Blockchain Startup Diamond Standard Raises $30M to Fund Expansion

In a Series A fundraising round co-led by venture capital firms Left Lane and Horizon Kinetics, Diamond Standard raised $30 million. According to a release, Diamond Standard plans to utilize the additional capital to increase its production capacity and quicken the distribution of its tokenized items. The business stated that more production capacity is required to accommodate the rapidly expanding investor demand due to the recent introduction of the Diamond Standard Bar and Diamond Standard Fund. The company further stated, “The firm is hiring aggressively and building a new bar assembly facility in collaboration with the International Gemological Institute.” Difficulty In Luring Investors Despite its attractiveness for jewelry, the diamond business has historically had difficulties luring investors because there is no consistent mechanism for determining the worth of the priceless gem. The diamond commodity creator aims to change this by creating standardized tokens based on Ethereum that are exchangeable and backed by natural diamonds. Due to its lack of correlation to the returns of gold, equities, or bonds, the blockchain business also perceives the new asset class as an alternative investment for anybody wanting a store of value in a time of rapid inflation. Diamond Standard’s founder and CEO, Cormac Kinney, stated that investors need a new uncorrelated asset class and that this investment will enable us to boost capaci...