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Diamond Standard Coins appreciate in value

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Diamond coins issued in an offering regulated by the Bermuda Monetary Authority have increased in value dramatically since their $25 million IPO in March.

About 5,000 Diamond Standard Coins were sold in the IPO for $5,000 each.

The coins are now valued at $5,880, up more than 17 per cent.

The American entrepreneur Cormac Kinney is the founder and chief executive officer of Diamond Standard, and also leads the sister company BitCarbon Technologies Ltd, a Bermuda-based blockchain development company.

Mr Kinney said: “Our investors are happy. Buyers of the coin are quite pleased.”

The Diamond Standard Coin is the only regulator-approved diamond commodity.

In addition to diamonds, each coin contains a wireless computer chip that enables electronic auditing and instant authentication and also stores a blockchain token known as a BitCarbon Coin.

The BitCarbon Coin token issuer is Bermuda-based Diamond Standard Ltd.

The owner of the blockchain token is the legal owner of the coin, and the token can be traded on digital asset exchanges.

Offerings of Diamond Standard Coins are audited by Deloitte, and the blockchain token used to transact the coin is issued under a licence from the BMA.

After initially granting Diamond Standard a six-month licence under the Digital Asset Business Act, the BMA renewed it on June 30 for a further year.

Permitted business activities are “issuing, selling or redeeming virtual coins, tokens or any other form of digital assets”.

The BMA put a cap of $25 million on the first public commodity offering of the coins earlier this year but Mr Kinney said that the regulator later increased its approval to $125 million and has now removed the limit altogether.

There is a periodic audit requirement, Mr Kinney added, but no requirement to stop trading.

He said: “We are proud of that — we have worked hard to earn the trust of the BMA.”

Mr Kinney said that a second BMA-regulated offering of the Diamond Standard Coin is under way now.

Diamond Standard currently has four staff in Bermuda, including chief financial officer James Campbell and chief compliance officer Corey Reason.

For more information about the coin offering, see www.diamondstandard.co.

Entrepreneur Cormac Kinney with an example of the Diamond Standard Coin in his left hand (File photograph by Duncan Hall)
Entrepreneur Cormac Kinney, centre, CEO of Diamond Standard, at Bermuda Tech Week in 2019 (File photograph by Duncan Hall)

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Published September 28, 2021 at 8:08 am (Updated September 29, 2021 at 8:05 am)

Diamond Standard Coins appreciate in value

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