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- Far East Development Fund of Russia signed a cooperation agreement with Diamundi of Singapore concerning the launch of digital diamond tokens D1
Russian State-owned Far East Development Fund (FEFD) and Singapore-based Diamundi Pte Ltd entered into an agreement to cooperate in the launch of D1 digital tokens linked to high class Russian diamonds.
FEDF will support D1 in sourcing high quality diamonds from Alrosa, the largest diamond company in the world, and its downstream polishers. Russia accounts for over 30% of global diamond production and almost all of the diamonds are produced in the Russian Far East. Alexei Chekunkov, Chief Executive Officer of FEDF and member of the Board at Alrosa, said: “We believe that the approach taken by D1 will succeed in making natural diamonds an investment asset class attractive to various investor groups, drive higher demand for natural diamonds and support further growth of the diamond industry in Russia. Russian diamonds come with flawless provenance, highest quality and should be considered a safe long-term investment that also has a strong emotional value.” FEDF is also working with the Russian government to promote special conditions for blockchain-related tech projects in the Russian Far East and is planning to facilitate trading of D1 on a specialized digital exchange in Russia later this year.
Founder of Diamundi Hogi Hyun and Vitaly Buterin
D1 is promoted by Hogi Hyun and his team out of Singapore and Tokyo. Mr.Hyun is an investor with over 30 years track record in Singapore, Hong-Kong and New York. He developed an interest in alternative asset classes while working with the largest Asian families. “In fact the richest people – starting with royals – have been investors in diamonds for centuries. But with all the sophistication of contemporary financial markets we don’t see any meaningful alternative of investing in diamonds to the ancient mode of buying actual stones. The problem with diamonds was that they were all different and could not be traded as a commodity. We have developed the D1 Matrix – an intelligent neural network that represents the value of any diamond expressed in a harmonized unit of measurement that we call D1. D1 refers to the economic indicator M1 – the monetary base. D1 is the diamond base of the economy. And as diamonds are founded on the most solid of all foundation – human love – we are confident that D1 will enjoy broad support both from the financial and tech communities. Diamonds should become investors’ best friends as well.”
D1 is preparing to launch in mid 2018. All the coins issued are backed by investment - grade diamonds sourced from Alrosa and its downstream partners, and certified by the Gemological Institute of America (GIA).
According to Mr.Hyun, D1 coin has several uses: (1) as an investment instrument to get exposure to polished natural diamonds; (2) as a defensive asset for the volatile crypto market, now worth over $300 Billion; (3) as a currency for the Diamond Hearts peer-to-peer e-gifting application. Mr.Hyun expects that the D1 Matrix diamond pricing mechanism and the convenience of blockchain will help turning diamonds into a respectable investment asset class that in turn will drive up the demand for natural diamonds.