Tuesday 15 June 2021
Icecap LLC, the first company to offer diamonds via NFT “token” technology, has moved its headquarters from the United States to the Dubai Multi Commodities Center (DMCC) and has launched a line of high-end diamond and jewelry collectibles.
The tokenized “Icecap Collectibles” will include very high-end, natural diamonds in red, yellow, green, and other colors, plus unique finished jewelry pieces. A USD 3 million red diamond is included in the first offering.
Non-Fungible Token (NFT) technology gained worldwide attention in March 2021 when an NFT representing ownership of a piece of digital art was sold by Christie’s for USD 69 million. NFTs are blockchain-based “tokens” that document ownership of real-world or virtual world assets.
As blockchain tokens, once sold they can move efficiently between buyers/sellers for trading purposes, on NFT exchanges.
NFT technology has opened up diamonds as an asset class for diversification. Diamonds typically out-perform inflation, and with NFT technology they can be bought, sold, and traded almost as efficiently as gold and silver. The physical product itself is kept secure, vaulted, and insured.
Icecap revolutionized the diamond industry in the 1980s by introducing online trading technology via Polygon.
The company's diamond tokens are traded on the world’s largest NFT exchange, OpenSea.io. A buyer can hold the token as a hard asset for diversification or for collecting, sell the token to liquidate, or redeem the token and take delivery of the physical diamond itself — which can later be re-tokenized if desired.
The company said its relocation from the United States to Dubai was an easy decision because Dubai has become the primary trading center for diamonds, globally. At the same time, the UAE is a world leader in having a stable and well-evolved regulatory framework for the trading of blockchain assets.
Icecap, set up in Denver, Colorado, USA in 2020, is the first company to use the ERC721 NFT standard to provide a new way to buy and sell diamonds.