DiamCoin, a proposed token that will be anchored to a physical resource, in this case – Diamond, was set to be launched in a few weeks on the Ethereum blockchain. Considered to be a cryptocurrency stablecoin, its value will be directly proportional to a given quantity of diamonds. For example, each Diamcoin token will have the same equivalence with a millicarat of a diamond. Investors in Diamcoin will have the chance to cash in physical diamonds if they wish.
The company behind DiamCoin, Hi Diamonds is a software solution provider who is responsible for serving the diamond industry. After doing it successfully for several years, he tried to create a blockchain solution and his proposal was to create a kind of diamond cryptocurrency.
The platform of choice was Ethereum [ETH] but after the launch of the Bitcoin Cash Wormhole platform, the company has now moved its development to focus its token based on the BCH blockchain.
The reasons given for passing include fast and spacious blocks, low transaction costs and high security. If they successfully launch Diamcoin on the BCH platform, this will effectively make it the first project it represents stablecoin on the Bitcoin Cash platform. The scheduled launch for Diamcoin is at the start of next year.
The idea of having cryptocurrency tokens and coins whose value is supported by physical resources is less tested in the real world rather than having cryptographic resources anchored in legal currencies. In recent months, the cryptocurrency industry has seen a proliferation of stablecoin based on the fiat currency that sought to replace Tether's stablecoin whose value and legitimacy was threatened by a scandal that hit its parent company Bitfinex.
The case of a stablecoin supported by physical resources has not yet been extensively tested, but Hello Diamonds has managed to get on board an economist with a Nobel Prize for his name, Sir Christopher Pissarides. Pissarides is responsible for the design of the system and the general council.