LAKEDIAMOND’S ICO: A DIAMOND IN THE ROUGH

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Publication Date:
November 05, 2020

Industry:

Source:
IMD

LakeDiamond is a company founded in 2015 in Yverdon, close to Geva, in Switzerland. Its goal was to levege an industrialized method of producing high-purity diamonds through a process called “micro-wave chemical vapor deposition” (CVD). Such diamonds are much purer than diamonds obtained through mining, allowing for novel industrial uses for diamonds, such as in watchmaking or in developing military applications. An initial funding round allowed LakeDiamond to demonstte its ability to grow such diamonds in an industrial reaor. In 2017, LakeDiamond’s founder Pascal Gallo started seeking new funding to scale up the opetion. At the same time, the hype around blockchains had started to drive a surge in startup funding through Initial Coin Offerings (ICO). As Gallo was reluant to dilute his ownership and control over the vture, he decided to ise the money needed for LakeDiamond’s expansion through an ICO. Despite significant press covege regarding blockchains, ICOs remained at the time relatively niche investmts. Therefore, to target a wider base of investors, Gallo partnered with Swissquote, a promint Swiss online k that was at the forefront in offering to layman investors access to crypto-currcies. The ICO did ise sufficit funds for new reaors to be purchases and produion to start. However, LakeDiamond’s sales never really picked up afterw and by early 2020 the company was filing for kruptcy. Fmed from the perspeive of a small investor assessing the opportunity of investing in LakeDiamond’s ICO, the case is based on publicly released information by the company, and especially on its ICO. Extsive interviews with ICO experts who assessed the LakeDiamond at the time were also condued.

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LAKEDIAMOND’S ICO: A DIAMOND IN THE ROUGH


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