Frequently Asked Questions
Yes. If you don’t want to pay in crypto, and/or don’t wish to hold your diamond as a tokenized asset on the blockchain, you don’t need to. In that case we recommend you pay by bank wire, and have the diamond itself—with accompanying documentation—shipped to you directly. There are other options as well. Contact Icecap for more information.
Previously, if you bought a $12,000 diamond, you might have been able to sell it for $6,000. With Icecap, that same diamond could be bought as a token for as low as $10,500, and you could expect to sell it for at least $9,500.
Historically, the large spread comes from having to buy at a retail price level, and sell at a sub-wholesale (liquidation) price—which will typically result in a buy/sell spread of 50% to 60%. In contrast, Icecap’s tokens are listed only 10% above wholesale. If a token is sold to another investor it will likely be at this same price level, with the only cost being OpenSea’s 1% exchange fee. In addition, Icecap always provides a bid on every tokenized diamond, which is approximately 5% below wholesale. Thus, an investor can always make an immediate sale by accepting this bid and incurring a 10% spread between buying and selling (+/- any underlying price movement in diamonds themselves.)
Icecap is able to do this by only trading in investment-grade diamonds that can be bought “sight unseen”. That, plus our blockchain-based approach reduces friction and costs for all parties.
Yes it does. That’s why you may want to redeem the token and not leave it in the vault. On the other hand, if you don’t need/want the diamond for adornment in the meantime, and don’t expect to need to flee with your wealth any time soon, leaving it in place minimizes costs, and makes it easier to sell when you’re ready to cash-out.
To re-tokenize, we charge only $85. This means you can easily redeem the diamond, enjoy it for as long as you wish, and then re-tokenize for a small fee when/if you wish to sell on Opensea or elsewhere.
See our Minimum Requirements sheet.
Short version: GIA grading report, 0.70 carat and above, I color and above, VS1 and above and round shape, triple excellent cut grade. Other criteria exist as well.
Good question, and that trust is at the heart of our business. Two answers:
- Icecap brings together some of the most well known, and reputable, names in both the diamond and crypto industries. See the question below (“Who are the people behind Icecap?”) for details.
- You don’t need to trust us. You can redeem your diamond at anytime, either in person, or by having it sent to you. If you ever wish to tokenize it again, you can do so for a small service fee.
The father/son team of Jacques and Erik Voorhees are extremely well known in the diamond industry and crypto space respectively. (Jacques is founder and CEO of Icecap. Erik is an investor and advisor.) Other participants include investor Jeff Fischer, one of the most reputable diamond dealers in New York and Chairman Emeritus of the Jewelers Vigilance Committee (the jewelry industry’s ethics watchdog group), investor and Chairman Bill Boyajian, 20 year past president of the prestigious Gemological Institute of America—which invented diamond grading itself; and service provider to Icecap Don Palmieri and GCAL (the gold standard in verifying GIA grading reports).
On any crypto exchange that supports the ERC721 (Non Fungible Token) standard. At the present time that includes opensea.io and pixura.io Look for many others soon.
Sales tax, if applicable, is charged when the token is redeemed.
No. There are no refund privileges in trading crypto-tokens, anymore than there are when buying stocks, bonds, or gold bullion for investment. If you want these kinds of services in the purchase of a diamond, you should be purchasing from a retail jewelry store. (Plus, see next question.)
Certainly, if you don’t need the services provided by a jewelry retailer, such as in-store comparison shopping, custom jewelry design, return privileges, gemological advice, etc.
To find a local retail jeweler, consider the websites of these professional jewelers’ organizations: www.ags.org, www.ijo.com , www.polygon.net, www.jewelers.org
The diamond the Token is connected to accrues storage fees each year (currently $10 per year), from the time the Token was first purchased from Icecap. These storage fees must be paid before the diamond is released from storage.
Anyone considering buying a Token should check the metadata on that Token, to see total fees currently accrued if any. Anyone who owns a Token may pay off the storage fees at anytime, by contacting Icecap, but is under no obligation to do so.
Provisional tokens represent diamonds that are not yet verified, but could be at request. These diamonds typically have exceptional qualities, such as size or shape, that prevent them from going through our normal diamond-tokenization process.