Swiss-based Tiberius Group AG, an asset management company has debuted the cryptocurrency backed seven precious metals. It is one of the largest equity fund management company who handles more than $350 million of investor assets.
Bloomberg on Sept 27 revealed that the company has planned to issue some aptly branded Tiberius Coin with an initial price of $0.70, later this year. It will follow all the compliances of Swiss law and will be backed by copper, aluminum, nickel, cobalt, tin, gold, and platinum.
Giuseppe Rapallo, the CEO of Tiberius Technology Venture stated that this resolution would lead to back the token with seven metals. It will help to minimize the risk through hedging and will provide sites for diversification against market slump. Apart from that, it will be more lucrative for investors to withdraw their money anytime. Coin supply will depend on supply and demand. Initially, the token will be introduced, and trading will commence on Estonia-based cryptocurrency exchange LaToken. However, they will have minimum regulatory standards and relaxed clauses to list newer tokens.
The earlier moderate success of several tokens backed by gold and silver was recorded in Dubai, Malaysia, and other Islamic regions. Although, various other metal-based cryptocurrencies launched in the past failed due to lack of substantial traction. Example of these includes OneGram and GoldCrypto, with the former boasting of a Shariah-compliant certification to apply to Islamic economies.
In spite of innovative conceptualizations, gold and precious metal backed cryptocurrencies are more considerable in the market.
The research director of gold custodial BullionVault, Adrian Ash showed his concerns:
“They’re trying to solve a problem that doesn’t exist — all of this can be achieved without the additional cost of a distributed ledger.”
Cryptocurrency companies are offering various other opportunities to lure more investors so that they can keep them aloof from other crypto products which are criticized for not being backed by real-world commodities.