Photograph of David Go, CEO of Gemblock, a blockchain gemstones trading platform
Who doesn’t adore diamonds and gemstones? According to the Grand View Research Report, global diamond market size is $87.01 billion as of 2018 and is expected to grow 3.0% annually from 2019 to 2030.
In addition, value of raw materials, which may be a key to becoming the second Tesla, is as good as value of gemstones. In particular, an interest in nickel, main raw materials for electric batteries, has increased as eco-friendly electric vehicles and others are spotlighted as future means of transportation due to Covid-19. CNBC, a global economic media platform, reported on the 23rd (local time) that an increased demand for electric vehicle batteries will cause a sharp rise in raw materials prices, citing a recent report by U.S. investment bank Goldman Sachs.
A reality is that, it is difficult for individuals, who are not businesses, to access leading mines overseas such as those in Brazil where these resources (various gemstones and raw materials) are buried. In fact, as current gemstones and raw materials market is controlled by giant corporates with a very complex distribution structure, price of gemstones to consumers is naturally high. Furthermore, equity issues inevitably arises due to high barriers to entry for investments.
As a solution to this situation, Gemblock confidently presents a blockchain system. Individual investors can not only buy gemstones at bubble-free price but also own raw materials mines. We met David Go, CEO of Gemblock, a blockchain-based gemstones trading platform, that is about to be launched this year and heard about detailed stories.
1. To understand market dynamics for gemstones and raw materials, one needs to be knowledgeable about mining. Are you experienced?
Brazilian mines are not only rich in raw materials that Korea does not have but also renown as one of the world’s leading diamond producers. In particular, they have the world’s third-largest nickel reserves (based on USGS, 17% of the world’s storage) whose value has soared due to electric cars.
As a teenager, I immigrated to Brazil and have witnessed Brazilian resources more vividly than anyone else with 20 years of experience with various businesses. Also, I can confidently say that I am an expert who is well aware of local situations as I have stayed there for a long time.
Gemblock has currently partnered with 6,000 hectares of licensed diamond mines and is moving toward the global market by expanding its partnerships overseas.
2. What is the strength of Gemblock from the perspective of the gemstones buyer?
Consumers who want to buy gemstones are dissatisfied with high prices and complicated distribution processes formed in market. They are also concerned about alteration and authenticity of a warranty. To resolve these issues, Gemblock cooperates with local mines to reduce intermediate distribution processes, resulting in its price competitiveness. Furthermore, its 5D System (1.Dig, 2.Design, 3.Divide, 4. Deposit, 5. Direct selling) is all one-stop. With direct distribution channels, consumers can purchase gemstones at reasonable prices and are provided with professional appraisal services following international diamond grading system.
- 1D: Dig: Mine operation
- 2D: Design: Gemstone processing and jewellery production
- 3D: Divide: Reasonable distribution system with users
- 4D: Deposit: Backup by diamonds and gemstones
- 5D: Direct selling: Prosumer creation
3. What is strength of Gemblock from an investor’s perspective?
It is well known that gemstones and raw materials have high investment values. In particular, gemstones is increasingly valued for investment compared to gold. According to China Daily, Chinese millennial consumers born between 1982 and 2000 prefer diamonds to gold, and sales of gold-related products in China fell to 18.4% in 2011 from 28.1% in 2011.
Importantly, current market has high barriers to entry for individual investors. To overcome this challenge, Gemblock introduced blockchain and issued its own token GEM Token, allowing them to invest in expensive gemstones starting with small amount. When gemstones that have been secured locally are registered in Gem Store, consumers can purchase them at a lower price using GEM Token than using fiat currency. Due to a linkage with gemstones, GEM Token value is guaranteed as much as gemstones value. Also, 40% of GEM Token sales amount will be used to purchase gemstones to facilitate a mutual exchange of GEM Token and gemstones. Investor can check current status and assets of proven gemstones on our website any time.
4. What are your future plans and blueprints for Gemblock?
As Gemblock Foundation’s holdings increase, we will launch gemstones rental business to maximize non-sales profits. This business model effectively enables users to enjoy jewelleries at 1% of purchase prices. An era of sharing and enjoy together has come, not borrowing.
In addition, we plan to facilitate purchase of raw materials mines ownership with tokens. Brazil has abundant raw materials: the first in graphene, namely future oil, 98% of world’s Niobium, and 17% of world’s nickel reserves. Gemblock is thoroughly preparing to lead a new economy in which individuals own these Brazilian mines with tokens.
Finally, compared to Bitcoin mining, which has recently been raised as a main culprit of environmental pollution, Gemblock will be spotlighted as an alternative and emerging investment tool. Bitcoin mining consumes fossil fuels and increases carbon emissions while Gemblock, linking gemstones and raw materials with digital token, does not involve such processes. Therefore, we are xconfident that it will grow as the best environment-friendly investment asset class globally.
2.Gemblock Twitter: https://twitter.com/Gemblock_co/
3.Gemblock Community: https://t.me/gemblock_co/
4.Gemblock Instagram: https://instagram.com/gemblock_co/
5.Gemblock Youtube: https://youtu.be/4qmz9M7UjJI