Diamond Standard Reports 300% Increase in Tokenized Diamond Sales
Tokenized diamond sales have surged by 300% in response to concerns about a spreading banking system crisis, according to a report by CoinDesk. The rise in sales coincides with the recent bankruptcy of Silicon Valley Bank (SVB), regulatory shutdowns of Signature Bank, and fears of contagion to other banks and digital assets.
Diamond Standard, a company that tokenizes and standardizes diamonds, reported the increase in sales of tokenized diamond products. These tokens are created by embedding physical diamonds into “coins” of standardized value, and each coin contains 8 to 9 diamonds. After digitizing through Ethereum-based digital coin bitcarbon, diamond-encrusted tokens can be traded on multiple exchanges.
Komak Kinney, the Founder and CEO of Diamond Standard, said that their investors view diamonds as a way to diversify and hedge their portfolios. He added that tokenized diamonds offer investors an opportunity to participate in rising prices, as diamond prices are still catching up to other precious metals.
The recent surge in tokenized diamond sales shows how investors are seeking alternative investments in response to market volatility and instability. The appeal of tokenized diamonds lies in their stability and uncorrelated nature with other assets, making them an attractive option for investors looking to diversify their portfolios.
Overall, the rise of tokenized diamond sales reflects the growing interest in digital assets and their potential to offer new investment opportunities. As investors continue to seek out alternative assets, tokenized diamonds could become an increasingly popular option for those looking to hedge against market volatility and uncertainty.
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