Back in 2019, UniSocks launched a limited edition pair of socks that utilized a bonding curve as a pricing mechanism. To facilitate trading, Uniswap created an ERC-20 token, called SOCKS, to represent a pair of UniSocks. Hence, the token could easily be traded on Uniswap or redeemed to receive the physical pair of SOCKS.
Where Uniswap tokenized socks, Diamond Hands tokenized Bitcoin-inspired gold rings with its limited collection. The ideology behind a tokenized item goes beyond selling a pair of socks or a gold ring. Instead, it follows the sales pattern of bonding curves. However, real-world asset tokenization is what led to the creation of NFTs.
Non-fungible tokens have become extremely popular these days due to their capability of bringing tangible goods such as photos, socks, jewelry, and music, into the crypto world. In this regard, a fungible asset generally refers to an asset that can be interchanged, for example, money. However, a non-fungible asset cannot be exchanged with something else as it has unique properties.
NFTs are assigned to one-of-a-kind items such as Diamond Hands rings and have an exclusive value that cannot be redeemed for something else. As such, NFTs are a great way to add value to already precious items and make their ownership permanent, as all NFTs are registered on the blockchain.
Parallelism between Diamond Hands and UniSocks
When Uniswap announced dynamically priced, limited edition socks represented on the Ethereum Blockchain by redeemable ERC-20 tokens, the collection included 500 socks, and this supply was non-fluid.
The wow factor of these socks, yet, was their sales mechanism. Unlike common NFTs, UniSocks uses dynamic pricing in which the cost of SOCKS increases after every purchase. This pricing mechanism works on a bonding curve that could be applied to any limited edition, such as the Diamond Hands collection.
Following the launch, the SOCKS token was trading at $12,625, but according to the bonding curve, the token price increased dynamically, reaching $45,862.64. Today, SOCKS, the token of UniSocks, is currently tradable in pairs such as DAI/SOCKS and USDC/SOCKS in the UniSwap pool.
Diamond Hands, instead of selling rings at a fixed price, allows the second market to determine the value with a dynamic pricing mechanism. In this method, the bonding curve becomes its supply function so that every time a ring is bought, the token’s price increases by 6%.
The basic concept of a bonding curve is quite simple. In accordance with the curve, the price of the token is determined by its supply. As the number of distributed tokens increases, so does the price.
In this system, the early adopters earn profits as the price increases after every purchase, thus incentivizing users to gain early access. As IBWT is an ERC-20 token, it can be used like other ERC-20 tokens and is tradable on the Uniswap V3.0 protocol.
Marketplaces like Zora, Foundation, and Saint Frame DAO use the exact bonding curve mechanism and are listed on the Uniswap V3.0 protocol.
In Bitcoin We Trust Token
When a Diamond Hands ring holder wants to swap the token for a physical diamond ring, the token is burned to reduce the number in circulation. All of these factors merged to create an exclusive collection that every crypto-enthusiast will love to have in their possession.
DESIRED is a jewelry brand that aims to promote crypto adoption and jewels significance in the present day. With Roman Burch, a premium jewelry expert, and Yevgeniy Sarayev, a crypto expert, as founders, Diamond Hands is destined to become a leading platform in the industry.
Diamond Hands is a limited collection from DESIRED created to honor Bitcoin and encourage the adoption of exclusive high-quality jewelry. As there are not many platforms that operate on the bonding curve mechanism, Diamond Hands has a unique advantage over similar NFT platforms.