NFT Solutions to the Financial World
Transforming Non-Fungible Assets to Tradable Asset Class
demo environment
AFP focuses on transforming non-fungible assets into a financial tradable asset class, starting with diamonds. AFP, a creator of sophisticated financial products, combines a proprietary AI algorithm with Blockchain technology to build diamond-based financial products. AFP developed a digital Diamond Commodities Exchange, a spot price feed, and a global custodianship operation.
AFP Diamonds Exchange
The building block for diamonds Exchange Traded Fund
For the first time in history, diamonds can be traded like commodities from any other financial asset class. AFP allows APs, Market Makers, Index Arb traders, Commodity traders and Private Investors to easily and securely invest in single diamonds or create and redeem diamond buckets while enabling diamond holders to effortlessly liquidate their assets. Using innovative tools and Blockchain technology, AFP Diamonds Exchange has overcome the obstacles that have prevented diamonds from becoming a tradable asset class: transparency, liquidity, and standardization. becoming a tradable asset class: transparency, liquidity, and standardization.
Fair Value, Diamond Price Discovery
The AFP Diamonds Exchange powered by the DPD, Diamonds Price Discovery AI Algorithm, analyses multiple data points and enable AP’s, market makers, Index Arb traders and Commodity traders to invest in market value without being a diamoneers.
By making diamond appraisal valuations transparent and coherent, the ‘Fair Value %’ calculation had removed the most significant obstacle preventing diamond from becoming a viable asset class.
How Does AFP Diamonds Exchange Work?
AFP Diamonds Exchange connects diamond dealers and private diamond holders with financial market players, Authorized Participants & Market Makers, and with private investors who want to diversify their holdings.
The platform offers easy-to-implement investment options, so you can buy/sell diamonds with confidence, without the need for specialized diamond industry expertise.
NFT
- NFT, non-fungible token
- NFT is a unit of data stored on a digital ledger, blockchain, which can be sold and traded.
- The NFT is a digital and unique representation of an under-line asset.
- NFTs are not mutually interchangeable, hence, they are not-fungible.
- Each NFT may represent a different underlying asset and thus have a different value.
- Ownership of the NFT can be associated with a license to use the underlying digital asset.
- The most exciting possibility for NFTs lies in the creation of new markets and forms of investment.
- AFP uses NFT to represent a physical asset in a digital format. The digital format enables one to trade the asset and to exchange ownership.
Fungible versus Non-Fungible
- Fungibility is the ability of a good or asset to be readily interchanged for another of like kind
- Like goods and assets that are not interchangeable, such as owned cars and houses, are non-fungible.
- Money is a prime example of something fungible, where a $1 bill is easily convertible into four quarters or ten dimes, etc.
- Assets like diamonds, land, or baseball cards are not fungible because each unit has unique qualities that add or subtract value.
- Gold is generally considered fungible (one gold ounce is equivalent to another gold ounce), though in some cases, it is not. The Federal Reserve Bank of New York offers gold custody services to central banks and governments around the world by storing gold bars in its underground vault. All of the gold bars deposited into the vault are weighed with precision, and the refiner and purity markings on the individual bars are inspected to confirm they match the depositor instruction sheets. All of this is carefully monitored and recorded, and since the exact bars deposited to the New York Fed are the exact ones returned upon withdrawal, these types of gold deposits are not considered fungible.
Market
$90B
Yearly Diamonds Market Value
80%
The gold market, as a comparison, is 80% financial products vs 20% jewelry and industry
$500B
The public currently holds between $1-3 Trillion of diamonds without profitable liquidation channels
1%
Diamonds: 1% financial products vs 99% jewellery and industry
Team
The AFP team is comprised of technology experts, financial market professionals and diamond industry veterans; with broad knowledge and extensive experience in Blockchain technology, global capital markets, financial products and trading platforms.