DIAMOND NETWORK White Paper By Cdiamondcoin OÜ Team 2018
Table of contents Table of contents 1 Disclaimer 2 Abbreviations 5 Executive summary 6 Team description 8 Main Team 8 External Experts and services 10 Introduction to the markets 13 Crypto currency market 13 Diamond market 14 Competitor analysis 15 DPT token description 17 Platform business model description 20 Service description 21 Digital Diamond Data Base description 21 Gemstone origin verification service descriptio 23 CDC description 24 Marketplace description 28 Key benefit 29 Roadmap 30 Technical progress on 01.03.2019 34 Fund distribution 36 Return on Investment 37 Contact us 38 Table of contents 01
Disclaimer Please read the entirety of this section carefully! This paper is a Strategic Whitepaper and its purpose is to present the Project of Cdiamondcoin Ltd for token holders and platform users in connection with the proposed token launch. The information set forth below may not be exhaustive, the products and innovative technologies described in this document are still under development and are yet to be incorporated. Further, you acknowledge that circumstances may change and that this Whitepaper may become outdated as a result; and the DN can update it as the changes occur, but is under no obligation to update or correct this document in connection therewith. This document does not imply any elements of a contractual relationship. Its sole purpose is to provide relevant and reasonable information to potential token holders in order for them to determine whether to undertake a thorough analysis with the intent of acquiring tokens. Nothing in this WhitePaper shall be deemed to constitute a prospectus of any sort or solicitation for investment, nor does it in any way pertain to an o° ering or a solicitation of an o° er to buy any securities in any jurisdiction. Nothing contained in this Whitepaper is or may be relied upon as a promise, representation or undertaking as to the future performance of the Diamond Network. The agreement between the Distributor and you, in relation to any sale and purchase of DPT is to be governed by only the separate terms and conditions of such agreement. By accessing this Whitepaper or any part thereof, you represent and warrant to the DN, its affiliates, and the Diamond Network Team as follows: (a) in any decision to purchase any DPT, you have not relied on any statement set out in this Whitepaper; (b) you will and shall at your own expense ensure compliance with all laws, regulato- ry requirements and restrictions applicable to you (as the case may be); (c) you acknowledge, understand and agree that DPT may have no value, there is no guarantee or representation of value or liquidity for DPT, and DPT is not for specula- tive investment; Disclaimer 02
(d) none of the DN, its a˛lia tes, and/or the Diamond Network team members shall be responsible for or liable for the value of DPT, the transferability and/or liquidity of DPT and/or the availability of any market for DPT through third parties or otherwise; and (e) you acknowledge, understand and agree that you are not eligible to purchase any DPT if you are a citizen, national, resident (tax or otherwise), domiciliary and/or green card holder of a geographic area or country: a. where it is likely that the sale of DPT would be construed as the sale of a security (howsoever named) or investment product and/or b. in which access to or participation in the DPT token sale or the Diamond Network is prohibited by applicable law, decree, regulation, treaty, or administrative act, and/or (including without limitation the United States of America, Canada, New Zealand, People's Republic of China, and the Republic of Korea). Prospective purchasers of DPT should carefully consider and evaluate all risks and uncertainties (including financial and legal ris s and uncertainties) associated with the DPT token sale, the DN, the Distributor and the Diamond Network team. The information set out in this Whitepaper is for community discussion only and is not legally binding. No person is bound to enter into any contract or binding legal commitment in relation to the acquisition of DPT, and no virtual currency or other form of payment is to be accepted on the basis of this WhitePaper. The agreement for sale and purchase of DPT and/or continued holding of DPT shall be governed by a separate set of Terms and Conditions or Token Purchase Agreement (as the case may be) setting out the terms of such purchase and/or continued holding of DPT (the Terms and Conditions), which shall be separately provided to you or made available on the www.cdiamondcoin.io/ www.cdiamondcoin.com website. In the event of any inconsistencies between the Terms and Conditions and this Whitepaper, the Terms and Conditions shall prevail. Cdiamondcoin Ltd reserves the right to change the Terms and Conditions set forth in this WhitePaper, and the general Terms and Conditions as published on the Website at any time without prior notice. All contributions will be applied towards the research, development, design, promotion, advocacy and licensing for a new blockchain-based Diamond Network Platform and its products. Disclaimer 03
This Whitepaper may be translated into a language other than English and in the event of conflict or ambiguity between the English language version and transl ted versions of this Whitepaper, the English language version shall prevail. You acknowledge that you have read and understood the English language version of this Whitepaper. No part of this Whitepaper is to be copied, reproduced, distributed or disseminated in any way without the prior written consent of the DN. Disclaimer 04
Abbreviations Cts. Carat CDC Certified Diamond Coi DPT Diamond Platform Token DN Diamond Network Project The whole Diamond Network platform with all of its services Distributor Any third party providing DPT token sell or buy operations. Abbreviations 05
Executive summary For almost a decade now cryptocurrencies are part of the world’s economy, since year 2009 when Bitcoin was introduced to us, a lot has changed. Nowadays there are more than 1580 cryptocurrencies, more than 11 220 markets and the market cap has reached $254 040 853 775, with a daily volume of $15 353 947 239. Due to the rapid development in the last two years Bitcoins dominance has decreased to 41.7%. Bitcoin and Ethereum are the two dominant cryptocurrencies, but their prices are very volatile, which is good for speculations, but hinders its wide adoption in long term. This is where the stable coins come in to the game. Stable coins are a class of cryptocurrencies that seek to maintain price stability with respect to a value indicator. The value indicator is typically the USD. One of the main purposes of Diamond Network Project is to solve the volatility problems, using blockchain technology, in order to create a new type of cryptocurrency – stable coin, where each issued coin will be secured by a diamond of 0.05 carat. Diamond Network is a complex long term project served in an understandable and simple manner; the research showed that the concept of a stable coins is clear to most people, but only seldom understand the described technology behind the existing stable coins. If you are a tech geek, please follow our Github and Reddit accounts, or contact us to find out more about the technical solutions. This Project covers the whole diamond industry needs and services, digitalizing them step by step. The project will be executed in 4 Phases and have 2 tokens for sale - one utility token and one security token (stable coin). Cdiamondcoin Ltd provides a platform through which 4 services will be available: Diamond origin verific tion service; Digital Diamond database; Marketplace and a CDC stable coin; www.coinmarketcap.com data on 25.06.2018 Executive Summary 06
The utility token called DPT Diamond Platform Token, gives access to the platform and its services; DPT will also be used to pay the fees for the services. DPT is a subject of ICO. The standardized security token called CDC which stands for Certified Diamond Coin is equal to 0. 5 cts of diamond. CDC is a hybrid token: security token + payment token; fulfils the ole of reserve currency and stable coin. CDC is considered a derivative, it underlies the Financial Market Regulations and the Anti-Money Laundering act. Diamond Network will release the token only after acquiring the License. It is also important to mention that a Charity Trust Fund will be established, to invest in the development of the diamond origin countries, like South Africa and India. Executive Summary 07
Team description At this moment the Diamond Network team consists of a core team of 8 people and external experts and service providers. The core team are financial market, IT and diamond market professionals, the experts cover the areas of Blockchain technology and Marketing professionals. The team grows along with the project. In this section you will find a short description about the team and experts. Main Team Igors Nikitins Founder Igors Nikitins is the Founder of the project, he has a degree in Economics, specializing on the influence f decentralized crypto-currency systems on the world economy. He is a professional day trader, investing in crypto currency and blockchain projects. He leads trainings and has his own YouTube channel followed by tens of thousands of people. https://www.linkedin.com/in/inikitins/ Andrejs Sulcs Security & IT Manager, Co-Founder Andrejs Sulcs is an IT and data security expert, who has worked in leading data security positions in the bank and telecommunication sector for more than a decade. https://www.linkedin.com/in/a-sulcs/ Team Description 08
Baiba Rozenberga Strategic development lead, Co-Founder Baiba Rozenberga is a Financial Analyst with more than 14 years’ experience in investment project development and evaluation, working in private and public sector. Has a certific te in IFRS and is qualifie to evaluate projects over 50 million EUR, according to the EC Regulations and Standards. https://www.linkedin.com/in/baiba-rozenberga-772003a/ Ilona Saart Accountant Ilona is a financial service professional with more than 20 years of experience in Corporate finance, including cash flow management, tax consulting, accounting, budgeting, internal control, and audit. https://www.linkedin.com/in/ilona-s-76a8a536/ Vitalijs Gaicuks Backend and smart contract developer Vitalijs Gaicuks -is full stack DevOps. Uses Agiles software development practices. Has 10+ years of technical experience in IT https://www.linkedin.com/in/vgaicuks/ Dilan Leeuwendaal Community manager Dilan Leeuwendaal is an IT computer expert, who specializes in Social Media and Computer Technology. He is a Microsoft Certified Professional who has experience in managing large social media platforms and supporting end users. Dilan has 1,5 years of experience working for the Dutch Ministry of Justice and Security as well as for the Ministry of Finance. https://www.linkedin.com/in/dleeuwendaal/?locale=en_US Team Description 09
Jurijs Tomilovs IT Project Management and QA Jurijs Tomilovs is business processes manager, project manager and QA. Former experienced performance/stress testing engineer and IT system administrator. Has more than 15 years experience in IT. https://www.linkedin.com/in/jurijs-tomilovs-64295710/ Bogdan Filonenko PR Manager Bogdan has more than 15 years of experience in PR strategy development and organization of international scale events. He has completed more than 100 projects for public figures, politicians, and corporations. External Experts and services SIA “Trialine” Ecosystem and SmartContract development SIA “Trialine” is a company based in Latvia, specializing in IT Project development. It has 12 years of history and experienced crew. At this moment they are working on system architecture improvement and started development of Diamond Network project ecosystem. https://www.linkedin.com/company/trialine/ http://trialine.lv/en/ Jaya.Digital (Ukraine) Initial Blockchain and Engineering Strategy Jaya.Digital is a Ukrainian IT company, well known in Ukrainian Financial service branch and local blockchain society. Jaya.Digital have experience in blockchain project development, ICO marketing strategy implementation and technical expertise. https://www.facebook.com/jayadigital https://jaya.digital/home Team Description 10
BVBA TOM Ltd Diamond Experts BVBA TOM is a family-owned company with more than 35 years of experience in the business of jewels and diamonds, located in Antwerp, Belgium. http://www.tomjewelry.be/en VSAI "Latvijas Proves Birojs" Gemological testing and certific tion According to the legislation of the Republic of Latvia, the State-owned limited liability company ""Latvian Assay O˛ce"" ( VSIA Latvijas Proves birojs) is the only institution in Latvia carrying out testing of diamonds, emeralds, sapphires and rubies, and the issue of a quality certific te. In addition, the LAO also performs testing of other precious stones. www.prove.lv Eugene Sheeleen Design & Corporate Style Eugene Sheeleen is a talented graphic designer, with more than 12 years’ experience, including ICO Landing page design, he is the Co-Founder and Art Director of DEZI BS Agency. https://dezi.eu/ https://www.linkedin.com/in/eugene-sheeleen/ https://www.behance.net/eugenesheeleen Rober Horvath Technology Expert Robert Horvath is a software developer and a blockchain technology expert, who joined the expert team at 27th of July, 2018. He is one of the first developers who joined the Ma erDAO team, to develop the DAI stable coin. He was responsible for software development in di° erent areas, in languages including solidity, bash, meteor, database programming, python, node-js. MakerDAO is currently listed in the 39th position in the Top 100 Cryptocurrencies by Market Capitalization with the current capitalization of $512 223 964. https://www.linkedin.com/in/robert-horvath-3488152b/ Team Description 11
LEADELL Pilv Law office LEADELL Pilv has more than 25 years of experience in legal advice, specialising in areas like - banking and finance, IT and Intelectual property, Corporate and commercial law. https://leadell.ee/en/ Team Description 12
Introduction to the markets Crypto currency market 2017 has been an epic year in the cryptocurrency and blockchain markets, it brought us all- time highs and Crypto Kitties. The combined market capitalization went from $15 billion in January to over $600 billion by year's end; ICOs and Venture Capitals hit new heights - $3.23 billion for ICOs and $200 million for Venture Capitals. In 2017 the prices went all time high – Bitcoin reaching almost $20 000 for one BTC and falling to $6 202 in February 2018, Ethereum had its high point at January 2018 going over $1300 for 1 ETH, and falling down to $370 only two months later in March. Bitcoins highest daily volume (24h) reached $23,99 billion a day in December 2017, but the days when cryptocurrency market share was domi-nated by Bitcoin are over, in 2017 bitcoin dominance fell below 40%, in comparison to 2009 when the bitcoin dominance was 85%. 2018 has been dramatic and taught us some lessons. ETH reached it's lower price in December falling as low as 83 USD. A lot of projects failed to keep their promises to investors. According to the Ernst &Young study, of the top 141 ICO projects surveyed, 86 percent are now below their listing price and 71% of the projects financed, haven't delivered a functioning product in a year." Crypto currencies are extremely volatile offering high profit possibi ities with high risk e.g. also high losses. Bitcoins value has increased almost 300% in a year, but it also lost 1/3rd of its value in just 5 days (17.12 to 22.12.2017), and 2/3 - 66% in just less than two months. One of Diamond Network purposes is to offer a standardized stable coin which value is backed up by a 0.05 cts diamond and is only slightly volatile. Introduction to the markets 13
Diamond market Diamonds value is appreciated for decades and it is a hundred-billion-dollar industry. Only the mining productions yearly turnover is over $12 billion (12,4 in 2016), not even talking about the related businesses – grading, certification, logistics, auct on houses and broker- ages and jewelry industry. Global polished diamond demand at the wholesale level was accounted for almost $22 billion in 2014. The total value of the diamond jewelry market worldwide was some 80.1 billion U.S. dollars in 2016, showing an increase of approximately one billion U.S. dollars from the previous year. Unfortunately, the diamond industry is still known for its problems and human rights abuse. Diamonds have funded brutal wars in countries such as Angola, Central African Republic, the Democratic Republic of Congo, Liberia, and Sierra Leone, resulting in the death and displacement of millions of people. There is a reason they are dubbed ‘Blood Diamonds’ or ‘Confl ct Diamonds’. Due to the di° erence in social costs and natural costs the diamond price per carat, depending on the country of origin, can vary even 300% from the average, but after grading it is almost impossible to tell where it is from if the origin is not known. We believe that the diamond buyers have the right to know exactly what they buy - The Project will strive to promote market transparency, reflect the true price and provide future traceability of the gem. Make expert level data available to everyone and reveal the diamond market for buyers without previous knowledge in diamond trading or crypto currencies. Introduction to the markets 14
Competitor analysis In 2017/2018 diamonds have become a popular asset class and a lot of new projects, related to the diamond industry, have been introduced (or more actively promoted) - ABC Platform with its Swiss diamond coin, D1 coin, Glitzcoin, Gidcoin, Gemera, Regerdiamond, CEDEX, Everledger, and others, even Technology industry giant IBM has a blockchain project for global Diamond & Jewelry Market tracking, and Diamond industry giant De Beers has a blockchain project called "Tracr" to track its own and Alrosa produced diamonds. Overview & Diamond Network Profile Project CEDEX ABC Platform Carats.IO Competitive Wide service coverage One of the first in Determined and Diamond pricing Advantage for the diamond the market, well fast work on algorithm, industry, 0 knowledge known product although it may user-friendly development. not be enough in Token sale App a competitive user-friendly market. Marketing Active work in social One of the best Not advertising. Active on Social Strategies media and alternative Pitches in the Have chosen a media. A lot of event sponsorship and industry. Active strategy, to let videos on presence (e.g. not PR and marketing the service Youtube, a very blockchain related), strategy. quality talk for low number of active live streams by itself. views. Several team members, direct high quality PR communication with articles. the community via telegram and other channels. Homepage Has to be improved Very Very good Basic good informative design, decent information content, frequently content. updated Is being shut down while updated. Competitor analysis 15
Overview & Diamond Network Profile Project CEDEX ABC Platform Carats.IO Products & B2B/B2C Market CEDEX exchange Earth's resources, Only one Services place (diamond allows investors Asset-Based product, diamond exchange); to easily and Cryptocurrencies. backed-up token. Database - diamond securely trade in Have started with tracking and historical diamonds while the development information; enabling diamond of CDC stable coin; holders to Swissdiamondcoi Diamond Origin effortlessly n and rescaled Verification service liquidate their the project to assets. several (8) asset- based Cryptocurrencies, like - Rubber coin, Lithium coin, Gold coin, Cobalt coin, etc. Project stage Early development Pre Launched Active Hard to evaluate ICO stage, MVP in the Exchange, CEDEX development actual product process. coin available in stage. Private stage from the two exchanges token sale via public IDEX, Coinbene. own app; looks information ICO finished in like no public available, ICO April 2018 with 14 ICO will be time not known, million USD organized. planned 30 collected. million USD, with soft cap 2 million USD. CARAT token traded on Hotbit exchange. Employees Experienced East, Main Team based Highly Main team & Experts North and Central in Israel, with qualified, very based in Israel, European team. several Asian local Swiss most experts Compact main team, representatives. team. from Celsius supplemented by Experienced team. network. several contractors Relatively big team. Network Medium size 3 partners listed, Several, but Several, but partners, well known all well known and well known well-known in specific branches reputable, market international partners. in local European leaders. business markets. partners. Competitor analysis 16
DPT token description Diamond Platform token is the object of ICO. DPT is a utility token and is not backed up by an asset, neither is considered a derivative, and is not meant to be exchanged to a di° erent token later. The sole purpose of the token is to confer digital access rights to the Diamond Network Platform and its services on a blockchain-based infrastructure. DPT gives access to - the digital diamond data base, origin verific tion service, CDC diamond coin and Marketplace. More detailed information about the services can be found in the next section – Platform business model description. The token has no investment function and does not give the right to profit (no dividends are paid), also does not promise to return the capital with or without a guaranteed return. The token will have a governance function – the token holders can participate in decision making process related to the project development via voting. The token will be used as a Fee currency to cover the Fees for the Services. DPT is accept- ed as a payment tool only by the Diamond Network, but not by the third parties, it is not meant to be a payment tool, although the owners of the token can change. More informa- tion about the Fees can be found by each service description. 10 000 000 DPT tokens will be generated, the amount is meant to be fi ed, but the func- tion of issuing new tokens and burn existing ones will be integrated. New tokens can be issued only if the token holder community votes for. According to this, the token will follow the ERC20 standard for interoperability and the ERC621 standard for token supply regula- tion, the token will have a precision of 18 decimals. The owner’s data will be stored in the blockchain. DPT token description 17
PRE ICO price for ICO Main Sale start early investors price is planned 30% discount from 5$ / 1DPT ICO price, e.g. 3.5$/1DPT *DPT token for the price 3,5 USD was available till 15.01.2019. Table No. 1 Token distribution Token Pre Sale 10% ICO Main Sale 30% Token Sale through time 30% Team 15% Advisors and Partners 10% Bounties/other 5% DPT token description 18
DPT Tokenomics! DPT Tokens are generated by the Diamond Network and available to acquire. DPT available DPT tokens are being spent by the token holder for the platform services. DPT spent for services Received DPT are burned, reducing the circulating token amount DPT available By implementing the further project Phases new services are available. Services added Due to the new services available, the platform user amount increases. User amount increase Due to the increase of DPT users, DPT demand increases DPT vale growth DPT demand increase DPT demand increase leads to DPT price/Value increase DPT token description 19
Platform business model description Diamond Network is a platform (ecosystem) with four services which will be running on the Ethereum blockchain. Two tokens will be issued – 1. A utility token called DPT (Diamond Platform token - described in the previous section), which grants access to the Diamond Network services –, and 2. A security token CDC (Certified Diamond Coin), which is a standardized asset backed token. Please take in to consideration, that the project is in an early development stage and the total development phase will take up to 2 years, each service is described according to the existing understanding and vision, it will be improved and described in detail through time. Domain www.cdiamondcoin.com, www.cdiamondcoin.io The project is market driven and demand based. We truly believe that a long term success for a blockchain project can be achieved only via strong networking with existing diamond market players and cooperation with other blockchain projects. Digital Gemstone CDC Stable Marketplace Diamond origin coin Database verification Platform business model description 20
Service description Our goal is to create a totally transparent diamond market that would be traceable, reliable and responsible. Digital Diamond Database description: The Digital diamond Database, will stores the information about each diamond which goes through any other service Digital provided by the Diamond Network. Diamond Database It will store the data about: each diamond tested (its’ test results and base line, historical data - if available, certific te data), each CDC diamond, and each diamond listed in the Marketplace. Service description 21
Digital Diamond The Database will be compatible - include the same Database criteria lines/parameters according to the data gathered by characteristics the laser- 4C parameters listed in existing certificates Will have a search engine with several parameters; Search engine will also support a search by existing certificate number, issued by GIA and others Will have an automatic data upload system, that will collect the data from other services (decentralized, Ethereum blockchain, proof of Existence; not possible to type in manually); Will be cumulative, recognizing the parameters of a diamond which already exists in the Database; If the diamond is tested by the DN – a digital (and physical) certificate will be issued and stored in the Database; The list of previous owners can be displayed, if data available (Could be possibly a service of extra charge); A historical price chart can be displayed - (Could be possibly a service of extra charge); Comparable prices can be displayed – like Rapaport price, Market place price of similar products listed, an algorithm calculated sales price which takes in to consideration all the factors incl. the place of origin. Income model/ Usage of the basic Database service will be free of charge Fees for the DPT token holders; In-depth data about the diamond can be displayed for a fee. The model will not di° er from the way most data basis work, for example, Company registers - information like Company name, legal address, VAT status can be acquired free of charge, but every next information category has a fee, like – list of owners and their data, collateral register, Access to balance sheets etc. The fees will be collected in DPT tokens. After DN receives the token, it will be burned. The amount of fees and the categories are not set yet! Service description 22
Gemstone origin verification service description: The Origin Verification service is closely connected to the Database development and will be offered as a service for Gemstone origin the DPT token holders. verification Diamond Network will strive to collect the diamond samples from all over the world to set the baseline for every mine in the world, creating a digital DNA library in the Database, which will allow to track back to mine every diamond in the world. Finding the right technology and collecting the samples will take up to 5 years. At least one physical laboratory will be established; Verification service Can be developed in a legal certification center; characteristics Digital (and physical) gemstone passport/certificate will be issued after testing and added to the Database; Gemstones tested can be listed in the Marketplace; Certification maximizes the value of diamond jewelry by using the only testing which can prove provenance; Origin verified diamonds can add as much as 20% in value; Analysis time in ~1 minute. Income model/ Fees are collected in DPTs’ Fees Service description 23
CDC description: CDC stands for Certified Diamond Coin. CDC Stable It is a hybrid token: security token + payment token; fulfils coin the role of reserve currency and stable coin; CDC is a standardized token: 1 CDC is 0.05 cts and its value is ~$45 (~40 EUR), the price always represents the Rapaport* value plus the packaging costs, insurance costs; CDC is considered a derivative, it underlies the Financial Market Regulations and the Anti-Money Laundering act. Diamond Network will release the token only after acquiring the license. Underlying asset CDC market value for the token holders will always be description represented by a diamond: Weight (Cts) 0.05; and Size 2.4; Originality Natural; Physical asset Clarity Range VS; management Color range G The asset 0.05 cts is chosen with a purpose – its price is low in USD, not volatile (Not an investment diamond) and easily accessible (frequently used in the jewelry industry). The DN will hold the assets in 0.05 cts diamonds and investment diamonds, which value 100% covers the issued CDC token amount. Investment diamonds are a bit more volatile and their value tends to increase through time. DN will audit its assets every quarter. If the market value of diamonds in stock has increased – additional CDC tokens will be generated and stored in the Cold Wallet, if the value will decrease – CDC stored in the cold wallet will be burned or additional diamonds will be bought to cover the CDC amount issued/generated. Rapaport diamond price reports are the only reports internationally used to establish the price. http://www.diamonds.net/, www.rapnet.com Service description 24
In case, the diamond value in stock has increased and new tokens have been generated – the DN, could use the gained value and tokens in several ways: Underlying asset description a) Sell them to gain funding for purposes like Charity work, or cover operating or development costs – if and needed; Physical asset b) Pay out the extra tokens to CDC token holders as management bonuses, for trust. The token holders will have the right to vote and make a decision about how to use the extra funding gained. Asset security and The diamonds are packed in a security case produced by Protocol of Proof the Italian company CERTILINE (www.certiline.com), of existence Stored in an automated bank vault, managed by a robot, which eliminates the human factor; connected to the Database. Insured and audited at least once in the quarter; High level security system; A protocol of Proof of Existence, which includes hash code of pictures, stored on the blockchain; Backup of original data. Token CDC Tokens are generated by the DN according to the Management amount of diamonds stored in the stock of the DN and according to the market demand; CDC Tokens which are generated, but still owned by the DN, are stored in the cold wallet; Service description 25
Token usability The CDC token holders can: a) Use the CDC as a reserve currency, to keep their funds in a safe, non-volatile crypto currency – a small yearly fee will be applied to cover the storing of the asset; b) Use the CDC as a payment token, a small transaction fee will be applied; c) Redeem CDC to physical 0.05 cts diamond from the DN any time; d) Or exchange the CDC for an Investment diamond on the Marketplace, e.g. buy investment diamonds from certified partners using CDC If the token holder redeems the diamonds from the DN – the tokens will be burned, because it will not be covered by the underlying asset anymore; Asset security and Fees are charged in DPT tokens. Protocol of Proof of existence Yearly maintenance fee (demurrage fee), for underlying asset management of 0.3% will be applied; a) Fee is set up in USD and converted to DPT; b) Applied and recalculated at the transaction or redeem moment. c) Yearly maintenance fee will not be applied for the first two years to p omote the project. Transfer fee 0.12% Redeem Fee 0.5% Token logo Service description 26
Photo of the Physical 0.05 cts asset Service description 27
Marketplace description: The marketplace will be a B2B/B2C platform, which connects buyers and sellers, it is a catalog of investment diamonds for sale. To list a diamond for sale: Marketplace The diamond has to have a certificate or it has to be issued; The diamond has to be evaluated; The diamond will be added to the Database for future tracking; Marketplace Only certified partners can list their p oducts; characteristics Has a Search engine by product category, location and other relevant criteria; Has a two-way link to the Database – e.g. If the gem has been tested or has been in the Database before – relevant information about the gem, like it’s digital pass, is displayed; After the sales operation is performed, the transaction information is added to the Database keeping the record of the gem. If it is a gem which is already in the database, a new record line is added (transaction amount, date, owner’s data.) Prices of the products are listed in CDC (and ETH/FIAT) The price of the diamond is determined by the seller. But the buyer will have the possibility to check historical prices if available, compare to other similar diamond prices, compare the price to Rapaport price and compare the sales price to the price set up at the evaluation process. Diamonds bought can either be stored in Diamond Networks Bank Vault or delivered to the buyer; Service description 28
Income model/ Service can be paid in DPTs. Fees The list of diamonds can be viewed free of charge, but detailed information, like country located and owner, price comparison can be viewed for a small charge. Diamond Listing fee for the sellers 0.05% of the sales price. Key benefits Socially responsible ICO – registered Company and Financial Regulator approved token generation event for DPT; No avoidance of regulations – CDC stable coin is a standardized derivative and will be released only after obtaining Financial Market Authority issued license. No centralized Database management. Secure Cold Wallet storage for CDCs; Physical asset safe storage in fully automated Bank-Vault managed by a robot. No human factor; Asset digital and physical traceability – proof of existence protocol, safe case packaging and quarterly audit; Service description 29
Roadmap The founder of the project Igors Nikitins had the first idea ab ut a diamond related stable coin back in year 2015. Till year 2017 he researched the crypto currency market and at the end of the year he started to search for a local diamond market professional who would be interested in cooperation. In October 2017 the first steps where made towards the implementation of the project; In the 4th quarter of 2017 the first internal White Paper was written for the CDC stable coin. To create the CDC a lot of administrative and development activities were carried out. But in the 1st quarter of 2018, the project scale was redefined as the Diamond Network Platform where CDC is only one of the products/services available. Due to this CDC is one of the best developed products of the Diamond Network Platform now – even if it is not included in the first development Phase Project development Phases: 1st Phase: Development of Marketplace platform and initial Database; 2nd Phase: CDC Stable coin is released; 3rd Phase: Set up of Verification service, fully functional Database linked to all services; 4th Phase: Charity trust fund is opened. Roadmap 30
Historical activity log for CDC diamond coin 1Q 2018 – 4Q 2019 Activity Schedule 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Jurisdiction search, Legal advice - Swiss, Luxemb., Liechtenst. Core Team formation Business concept development for Diamond Network Platform Technical Specification for Marketing & Communication strategy Fee model development Web page development (ecosystem) Permission manager/DPT token/DPT exchange dev. Configuration storage/Diamond fingerprint tech. dev. Project approval with Estonian Financial Intelligence Unit, Licence Acquisition Incorporation of Cdiamondcoin Ltd Setting up a homepage, with information for a closed group MVP programming for Marketplace and database Early investor attraction/ Private token sale Homepage update Public token sale Marketing and Communication strategy activities CDC licencing CDC token/DPass/CDC exchange dev. First phase service available for DPT services in 2019. Roadmap 31
First Phase development Roadmap milestones Q1 - Q2 Jurisdiction Search & Business Q3 2017 Project Start concept development Nov 1, 2017 January 1st 2017 2018 Q2 Q3 Q2 Technical Specific tion for Private Token Sale Programming Marketing strategy approved June 15 th May 1st April 1st Q4 2018/Q3 2019 Use Case Q3 Incorporation of Legal entity development, Smartcontract Cdiamondcoin Ltd. updates. Aug. 9th Oct. 15th Q1 Token Sale with Q4 discount closed Start of MVP programming Jan. 15th Nov. 15th 2019 2018 Q2 Token license Q4- CDC Security Q4 Platform alfa acquisition token license version available April 15th December December Roadmap 32
Activity description for the First Phase Activity Schedule 2017 2018 4Q 1Q 2Q 3Q 4Q Jurisdiction search, Legal advice - Swiss, Luxembourg, Liechtenstein Core Team formation Business concept development for Diamond Network Platform Technical Specific tion for Marketing & Communication strategy Fee model development Web page development (ecosystem) Permission manager/DPT token/DPT exchange dev , Configur tion storage/Diamond fingerprint tech. de . Project approval with Estonian Financial Intelligence Unit, License Acquisition Incorporation of Cdiamondcoin Ltd Setting up a homepage, with information for a closed group Database development in cooperation with SCS Global services Pilot Project implementation with SCS Global Early investor attraction/ Private token sale Homepage update Public token sale Marketing and Communication strategy activities CDC token/DPass/CDC exchange dev. Web marketplace dev. First phase service available for DPT services in 2019. Roadmap 33
Technical progress on 01.03.2019. Diamond Network Platform ecosystem is based on Ethereum blockchain (DappHub tools, Solidity) Web3js, Python, etc. Q4 2017. The initial smart contract for DPT token was written. (To ERC20 standard token functions we have added an option of exchange - ETH to DPT. Basically, when ETH comes to contract address, DPT token, depending on the rate, is sent back to the sender) Burn options were implemented and tested Q1 2018. Marketplace draft written Diamond database options were analyzed DN architecture draft Q2 2018. DPT token contract was improved and issued DN platform ecosystem development (a part of our ecosystem is dApp with DPT user-friendly purchase option. dApp is connected to the blockchain, so basically if a client is using Mist or Metamask Google Chrome extension he can purchase DPT easily. The users who use Ledger, Trezor, myetherwallet.com (or other) can also purchase the tokens by sending ETH to the contract address. Detailed information is provided on our site. Every client can view his balance in his profile, by adding hi ETH address. A Calculator as an option is also implemented (DPT to ETH) A non-blockchain Diamond database prototype was developed Redeemers (Swap) contract for the migration to new versions of DPT in the future was developed and successfully tested We secured our ecosystem with Cloudfla e, SSL and CSRF protection from XSS attacks, protection against SQL injection and other threats.etc As well all server administration is handled by a team of professionals Roadmap was developed. See the status on a certain date Q3 2018. Referral system development for PRE ICO purposes Option to order CDC diamond sample for DPT. Redeem tests CDC ecosystem development (Marketplace draft improvements) Q1 2019. ICO contract was rewritten to handle min. DPT purchase amount CDC ecosystem development (CDC contract development, Dpass development, Marketplace v.1 development) Roadmap 34
Table No. 2 Status on 01/03/2019 Component Descriptions Dependencies Status Permission Solidity based contract to authorize roles Under manager to manage CDC ecosystem actions. development DPT Token Solidity based utility token contract. ERC20 Token Standard Done DPT Exchange Solidity based contract which provides DPT Token, Done ETH-DPT exchange Configur tion storage Configur tion Solidity based storage contract that stores Under storage CDC configurable variables li e fees, etc. development Diamond Diamond parameterization, fingerprint Physical device, Under fingerprin creation with physical device and initial Permission manager development price setup. CDC Token Solidity based cryptocurrency contract. ERC20 Token Under Diamond coin tokens (CDC) = 0.05 carat Standard development Dpass Solidity based multisignature contract for DPT Token, CDC diamond exchange. Each diamond has his Token, Permission Under own Dpass contract with purchase history, manager, development attributes like price, sale ability and etc. Configur tion storage CDC Exchange Solidity based contract which provide CDC Token, Under Analysis ETH - CDC, CDC - real diamonds Configur tion exchange ability storage WEB marketplace Python Django based application that Web3.js, python, Under provides access to all of listed diamonds Django development with purchase and selling ability Roadmap 35
Fund distribution Potential fundraise via ICO $15 million. Soft Cap $ 8 million. Fund distribution as shown below: Software development $ 3.9 million; Infrastructure $ 1.4 million; Legal expenses & Licensing $ 2.3 million; Marketing $ 1.2 million; Assets (Liquidity provision) $ 5 million; Operational cost reserve $ 1.2 million; Fund distribution 36
Return on Investment Assumptions Correlation to/between ETH, BTC, DGS, MKR calculated; ETH 3 years forecast calculated; Regression, exponential smoothing, volatility, dummies factor - taken in to consideration; Business model and road map taken in to consideration; ROI calculated from discounted values. Risk free discount rate 6%. Optimistic and pessimistic scenarios calculated (High/ Low). Results By initial investment 3.50 USD: 2019 2020 2021 2022 High - 72% High - 2490% High - 3321% High - 4424% Low - 10% Low - 21% Low - 1828% Low - 2726% By initial investment 5 USD: 2019 2020 2021 2022 High - 21% High - 1713% High - 2294% High - 3067% Low - -23% Low - -16% Low - 1250% Low - 1878% Return on investment 37
Contact us Please do not hesitate to contact us if you have any further questions. We will be happy to answer them DIAMOND NETWORK: https://cdiamondcoin.com https://cdiamondcoin.io https://facebook.com/Cdiamondcoin https://medium.com/Cdiamondcoin https://twitter.com/Cdiamondcoin https://github.com/Cdiamondcoin https://www.reddit.com/user/Cdiamondcoin SEND US AN E-MAIL [email protected] Please do not hesitate to contact us if you have any further questions. We will be happy to answer them Contact Us 38