The technology focused enterprise Hello Group, established in 2010, is working on a cross-vertical blockchain ecosystem, including a diamond-backed cryptocurrency and a diamond trading platform.
Hello Group, one of the world’s leading white label technology providers, operating across several industries, including trading and blockchain technology, has announced a new project called Hello Diamonds. The ultimate goal of the company is to provide a platform for the seamless investing in precious minerals, while simultaneously offering the world’s first fully diamond-backed cryptocurrency. Hello Diamonds’ innovative approach convinced 2010 Economics Nobel Prize winner Sir Christopher Pissarides to join the board of directors.
The proprietary software of Hello Diamonds connects 7,000 diamond manufacturers around the globe with a list of more than 800,000 stones and taps into the $80 billion diamond market. The company uses blockchain technology to drastically reduce costs, increase transparency and simplify the process of acquiring and trading diamonds. In order to achieve a high security standard when storing the valuable commodity, Hello Diamonds partnered with the world’s largest diamond trading platform, International Diamond Exchange (IDEX). The highly experienced jewellery retailer will take care of all the diamond buying, logistic and vault aspects, ensuring maximum security for Hello Diamonds customers.
Part of the ecosystem is the infrastructure solution DiamDrop, which will be able to push the price of diamonds 25 percent below the BlueNile standard price. With DiamDrop, Hello Diamonds is building a direct pipeline from the manufacturer to the buyer, without intermediaries and commissions. In order to tackle illegal commerce with blood diamonds, the company only deals with loose and certified diamonds in respect to the Kimberley norm. Heart of the project is the Ethereum based cryptocurrency DiamCoin, which is the first token to be 100 percent backed by physical diamonds. The digital currency will be used on the official DiamCoin exchange, but can also be adopted by any other project that requires a non-volatile cryptocurrency.
Sir Christopher Pissarides became a true believer in the revolutionary concept. “I was immediately intrigued by the blockchain technology and Hello Diamonds’ vision, which for me is the only viable solution in the world of blockchain,” he said. “While blockchain technology has the potential to disrupt the current financial system, it is still mainly used for speculation. If we can eliminate the volatility and bring in stability, we now have the financial tool necessary to replace the archaic payment systems in place today.”
During the past decades, diamonds have proven to be a reliable and stable investment, compounding more than 30 percent of growth in the preceding ten years. Meanwhile, the share of internet activity is climbing as well, with one in six jewellery purchases being made online in the US last year.
“With continuously growing demand for both diamonds and a non-volatile cryptocurrency, we believe that now is the perfect time to merge blockchain technology with the diamond world,” said Jeremy Dahan, CEO of Hello Group.