D1 COIN WHITEPAPER September 29, 2017 Ver. 0.9 For further ination, please contact Hogi Hyun 11 Beach Road, 06-01 Singapore 189675 Phone 65 9630 8459 E-mail infod1coin.io WHITE PAPER | D1 1 | P a g e This document does not constitute or part of any offer, invitation, or solicitation of any investment and does not pertain in any way to an offering, invitation, or purchase of securities in any jurisdiction. This document has not been or will be ted to, registered with, reviewed or verified by any regulatory authority in any jurisdiction 1. INTRODUCTION ................................................................................................................................ 3 2. D1 COIN TECHNOLOGY ............................................................................................................. 5 D1 Coin ................................................................................................................................................ 5 Technology .......................................................................................................................................... 6 3. D1 DIAMONDS ................................................................................................................................... 7 Diamond Description .......................................................................................................................... 7 Diamond Sourcing .............................................................................................................................. 7 Diamond Custody ............................................................................................................................... 8 4. OPERATIONS .................................................................................................................................... 9 D1 Foundation ................................................................................................................................... 10 D1 Mint ............................................................................................................................................... 10 D1 Agent ............................................................................................................................................ 11 D1 Coin – Diamond Exchange ....................................................................................................... 11 For Users ........................................................................................................................................... 13 For Merchants ................................................................................................................................... 13 For Exchanges .................................................................................................................................. 13 Future Developments ....................................................................................................................... 13 6. DIAMOND INDUSTRY .................................................................................................................... 15 Diamond Value Chain ...................................................................................................................... 15 Diamond Price Trends ..................................................................................................................... 16 7. TEAM ................................................................................................................................................. 18 8. CONCLUSION .................................................................................................................................. 20 9. APPENDIX 1 ..................................................................................................................................... 21 WHITE PAPER | D1 2 | P a g e This document does not constitute or part of any offer, invitation, or solicitation of any investment and does not pertain in any way to an offering, invitation, or purchase of securities in any jurisdiction. This document has not been or will be ted to, registered with, reviewed or verified by any regulatory authority in any jurisdiction DISCLAIMER This document is provided to you solely for ination purposes and is intended for your use only. The ination herein does not purport to be exhaustive or to contain all the ination necessary to make an ined decision. You should consult with professional advisers and per your own independent investigation and analysis and rely upon assessing any investment solely upon such investigation. The ination is not a substitute for your independent investigation and analysis and neither the ination, nor any part of it, or the fact of its distribution, shall the basis of, or be relied upon in connection with, any investments. Any estimates, forecasts, projections, opinions or other ination necessarily involve elements of subjective judgment and analysis. You should satisfy yourself as to such matters by further investigation and make your own investigation of any applicable legal, tax, accounting conditions. The assumptions in this document may be modified from time to time to reflect changed circumstances. In particular, these assumptions are subject to, and will be superseded by, final documentation in respect of the issue of the applicable coins. Furthermore this document may contain data that is current as of its publication date and after publication may no longer be current or complete. Any scenario analysis is based upon assumptions about future market values which may prove to be different from such assumptions. No representations or warranty is made that any perance or return indicated will be achieved in the future. This document does not constitute an offer of commitment, a solicitation of an offer of commitment, or any advice or recommendation to enter into or conclude a transaction whether on the indicative terms shown or otherwise. The terms of the coin described in these materials are subject to change. WHITE PAPER | D1 3 | P a g e This document does not constitute or part of any offer, invitation, or solicitation of any investment and does not pertain in any way to an offering, invitation, or purchase of securities in any jurisdiction. This document has not been or will be ted to, registered with, reviewed or verified by any regulatory authority in any jurisdiction 1. INTRODUCTION Cryptocurrencies and the underlying blockchain technology are increasingly popular amongst individuals, financial institutions and governments, but many still think of cryptocurrencies as objects of speculation. Being subject to potentially huge price corrections, most cryptocurrencies are a poor store of value and means of exchange, giving rise to a need for a more secure alternative. D1 Coin is designed to address this need, combining the convenience of digital currencies with the stability of traditional assets. D1 Coin is a diamond-backed cryptocurrency, with each D1 coin pegged to the value of a fraction of an authentic, natural diamond, as determined by the proprietary pricing algorithm, D1 Matrix see appendix 1. Diamonds are an ideal asset backing for a coin since they are rare, taking a billion years to develop, have several millennia of history as a recognized store of value, and are small and therefore easily stored and transported. Diamonds will be sourced by the D1 Agent, which will adopt a strict approach to diamond sourcing, with all diamonds being obtained from an authorized supplier a “D1 Diamond Supplier”. Each diamond must have an accompanying Gemological Institute of America GIA certification. The initial supply will be procured by Diamundi Pte Ltd, Singapore. This supply is to be obtained from world leading diamond producers, such as Alrosa, and the top diamond polishers, such as KGK Group and Kristall Smolensk. Diamonds will be stored in secured and insured vaults in Singapore, Switzerland, and select global locations with established logistics and storage specialists such as Brinks and Malca-Amit, and will be overseen by D1 Foundation. Users may at any point in time convert their D1 Coins to diamonds at a ratio determined by D1 Matrix, by selecting specific diamonds on the D1 website and arrange with D1 Agent for delivery or collection. Users who own D1 Coins may use them for a variety of purposes payments, trading and investing. By being pegged to a fixed amount of investment-grade diamonds, D1 Coin aims to function as a convenient digital currency with limited amounts of speculative trading by having an intrinsic value derived from its asset-backing. The underlying blockchain technology for D1 Coin is built on the Ethereum blockchain. Transactions made using D1 Coins will be validated using the Proof of Work algorithm, in which miners are rewarded with coins and/or transaction fees. Understanding the security risks of WHITE PAPER | D1 4 | P a g e This document does not constitute or part of any offer, invitation, or solicitation of any investment and does not pertain in any way to an offering, invitation, or purchase of securities in any jurisdiction. This document has not been or will be ted to, registered with, reviewed or verified by any regulatory authority in any jurisdiction blockchain technology, D1 Foundation complements the in-house team of software engineers with multiple third-party cybersecurity firms to maintain a spotless track record on security. To realize its vision of making D1 Coin the globally-trusted, principal diamond-backed cryptocurrency, the core management team at D1 Foundation comprises of professionals with extensive working experience. D1 Foundation is an international, apolitical and transparent non-profit enterprise registered in Switzerland. WHITE PAPER | D1 5 | P a g e This document does not constitute or part of any offer, invitation, or solicitation of any investment and does not pertain in any way to an offering, invitation, or purchase of securities in any jurisdiction. This document has not been or will be ted to, registered with, reviewed or verified by any regulatory authority in any jurisdiction 2. D1 COIN TECHNOLOGY D1 Coin The D1 Coin is a virtual currency built on the Ethereum blockchain. The goal for D1 Coin is to be a top cryptocurrency on established cryptocurrency exchanges and lead the market by trading volume. With the value of the D1 Coin being a function of not just market forces but also the value of natural diamonds, users who purchase D1 Coins will be protected with a more stable price. In addition to listing on exchanges, D1 Coins are exchangeable for investment-grade diamonds, giving D1 Coin high liquidity, therefore benefitting users with a wide range of uses. Each D1 Coin backed by 1/1000th of a diamond of the following parameters, as certified by the Gemological Institute of America “GIA” round brilliant shape, 1 carat, color F, excellent cut, VS1 clarity. For every diamond deposited into the vault, a corresponding number of D1 Coins will be minted according to the D1 Matrix. These D1 Coins are then sold by the D1 Mint via D1 Agent to buyers in the market, in exchange for either fiat currencies or cryptocurrencies. D1 Coin will be listed on major cryptocurrency exchanges such as Poloniex, Bitfinex, Bitstamp, bitFlyer, KCOIN, Voskhod and others. D1 Foundation will constantly review major and upcoming exchanges, partnering with these to increase the liquidity of D1 Coin worldwide. The key advantage of the D1 Coin compared to major cryptocurrencies not backed by assets is that the price of D1 Coin is a function of both the value of underlying diamonds as well as market demand. Every D1 Coin is the same and therefore fungible; D1 Coins give the owner equal rights to select diamonds and redeem for diamonds as priced by the D1 Matrix. Coin redemption may be done at any time. Upon a D1 Coin redemption, the D1 Coin owner selects diamonds with a price valued in D1 coins and the diamonds are moved out of the vault and delivered to the D1 Coin owner, while the corresponding D1 Coins are removed from the ecosystem “burnt”. Beyond the central concept of the D1 Coin as a store of value and a medium for transactions, a suite of applications will be created for the D1 ecosystem. WHITE PAPER | D1 6 | P a g e This document does not constitute or part of any offer, invitation, or solicitation of any investment and does not pertain in any way to an offering, invitation, or purchase of securities in any jurisdiction. This document has not been or will be ted to, registered with, reviewed or verified by any regulatory authority in any jurisdiction Technology Blockchain technology was chosen as the plat to digitize physical diamonds, because transactions through cryptocurrency are fast and divisible, presenting a solution to diamonds being an illiquid asset. Through D1 Coins owners can effectively purchase fractional parts of a diamond. Furthermore, blockchain technology will grant D1 Coin users’ greater privacy, security and offer lower transaction fees. D1 Coin is built on Ethereum blockchain ERC-20 standard, which allows for the creation of customized digital assets and currencies. WHITE PAPER | D1 7 | P a g e This document does not constitute or part of any offer, invitation, or solicitation of any investment and does not pertain in any way to an offering, invitation, or purchase of securities in any jurisdiction. This document has not been or will be ted to, registered with, reviewed or verified by any regulatory authority in any jurisdiction 3. D1 DIAMONDS Diamond Description Every diamond supplied by D1 Diamond Supplier will be checked by professionals for compliance with its characteristics as listed in the accompanying GIA certification. Generally, the range for the carats of diamonds sourced is 0.3 to 6.0. In addition, D1 Agent shall, in due time, establish a Unique Diamonds Acquisition UDA group, which will combine mathematical analytics and market intelligence to determine the appropriate acquisition price of unique diamonds. These diamonds will be quantified in D1 Coins on a cost-plus basis. Diamond Sourcing Diamonds will be sourced by D1 Agent from D1 Diamond Suppliers, who are subject to stringent requirements. A D1 Diamond Supplier must be an established party in the diamond industry with relevant credentials, and maintain this standing throughout its tenure as a D1 Diamond Supplier. All diamonds sourced, regardless of characteristics or supplier, must have accompanying GIA certification. There will be a clear protocol for the verification of every diamond, including laser marking, in order to eliminate the possibilit