DiamondBack: Inflation-Proof Digital Currency
A digital currency designed to be inflation proof "sound money", substantiated by rare and unique natural diamonds.
The DiamondBack Advantage
Stableprice Payment Coin
DiamondBack (DBK) is designed to maintain a stable price of 1 USD, providing a reliable medium of exchange in an increasingly volatile financial world.
Inflation-Proof Design
Unlike traditional currencies that lose value over time, DBK is designed to maintain its purchasing power, protecting holders from the erosion of wealth through inflation.
Global Accessibility
DBK provides innovative access to stable currency and wealth-building opportunities that can outperform declining local currencies.
The Problem with Traditional Currencies
Declining Value
Traditional fiat currencies consistently lose value over time, with many currencies losing at least 10% of their value against the USD in 2018 alone BEFORE the pandemic created an excuse for massive money printing.
Limited Access
Approximately 2 billion people worldwide are excluded from mainstream financial systems due to high access costs and other limitations.
Expensive Remittances
International money transfers often come with exorbitant fees and extended waiting periods, particularly affecting those who rely on remittances from family members working abroad.
Zero Intrinsic Value
Every currency introduced throughout history has reached their intrinsic valuation given enough time - zero. Fiat currencies maintain flaws they have had for centuries.
The DiamondBack Trust Model
Diamond Substantiation
For every 1 USD received for DBKs, 1 USD equivalent of wholesale diamond value is placed in the third-party diamond trust.
Secure Storage
Diamonds are secured in safekeeping vaults at Brink's Global storage facilities, ensuring physical security of the assets.
Insurance Protection
All diamond assets are insured by Lloyd's of London syndicate Willis Towers Watson, providing additional security.
Independent Trustee
Assets are held in trust by a top rated 3rd Party Trust, ensuring the diamonds and tokens can exist in perpetuity independent of DiamondBack Group.
Annual Audit
PricewaterhouseCoopers (PwC) conducts annual inventory and assurance review of the DiamondBack Trust.
Why Diamonds?
Rarity and Value
Investment-grade diamonds are extremely rare in nature. While billions of dollars' worth of rough diamonds are mined every year, most do not meet the criteria for investment-grade gemstones.
Unlike precious metals, investment-grade diamonds are unique assets that are traded, graded, and valued individually, making them ideal for substantiating a digital currency.
Technological Innovation
Advances in diamond identification and valuation have transformed what was once an art into a science with rigorous exactness and measurement.
DiamondBack leverages blockchain technology to resolve the historical lack of fungibility that has hindered the diamond industry from taking advantage of financial market leverage tools.
Diamond Valuation Methodology
Rapaport Price List
The underlying diamond assets are priced according to the published Rapaport prices, the diamond industry benchmark for pricing.
Quality Assessment
Pricing considers the 4C's (cut, clarity, color, carat) and other quality measurements, along with market factors like demand, scarcity, and liquidity.
Regular Valuation
The Rapaport Report provides pricing values on diamonds and is published weekly, allowing for regular valuations to be performed.
Annual Audit
DiamondBack performs an annual valuation on the diamonds subsequent to the annual inventory and assurance review/audit by PwC.
Cryptographic Registration
Blockchain Registration
Blockchain and distributed ledger technology (DLT) make it possible to transparently register everything about a diamond asset, including provenance, valuation certification, chain of custody, insurability, and pricing.
Solving Fungibility
The registration of assets on a blockchain solves the fungibility issue of diamonds and opens the door to commoditization and financialization.
Trust and Transparency
This transparent registration creates trust in the system, allowing users to verify the existence and value of the diamond assets substantiating the DiamondBack currency.
The DBK Coin Explained
Stableprice Payment Coin
Each DBK coin is always priced at 1 USD
Medium of Exchange
Can be sent P2P, C2B, or B2B
Store of Value
Designed to maintain purchasing power
Unit of Account
Consistent valuation for business use. Bitcoin and Ethereum are too volatile to make a budget or a payroll with, therefore businesses 100% adopt cryptocurrency for commerce.
13 Reasons to Buy DBK Coins
Receive Rewards
DBK Coin holders may receive free coins deposited into their wallets via the DiamondBack Express Club.
Stable Exchange
DBK Coin is a stable means of exchange (Stableprice coin).
Insurance Option
DBK Coins can be purchased off chain and insured on the DiamondBack Express Platform if desired.
Crypto-Fiat Bridge
Functions as a bridge between cryptocurrency and fiat currency worlds, providing a safe and secure on and off-ramp.
More Reasons to Choose DBK
Diamond Substantiation
DBK Coin is substantiated by certified, rare, unique natural diamonds.
Versatile Transactions
DBK Coin can be sent P2P (peer-to-peer), C2B (customer-to-business) or B2B (business-to-business).
Value Storage
DBK Coin can be a store-of-value. Many non-asset backed currencies are susceptible to loss of value.
Blockchain Benefits
DBK Coin has all the benefits of the Ethereum Blockchain and can be deployed across various exchanges and trading platforms.
Final Reasons to Choose DBK
Membership Utility
DBK Coin's utility as a payment coin facilitates usage within a closed-loop environment, as a private membership coin for Members to use between one another.
Democratized Access
Tokenizing assets levels the playing field and gives everyone an opportunity to take advantage of an asset class that was once reserved for the few.
Financial Inclusion
DBK Coin, in concert with exchanges and trading platforms, will provide access to financial services to those who could not historically access them.
Diamond Purchasing
DBK Coin purchasers may choose to use their DBK coins to purchase diamonds at wholesale rates through the DiamondBack Express Club.
DBK Coin Usage & Utility for Individuals
Direct Transactions
Conduct transactions in USD valued coins without any intermediaries, reducing costs and increasing speed.
Risk Reduction
Avoid the risk of storing fiat in a bank or on an exchange, protecting your assets from institutional failures.
No Bank Required
No requirement to open a traditional bank account to store fiat currency, providing financial access to the unbanked.
Global Remittance
Use blockchain technology to transact and remit globally at a lower cost than traditional financial systems.
Diamond Access
Gain access to the diamond market at wholesale costs through the DiamondBack Express Club.
DBK Coin for Merchants & Companies
Price Stability
Maintain a stable price for goods and services as DBK Coin is valued to the USD, allowing for consistent pricing and accounting.
Reduced Fees
Avoid expensive conversion and withdrawal fees associated with standard cryptocurrency conversions through strategic partnerships with established cryptocurrency exchanges.
No Chargebacks
Prevent chargebacks associated with credit card charges which subject merchants to fees despite not having completed a sale.
Alternative Payment
Accept DBK Coin as an alternative to other volatile crypto or fiat currencies, providing more payment options for customers.
Cross-Border Business
Conduct business transactions using USD valued DBK Coin across international borders without currency conversion complications.
Benefits for Exchanges
Current Exchange Challenges
- Accepting fiat deposits and processing withdrawals using traditional financial systems is complicated, inefficient, expensive and can pose legal difficulties
- Exorbitant fees for small value transfers
- Transfer times of 3 to 7 days for international wire transfers to clear
- Unfavorable currency conversion fees subject to compliance policies that may not allow for cryptocurrency transactions
- Overall high transaction fees
DBK Coin Solutions
- Listing a cryptocurrency substantiated by a secure, insured and audited physical asset with sustainable value
- Less friction than inherent in traditional financial systems
- Stable price point for trading pairs
- Transparent valuation mechanism
- Increased user trust through physical asset substantiation
The Evolution of Money
Money 1.0: Commodity Money
Physical items with intrinsic value
Money 2.0: Fiat Currency
Government-issued with no intrinsic value
Money 3.0: DiamondBack
Digital currency substantiated by real assets
There are some areas of human activity, society and technology that seem to be moving at the speed of light. Music and movies beam out of satellites, in some places people can vote for public office using just their phones, and self-driving electric cars roll through our streets without even the slightest touch to the steering wheel. But not everything has changed, and innovation benefits do not reach everyone quickly. Money is such an example.
Global Currency Crisis
2B
Affected People
Using currencies that lost 10%+ value vs USD in 2018
-99.99%
Venezuela
Currency value change vs USD in 2018
-61.10%
Sudan
Currency value change vs USD in 2018
-50.50%
Argentina
Currency value change vs USD in 2018
Today, 2 billion people are using a currency that has lost at least 10% of its value against the U.S. dollar just in 2018. Citizens of Venezuela and Sudan, to Turkey, Brazil and India, are able to store some of their savings in U.S. Dollar denominated accounts, or in other stronger currencies, and do so in any manner available to them. This is done to protect themselves and their families from the loss of purchasing power and, in some cases, financial ruin.
More Countries Affected by Currency Decline
The chart shows countries whose currencies lost more than 10% of their value against the US dollar in 2018. This currency devaluation has a devastating impact on citizens' savings and purchasing power, highlighting the need for stable alternatives like DBK. ***Covid-19 was a once in a century pandemic and even pre-Covid, historically nations with fiat currency, have more of than not experienced major inflation and currency degradation.
Redefining Money
The Problem with Modern Money
The real problem with money is the way it is defined. In our modern world, we define money as debt. It can only be borrowed into existence and the interest is payable to someone. We have all been convinced that this is the only way. It is not.
Money is nothing more than an agreement amongst people. Money is represented by a commodity, instead of debt.
The DiamondBack Solution
The concept of creating 'Sound Money' by way of a digital asset that is substantiated by investment-grade diamonds was the premise behind developing the DBK Coin.
The DBK Coin is a cryptographically-registered digital asset that contains the functional utilities of digital and fiat currency. It is a medium of exchange, a store-of-value and a unit of account. It can be sent and received in seconds with no risk of it being retained or confiscated.
DBK Coin Functionality
ERC-20 Smart Contract
Can function on all EVM-based blockchains as well as others such as Solana.
Payment Platform
Works on closed-loop payments platforms like DiamondBack Express
Transactability Bridge
Connects traditional fiat-based payments with blockchain systems
Safe Alternative
Provides stability compared to volatile cryptocurrencies and declining fiat
Overview of Stablecoins
Volatility has hampered the widespread adoption of cryptocurrencies as a store of value. Because of the associated volatility - huge price fluctuations - most cryptocurrencies do not provide for a proper means of exchange or unit of account. Businesses are reluctant to accept digital currencies when their value can drastically drop overnight.
Stablecoins provide an alternative to this volatility. Although highly variable, the daily trading volume of Stablecoins oscillated at around $40-50 Billion USD (March 2020) which is about a 1000% increase from March 2019 and continues to grow. Stablecoins are also gaining popularity among traders. Furthermore, since March 2020, the Stablecoin market cap grew another 94%, as of June 2020. This market continued to exhibit exponential growth throughout 2021.
Comparable Stablecoins: USDT Tether
Launch Date
Launched in 2015
Market Cap
April 2025 $144 Billion USD
Daily Trading Volume
Has had many days with $83 billion (on par with Apple stock)
Backing Mechanism
Tether converts cash into digital currency to anchor, or tether, the value to the price of national fiat currencies like the US Dollar, the Euro and the Yen. Notionally, every Tether is always backed 1-to-1 by traditional currency held in audited reserves. 1 USDT is always equivalent to 1 USD.
Platform
Like DBK, Tether is built on top of many Blockchains leveraging the security and transparency that they provide.
Comparable Stablecoins: USDC
Launch Date
Launched in October 2018
Market Cap
$60 billion
Founding
USDC was co-founded by Circle and Coinbase in September 2018. The U.S. Dollar-backed token is now substantiated by over 100 partners.
Mission
Introduced in an effort to establish a standard for fiat on the internet, USDC is listed on dozens of crypto exchanges across the globe.
DiamondBack's Innovation in the Stablecoin Market
Unique Value Proposition
DiamondBack's DBK Coin brings innovations to the Stablecoin market as a unique inflation-proof Stablepriced digital currency entering this parabolic Stablecoin market.
According to PwC, "Stablecoins are in the early development phase at this time and the design paradigms are still forming for what may be the future of money..."
Key Differentiators
- Inflation-proof design maintains purchasing power
- Substantiated by rare natural diamonds
- Independent trust structure for long-term stability
- Annual audits by PwC
- Insurance by Lloyd's of London syndicate
- Secure storage by Brink's Global
The Diamond Market
Trade in diamonds has gone on for centuries. These gifts of nature are extremely rare in investment-grade quantities. While there are billions of dollars' worth of rough diamonds mined every year, most of these do not meet the criteria for investment-grade gemstones. Unlike precious metals, investment-grade diamonds are unique assets, in such a way that they are traded, graded and valued individually.
Technological Innovation in Diamond Valuation
From Art to Science
Technological innovation has made the process of diamond valuation progressively easier. The result of this has been the slow development of a robust international diamond market.
Most of this technology has focused on identification and valuation improvements. What was once an art, is now provided through the rigors of scientific exactness and measurement.
Blockchain Solution
Diamonds, just like gold, have always been considered valuable, but diamonds' historical lack of fungibility has hindered the diamond industry from taking advantage of the leverage tools of the financial markets.
DBK, by using today's Blockchain technology, with the development of the Diamond Trust Model, can successfully resolve these problems. Hence, the DBK Coin may be the ultimate solution to the challenges faced by diamonds as a financialized commodity.
DiamondBack Design Philosophy
Ethereum Network
DiamondBack chose to issue the initial DBK Coin on the Ethereum network (ERC-20 smart contract compliant token) because of its prevalence in the market and is only interested in the placement of the assets on the Blockchain for Trust purposes.
Multi-Platform Functionality
DBK Coins will function both within the Ethereum ecosystem, as well as the no gas fee DiamondBack Express platform, as well as other partner payment systems as they are established.
Blockchain Agnostic
DiamondBack tokens can be placed on any viable Blockchains that have sufficient security, demand, and infrastructure requirements.
Cross-Chain Valuation
The cross-chain valuation is simple and easy to implement as it is nothing more than an accounting function, which will be conducted through the Trust Model. No matter what Blockchain the DBK Coins are listed on, the purchaser of a DBK Coin will have confidence the values will remain the same.
DiamondBack Express Club
Rewards System
While you hold DBK coins and participate in the 3rd party DiamondBack Express Club, you may earn rewards. These rewards are added to your wallet in the form of additional DBK coins, USD, or regional fiat currency.
Rewards are added to DiamondBack Express member's wallets periodically as determined by market factors and activity. This is not to be confused with "staking" or a "proof of stake model." There are no specific incentives or rewards promised for "locking up" coins for any particular period of time in DiamondBack Express.
Private Membership Group
DiamondBack Express, a private membership group of individuals, merchants and companies agree to use DBKs as a Stableprice payment coin for the purchase or sale of goods and services between one another.
By participating in DiamondBack Express activities, you will earn rewards and coins to be added to your wallets.
Each DBK coin is always priced at 1 USD, however there are programs and specials that may enable purchasers to get more than 1 DBK per USD. There are also rewards and incentives for referrals and exchange bonuses, and incentives for using the coins for commerce.
Understanding the Diamond Trust
Diamond Substantiation
Specific DBK coins/tokens are not directly connected to an individual diamond or diamonds for security purposes. The diamonds are stored by Brinks, insured by Lloyds of London syndicate, Willis Towers Watson, and audited by PricewaterhouseCoopers (PwC).
Third-Party Trust
The diamonds are stored, managed, and held in a trust by an internationally well-respected and established third-party global trust. This removes the risk of DiamondBack management absconding with diamonds, creditors or investors trying to liquidate diamonds.
Long-Term Safety
This essentially guarantees that the diamonds will stay safe and sound for years to come no matter what happens in this changing world. This is the lowest risk situation for the diamonds that DiamondBack management could imagine.
Usage Options
One can choose to use coins to purchase diamonds or use coins to purchase other goods and services that are available from being a member of DiamondBack Express. Coins do not provide any claim to the Diamond Trust Reserve.
Value of the Diamond Trust
Value Protection
So, why is the Diamond Trust valuable to a DBK coin holder then? The Diamond Trust guards value. The Trust is not directly tied to the coins in legal terms, the two entities are separate.
Because of the Trust, DBK token holders cannot be exposed to a corporate raider or a hostile takeover attempting to gain ownership of the diamonds.
Perpetual Operation
If necessary, the Trust can continue in perpetuity, as well as the DiamondBack tokens without input from DiamondBack. This means that your DBK coins will work and be substantiated by the Trust regardless of the performance or non-performance of DiamondBack management.
This distinction removes DBK from being a "security", which allows you to sell it without a broker, use it to make purchases, and earn referral fees and bonuses which allows the potential network effect of DBK to be global.
Scarcity and Value
The more of these extremely rare diamonds are added to the Diamond Reserve Trust, the lower the circulation of these upper echelon stones remain in the market, creating a depleting supply of these rare diamonds.
DiamondBack Express reserves the right to add tokens/coins to members' wallets. DiamondBack is not a security, there can be no promised return and the price of the coin is stable. As acceptance and membership grows within DiamondBack Express, DBK coin holders may receive additional coins in their wallets that help DBK's ecosystem grow throughout the world.
DiamondBack Express Club is to enable DBK to become a stable payment mechanism across the globe.
Strategic Relationships create the Trust Model
Brinks Global
Worldwide Diamond Secured Storage Facilities
Clifford Chance
Legal Services – New York
Gemological Institute of America (GIA)
Diamond Grading System
SumSub
KYC/AML Platform
DiamondBack Trust Model Continued:
PricewaterhouseCoopers (PwC)
Business Advisory Services – Bermuda
Chancery Legal
Legal Services – Bermuda
Rapaport Information Services
Recognized World Diamond Pricing System
Willis Towers Watson, Lloyds of London Syndicate
Diamond Insurance
Bridging the Gap
Bitcoin and DiamondBack
While Bitcoin is flawlessly filling the need for an immutable permission-less distributed ledger, DBK seeks to be the bridge between the 95+% of the population that are not yet cryptocurrency enthusiasts.
Much of the current crypto landscape is an opportunity to gain wealth, but for the common person it is too risky. DiamondBack aims to create a wealth storage mechanism with as little risk as possible and provide a mechanism that counteracts the inflation found in fiat currencies.
Accessibility for All
For most of the world, outside of DBK, nearly all cryptocurrencies that can earn value are a luxury that is not affordable.
DiamondBack provides solutions that support the blockchain enthusiast, the computer novice who needs to be able to reset their password or insure their coins, and everyone in between. The static price of DBKs allow it to be used on all blockchains, for all people, regardless of education or computer skill level. All that is required is a basic device, internet access and basic comprehension ability to enjoy the benefits of DBK.
Long-Term Vision & Strategy
Initial Launch
Introducing the DBK Coin to the market is the first step in a much grander strategy.
Organic Growth
DiamondBack intends to grow its ecosystem organically through DiamondBack Express, a 'Members Only' club that accepts the value of the DBK Coin at 1 USD.
Global Integration
DiamondBack's strategy is to integrate the DBK Stableprice payment coin into global digital exchanges and traditional financial systems.
Adoption through Assimilation
Creating an environment for 'Adoption through Assimilation' to make DBK an acceptable form of payment and alternative currency.
Adoption through Assimilation
DiamondBack's philosophy of "Adoption through Assimilation" creates a mechanism for organic growth. Daily, consumers must have the assurance and trust that the money they use today is as useful tomorrow; that they can have confidence in it.
DBK fills a void of stability in both the crypto and fiat economies. This niche provides open access to "everyone, everywhere, everyday" to have a financial presence which allows the banking of the un-banked and creates the on-ramp for mass adoption for all.
Macro-economic Issues
Loss of Purchasing Power
In the previous illustrations, the citizens of these countries suffer a loss of purchasing power on a continued basis. As a result, they change their behaviors and spending patterns. People around the world face daily challenges relating to the financial system.
The global reach of the internet, cellular networks and smart phones now provides people worldwide with the potential to access the financial system in new ways. However, they still face high entry fees levied by traditional banking and payment platforms.
Financial Exclusion
Approximately 2 billion people are excluded from the mainstream financial system due to high access costs. Most are denied access to the benefits of internet activity, online shopping and online financial transactions. However, what's noteworthy is that these same excluded individuals send and receive $600 billion in annual remittances.
Most people have no alternative to using local fiat currency for their daily needs. Even within the financial system, the residents of these countries, approximately 2 billion people, use currencies that lost more than 10% of their value against the US dollar in 2018. This is very destructive to individuals and households long-term and inhibits their ability to maintain and improve their financial well-being.
Inflation Impact
Every currency has its own internal inflation rate that significantly impacts its citizens. According to the Bureau of Labor Statistics Consumer Price Index, prices in 2018 are 17.53% higher than in 2009. For centuries, nations have struggled to manage their currencies without major erosion of wealth from common people by way of they silent tax known as inflation. The pandemic numbers after 2019 make these numbers look tame.
17.53%
Cumulative Price Change
2009-2018
2.70%
Average Inflation Rate
Annual rate 2009-2018
214.537
CPI in 2009
Consumer Price Index
252.146
CPI in 2018
Consumer Price Index
Forex markets recognize the inflation rates among currencies. These are adjusted in the rates and the costs passed on to the consumer. When inflation rates are low, the costs are effectively hidden. In the US for example, inflation is not a topic of conversation. However, it was once a daily topic. In countries that experience significant inflation, people change their behavior as it impacts their lives.
The DiamondBack Foundation
25-Year Plan
Part of DiamondBack's 25-year plan is the establishment of a DiamondBack Foundation, which will serve to encourage the use of DBK Coin and Blockchain technology in humanitarian projects. After 2050 all DBK profits will go toward infrastructure charity.
Everyone can agree there are worthwhile projects and goals that are purely humanitarian in nature. The DiamondBack Foundation is part of that mission of the founders, to build an ecosystem accessible to all people that benefits all people.
Network Growth
If purchasers learn and understand that eventually their actions inside the network will help go towards funding much needed projects and developments, this will also grow the network. The platform adoption rates will improve.
The long-term goal is to turn DiamondBack into a trust owned by humanity, where all profits go towards improving the planet. This will encourage people to understand that when they join the DiamondBack ecosystem, they are doing something good for themselves, everyone else and future generations.
Digital Autonomous Organization
The result of the overall plan will likely be a Digital Autonomous Organization or DAO like structure with the majority of the processes involved being automated, and any non-automatable processes for DiamondBack to be voted upon by the DAO.
As technology continues to advance, transaction costs will decrease. Fair pricing based on choice and access and the inclusion of everyone is a recipe for success. Burdensome and predatory fees make it expensive to be poor inside the reigning financial paradigm, so much so, that too many people are excluded today.
The DBK Coin is designed for Everyone. Everywhere. Everyday.
Conclusion
The Evolution of Money
While most of the technology surrounding how we receive payments, store money and make payments has changed, the essence and nature of money has not. Even though humans can perform peer to peer transactions, you are still faced with the inherent weaknesses of fiat currencies.
The DiamondBack Solution
The DBK Coin is cryptographically secure and substantiated Stableprice payment coin, aimed at providing the world's 2 billion unbanked and underbanked people with a stable currency that is substantiated by the value of the Diamond Trust containing rare unique natural diamonds.
DBK Coin supply grows organically based on market demand. DBK is designed to be the best Store-of-Value, Medium-of-Exchange and Unit-of-Account available for the world's diverse populations, and functionally become the bridge between the crypto and fiat worlds.
Currency Market Primer
Exchange Rate Determination
Currency markets do not set exchange rates between trading pairs. In theory this means that currencies are free to fluctuate. Nevertheless, this was not always the case. For example, exchange rates were fixed at a monetary conference called Bretton-Woods in 1944 based upon a decreed valuation to the price of gold, allowing for a 1% variance.
This accord led to the formation of institutions to administer and oversee the process, which continue today in the form of the International Monetary Fund and the World Bank. In 1971, the United States effectively ended the system by decoupling the US from gold reserves and allowing for this free-floating exchange.
The Petrodollar System
This act, followed quickly by the 1973 agreement between the U.S. government and Saudi Arabia to price all oil sales in U.S. dollar denominated contracts, took the world's 'reserve currency' status to an entirely new level, best described as "exorbitant privilege."
In the past, foreign exchange trading (called forex or Fx) was settled largely through banks and large traders. Fx markets were off limits to all but a few select corporations and the top high net worth individuals (HNWI). Today, forex markets handle $US 5 trillion per day and are open to everyone.
The Nixon Shock and Its Aftermath
The most recent material changes to the U.S. Dollar happened in the summer of 1971, when President Nixon decoupled the U.S. Dollar from the asset that was used to back it - namely gold. All we have done since then is to build technology to enhance the speed and efficiency of money movement (what many refer to as 'rails' or 'payment rails'), nevertheless nothing has been done to improve the essence of the money itself.
"By a continuing process of inflation, governments can confiscate secretly and unobserved, an important part of the wealth of their citizens. The process engages all the hidden forces of economic law on the side of destruction and does it in a manner which not one man in a million is able to diagnose."
This quote is excerpted from Keynes's book, 'The Economic Consequences of the Peace', and in it, he attributes the statement to Lenin.
As a result, fiat currencies of today maintain flaws they have had for centuries: They all face the same fate. Every currency introduced throughout history has reached their intrinsic valuation given enough time - zero. They allow for manipulation on the part of foreign and domestic governments and they can be easily confiscated and stolen. Many people have no recourse to their loss of purchasing power in fiat currency.
The Forex Market Structure
Market Fragmentation
Although when speaking about foreign currency exchange we refer to a marketplace, the reality is that there is no one single exchange. The market is very fragmented as it is made up of sovereign banks, large corporate banks, forex trading companies and large corporations.
There is precious little room for arbitrage between exchanges. Published Fx rates are arbitrary points in time. Trades are based upon a single rate where some unit 'p' of X currency is traded for some unit 'q' of Y currency, plus a spread placed by the exchange. The next trade is usually some +/- delta of 'p' and 'q' of the respective currencies. Published averages are sometimes calculated off just a few large trades.
Interbank Rate
The interbank rate is used between large banks for executing currency swaps. The rate is calculated as the midpoint between the buy and sell rates, or the bid/ask spread. These bid/ask spreads are set by the brokers based on an order book of trades.
When it comes to remittances, these rates are usually not even published. The conversion rate is just calculated and provided, and the high fees are added on top of that. The Company has received expressions of interest from many emerging market principals to facilitate remittance using DBK Coin and for good reason.
Consumer Exchange Rates
Retail Markup
When it comes to actual money exchanges, each organization sets its own rate. For example, VISA and MasterCard use a non-disclosed forex rate that is not discoverable and then on top of that they charge a 1%-3% fee for each transaction at either the point of purchase or ATM.
Bank Rates
Banks can sometimes go as high as 4%-6% above the interbank rate, along with a fixed fee based on the amount of currency exchanged.
Arbitrary Setting
The reality is the exchange rates are floating, unstable, and arbitrarily set at the retail level. Banks and other financial institutions set their own FX rates.
LIBOR Comparison
This is similar to when banks colluded to calculate the LIBOR rate, ostensibly based upon the cost of the money they borrow among themselves. Many other interest rates are based on this single metric. This includes the $US 350 trillion derivative markets.
Currency Valuation Challenges
Following the LIBOR scandal of 2012, wherein it was revealed that the rate has been manipulated for three decades, the rate's current neutrality can also be reasonably questioned. Assuming it is no longer manipulated, then the rate becomes what the banks agree to charge each other. These rates are subject to manipulation. All of this impacts the value of a currency.
No currency today has an inherent value in and of itself. Currency valuations are based on the confidence placed in them by the users of the currency. As a case in point, zero or negative interest rate policies are in place to force spending and consumption and zero and negative interest have the added consequence of robbing savers of their ability to build wealth. This has resulted in the massive move into equity markets in search of yield over that last two decades.
Important Disclaimers
General Disclaimer
PLEASE READ THIS ENTIRE SECTION AND DO NOT TAKE ANY ACTIONS UNTIL YOU FINISH READING IT. THIS WHITE PAPER IS A SUMMARY OF UAB DiamondBack LT's DBK TOKEN SALE AND A BRIEF INTRODUCTION TO UAB DiamondBack LT's PURCHASER'S PRINCIPLES. IF YOU HAVE ANY DOUBT ABOUT PARTICIPATING IN THIS TOKEN SALE YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S) AND IMMEDIATELY DISREGARD ANY OF THE INFORMATION CONTAINED IN THIS WHITEPAPER, OR NAVIGATE AWAY FROM THE DIAMONDBACK WEBSITE AND DO NOT BECOME A DBK TOKEN HOLDER.
No Warranties or Representations
UAB DiamondBack LT, "DiamondBack Group" or "The Company" makes no warranties or representations as to the success of the development or implementation of such technologies and innovations, or achievement of any other activities as are noted in this white paper, and disclaim any warranties or representations implied by law or otherwise, to the extent permitted by law.
Not a Prospectus or Investment Offer
The information provided in this Whitepaper, the DiamondBack Group's webpage, and the terms and conditions published by DiamondBack Group do not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities in any jurisdiction. The tokens to be issued by DiamondBack Group are not intended to be an investment in ordinary shares of UAB DiamondBack LT or any other company. DBK Token holders do not receive any form of dividend or other revenue right.
Additional Disclaimers
No Liability
UAB DiamondBack LT, its directors, employees, contractors, and representatives have no responsibility or liability to any person or recipient (whether because of negligence, negligent misstatement or otherwise) arising from any statement, opinion, or information, expressed or implied, arising out of, contained in or derived from or omission from this paper.
Regulatory Scrutiny
Regulatory authorities are scrutinizing businesses and operations associated with digital currencies and blockchain technology on a global basis. In that respect, regulatory investigations or actions may affect, limit or prevent UAB DiamondBack LT from developing its operations in the future.
No Proprietary Interest
Purchase of DBK Tokens does not grant the purchaser any proprietary interest in UAB DiamondBack LT, nor does it grant the purchaser any right to dictate UAB DiamondBack LT's actions, nor any other right that would generally attach to an investment. Purchase of DBK Token is offered as an outright purchase of the DBK Token itself, and is not offered as, nor warranted to be, an investment.
KYC / AML / ATF Compliance
Compliance Policy
It is the policy of DiamondBack to prohibit and actively prevent money laundering and any activity that facilitates money laundering or the funding of terrorist or criminal activities by complying with all applicable Anti-Money Laundering, Anti-Terrorist Financing and Sanctions Regimes, as well as various Sanction laws, regulation and regulatory guidance from the European Union, United Kingdom, United States of America, Canada, and United Nations, as applicable jurisdictions in which DiamondBack does business.
Vetting Procedures
DiamondBack will comply with KYC/AML/ATF best practices and its own KYC/AML/ATF policies. The Company will ensure all its buyers pass vetting procedures.
DiamondBack has a KYC functional service built in the app and web-based Platform plus has a secondary service provider to supply AML/ATF functions beyond the basic KYC and OLFAC requirements. The secondary service provider will be SumSub, a 3rd party KYC/AML/ATF software solutions provider.
Statement on Forward-Looking Information
Since actual results or outcomes could differ materially from those expressed in any forward-looking statements, DiamondBack strongly caution the token purchasers against placing undue reliance on any such forward-looking statements.
Any forward-looking statement speaks only as of the date on which such statement is made. We undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.
Statements of or references to our intentions or those of any of our directors are made as of the date of this document. Any such intentions may change in light of future developments.
Forward-Looking Statements
This document may contain forward-looking statements and information relating to, among other things, the DBK token sale, DiamondBack Group's business plan(s), strategy(ies) and industry. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to, UAB DiamondBack LT's management.
When used in the sales materials, the words "estimate," "project," "believe," "anticipate," "intend," "expect" and similar expressions are intended to identify forward-looking statements. These statements reflect management's current views with respect to future events and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from those contained in the forward-looking statements.
Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Our forward-looking statements have been based on assumptions and factors concerning future events that may prove to be inaccurate. Those assumptions and factors are based on information currently available to us about the businesses that we operate.
Additional Risk Factors
Limited Transactability
Limited purchase and/or adoption of DBK Coin, such that the cost of Diamonds to substantiate the limited number of DBK Coins issued may be greater than the consequent utility achieved therefrom.
Illegal Transaction Risk
If purchase of DBK Coin is not in compliance with the laws of the country in which the purchaser resides, the purchaser bears the risk of punitive action in consequence of any such violations.
Protocol Breakdown
Any form of breakdown, forking, abandonment, or malfunction of the Ethereum protocols could impair or destroy the functionality of DBK Coins.
Software Weakness
There is no guarantee that DBK Coins will work in an error-free, uninterrupted state. The presence of bugs, weaknesses, or vulnerabilities could lead to a complete or partial loss of DBK Coin.
Technical Risk Factors
Mining Attack
The dependence of DBK Coin and blockchain technology on a decentralized mining network poses an inherent risk that, should a successful mining attack be undertaken, the software computations essential to the blockchain might be compromised.
Wallet Risk
Participants' loss of access to a wallet storing DBK Coin will result in loss of access to the DBK Coins stored therein. A private key is necessary to control and dispose of tokens stored in your digital wallet.
Cybercrime
Cybercrime or unauthorized access to UAB DiamondBack LT systems may result in the loss, theft or inability to access tendered Ethereum. Cryptocurrency exchanges, wallets and the cryptocurrency Blockchain itself may suffer from hacking and fraud risks.
Regulatory Risk
Regulations affecting UAB DiamondBack LT and/or the participants are subject to change by the governance structure of relevant jurisdictions. Regulatory changes could result in loss or appropriation of DBK Coins.
More Risk Considerations
Risk of Hard-Fork
As the adoption of DBK Coins evolves, an upgrade to DBK Coins may be required (a hard-fork). If you decide not to participate in such upgrade, you may no longer be able to use your DBK Coins and any non-upgraded DBK Coins may lose their utility.
Risk of Uninsured Losses
Although the Diamonds will be insured, the DBK Coins themselves will be issued uninsured. In the event of loss of DBK Coins or loss of DBK Coins utility value, you have no recourse to any insurance, unless you have personally obtained private insurance.
Underbanking Risk
Certain banks may not provide banking services or may cut off banking services to businesses that provide cryptocurrency related services or accept cryptocurrencies as payment, which could damage the public's perception of cryptocurrencies and their utility.
Unanticipated Risks
Cryptographic tokens such as DBK Coins are a new and relatively untested technology. In addition to the risks set out in this section, there are other risks associated with your acquisition, storage, transfer and use of DBK Coins, including risks that cannot be foreseen.
Experience Requirements
PURCHASES OF DBK COINS SHOULD BE UNDERTAKEN ONLY BY INDIVIDUALS, ENTITIES, OR COMPANIES THAT HAVE SIGNIFICANT EXPERIENCE WITH, AND UNDERSTANDING OF, THE USAGE AND INTRICACIES OF CRYPTOGRAPHIC TOKENS, INCLUDING ETHEREUM TOKENS, AND BLOCKCHAIN BASED SOFTWARE SYSTEMS.
PURCHASERS SHOULD HAVE AN EXPERTISE AND EXPERIENCE WITH STORAGE AND TRANSMISSION MECHANISMS OF CRYPTOGRAPHIC TOKENS. THE COMPANY WILL NOT BE RESPONSIBLE IN ANY WAY FOR LOSS OF CRYPTOCURRENCY, ETHEREUM, DBK COINS OR ANY OTHER FUNDS RESULTING FROM ACTIONS TAKEN OR OMITTED BY PURCHASERS. IF YOU DO NOT HAVE RELEVANT EXPERIENCE OR EXPERTISE, THEN YOU SHOULD NOT PURCHASE DBK COINS.
YOUR PARTICIPATION IN DBK COIN SALE IS DEEMED AS YOUR ACKNOWLEDGMENT THAT YOU SATISFY THE REQUIREMENTS MENTIONED IN THIS PARAGRAPH.
UAB DiamondBack LT is subject to regulatory oversight and compliance with UAB DiamondBack LT's prerequisite customer due diligence protocols. Issuance applications may be refused by UAB DiamondBack LT in its own discretion, and UAB DiamondBack LT is not required or expected to give reasons for any such refusal.
Risk Factors
Loss of Purchase Price
Participation in UAB DiamondBack LT is subject to risk of loss of purchase price. Purchase of DBK Coin may not result in a valuable or usable token, and purchase of DBK Coin may result in partial or complete loss of purchase price. The user network can negate this risk.
Nascent Market
The development of Blockchain technology and cryptocurrency is in its early stage, any adverse development in the cryptocurrency or Blockchain market could adversely affect our business and results from operations.
Blockchain Adoption Risk
If Blockchain technology cannot gain wide market acceptance in society, there may not be strong market demand for our DBK Coin, which relies on Blockchain technology to digitize the diamond assets, perform peer-to peer transactions and ultimately will end up having an adverse effect on the acceptance and utility of the DBK Coin.
Cryptocurrency Adoption Risk
There is no assurance that usage of cryptocurrencies will continue to grow. As our business depends heavily on the public interest and acceptance of cryptocurrencies as a means of payment for goods and services, any lack of usage of, or fade in public interest for, cryptocurrencies may adversely affect DBK Coin.
Important Notes
Stableprice Payment Coin
DiamondBack (DBK) is a Stableprice payment coin. The value of DBK coins do not change. One advantage of owning DiamondBack is the ability to use DBKs for worldwide commerce and as a Stableprice coin for crypto trading.
Diamond Trust Reserve
What "asset-backed", "pegged", "benchmarked", "1 to 1 ratio', etc. simply means in regards to DiamondBack is for every 1 USD received for DBKs, 1 USD equivalent of wholesale diamond value is placed in the third-party diamond trust which is referred to the Diamond Trust or Diamond Trust Reserve.
No Redemption Guarantee
There is no intent or guarantee DiamondBack will buy your 1 DBK for 1 USD. There is also no intent or guarantee DiamondBack will not, as liquidity is built over time. DBKs are intended to be bought for the purpose of gaining DBK rewards and/or spending DBKs on the network at a static price of 1 USD each.
Simplicity and Transparency
We believe that providing clarity and transparency, as well as maintaining an eloquent simplicity, is why DiamondBack will succeed in ways no other company has thus far.