and pioneers live. Voorhees claims that Erik, who invested in the company, also promised to buy a diamond on the OpenSea market.

Icecap does not believe there are regulatory problems

After detailed consultation with his lawyers, Voorhees does not believe that NFTs that represent diamonds pose a regulatory problem:

“They’ve looked closely at what we do and how we deal with the transfer of ownership and how we deal with VAT in this way. You asked a lot of questions. Your conclusion is that there doesn’t appear to be a regulatory problem at the moment. . “

He added that the lawyers would have told him that definitely contacted all potential regulators in advance.

Erik Voorhees recently explained this Now is the time to invest in real assets.. According to Jacques Voorhees ShapeShift could soon enable trading in NFTs.

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