That the Swiss are exceptional bankers was proven again on Thursday. Fiat-currency bank SwissQuote permitted an artificial diamond producing firm to offer Initial Coin Offerings (ICOs) on its platform to raise fresh capital to fund the purchase of new equipment.
The bank has used its website to attract customers along with educational information on “how to finance a start-up with an ICO.” The banks also advertised the exclusive pre-sale of the tokens: 10% bonus along with ‘one’ free tokens for every ten tokens the investor purchase. The promotional offer is limited to the “first CHF 4’000’000 contributions only,” the website quotes. The Public ICO will begin only in next year, January 2019.
LakeDiamond and why is Swissquote backing it
At the heart of the unusual offer by the Swiss bank is the Swiss company – LakeDiamond. The company has been using cutting-edge technology to manufacture ultra-pure diamond using reactors useful especially for high-tech industrial purposes. The products by the LakeDiamond’s reactors are of high net value, and the company now needs to expand its production with new reactors and will also focus on improving production capacity.
The token that Lake Diamond will issue is called the LakeDiamond token (LKD) and will be based on blockchain technology. The token will provide “right of use” for growing diamonds and will also define the amount of time. The tokens will allow the first-time payment tokens for the production of these physical assets.
The token will have a value equivalent to “one minute of growth reactor operating time. It produces lab-grown diamonds. One minute is the smallest possible unit, so the tokens are non-divisible past this point. If a diamond plate takes 180.5 minutes to grow, it will consume 181 LKD.”
Currently, the LKD tokens are priced at 50 cents each. The supply of these tokens will be at 6.8 million. It can also be of use to the system for utility purposes.
SwissQuote has allowed the company to debut an ICO since it believes that the company has been following ‘ethics.’ The earlier round of abuse witnessed in diamond mining companies has been the backdrop for LakeDiamond.
Good Investment Opportunity
SwissQuote believes that this is an excellent investment opportunity and will benefit its partners as well. Hence, traditional banks are willing to explore new age economics in Switzerland. This is because of the rich banking culture of the country which allows executives of these banks to consider new age products and services and realign for their clients.
Their focus is on offering exclusive services, backed by their confidential services standards. The controversy concerning cryptocurrencies is their legal tender. Since the general condition in Switzerland is favorable in exploring the use of these non-fiats, the use of ICOs has been on the increase in this Alpine country.
Hence, when SwissQuote proposes to offer ICOs to its clientele, it is a next step in reiterating the traditional banking system which remains oriented to providing its clients the products and services they demand and will achieve a profit from. There is no question of considering ICOs as illegal tender in this case, and hence SwissQuote has been exceptional in serving its clientele.
