Ethereum Stablecoin Will Migrate to Upgraded Bitcoin Cash Network
DiamCoin, not to be confused with Diamco.in, a similar token by different folks, is intended to be a version of a stablecoin that is pegged to the value of a diamond. Each token will be pegged to the value of a millicarat of a diamond. So a thousand tokens equals 1 carat of diamond, and 14,000 tokens would presumably equal a 14-carat diamond. It’s not a stablecoin in the sense that you put a certain value in and get that same value out, although you are free to cash out in diamonds themselves.
Hello Diamonds has been serving the diamond industry for a few years with software solutions. This is their first move into blockchain. Their founders, based in Cyprus, had previously created a company called Hello Football, which helps use real-time fan data to place a value on soccer players.
“With the help of computational linguistics and in-house algorithms, we are able to process and understand any set of data including natural language resources found online. We at Hello Football strongly believe that the football industry as a whole is ripe for a revolution. As price discovery specialists, we are introducing a new way of perfecting the real-time valuation of football players.”
Like the majority of token developers, Hello Diamonds were first looking to build on Ethereum. They even finished a token that was scheduled to go live in the coming months, but they’ve realized that Ethereum may not be the best option anymore.
The recent introduction of Wormhole, a smart contract platform which runs on Bitcoin Cash, pushed them to switch their operation over to BCH, effectively making them the first project representing a stablecoin at all on Bitcoin Cash, and one of the earliest tokens to launch on Wormhole, with a projected launch of early next year at the latest.
The reasons for the switch are obvious to informed parties at this point: fast and spacious blocks, low transaction fees, and high security.
The concept of tokens backed by physical assets stored somewhere is still relatively untested in full. It’s even more exploratory than the idea of USDT, which supposes that the user should trust the bank account of Tether, and the same goes for other stablecoins as well.
In their favor, though, is the fact that Hello Diamonds has tapped a Nobel-prize winning economist, Sir Christopher Pissarides, who has helped design the system and advise it. The tokens will apparently be tradeable assets, meaning that regular crypto users will have opportunities to arbitrage their way into owning diamond assets. According to a video on the company’s site, DiamCoin will offer an important hedge against a full-scale collapse of the crypto market.
“Should the case be that all cryptocurrencies disappear, your DiamCoin will never be lost. It will still hold the value of the physical diamond, which was in a vault when the purchase was made.”
They have yet to release a whitepaper which further explains the specs and details of the system, but this reporter has learned that they are actively working with developers from Bitcoin.com to hasten the development of their software.
Images from Shutterstock
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