Announcing CryptoSlate Research — gain an analytical edge with in-depth crypto insight. Learn more.
·

Swiss Cryptocurrency Backed by Seven Precious Metals Aims to Attract Risk-Wary Investors

Swiss Cryptocurrency Backed by Seven Precious Metals Aims to Attract Risk-Wary Investors

Tiberius Group AG, a Swiss asset management company is launching a cryptocurrency backed by seven precious metals, in a first-such-instance. The company handles over $350 million in investor assets and is one of the largest equity funds in Switzerland.

Gold Crypto

As reported by Bloomberg on Sept. 27, the company will issue the aptly-branded Tiberius Coin later this year and places the initial price at $0.70. The token is complaint with Swiss law and shall be backed by copper, aluminum, nickel, cobalt, tin, gold, and platinum.

The team shall be led by Giuseppe Rapallo, the CEO of Tiberius Technology Venture, who stated the decision to back the token with seven metals is for diversification purposes, as well as hedging against risk in case a particular asset falls in price. In addition, the token is made more lucrative for investors.

Switzerland: Largest Stock Exchange’s Head Unsure of Crypto Trading, Bullish on ICOs & “Token Ecosystem”
Related: Swiss Startup Raises $103 Million to Build Cryptocurrency-Focused Bank

Coin supply will be based on supply and demand, instead of having a fixed cap. However, supply shall be limited by the underlying reserves of metals owned by Tiberius. Trading will commence on Estonia-based cryptocurrency exchange LaToken, as they offer relaxed clauses to list newer tokens and meet all minimum regulatory standards.

Meanwhile, other metal-based cryptocurrencies have been launched in the past to no substantial traction. But, in the economies of Dubai, Malaysia, and other Islamic regions, several tokens backed by gold and silver have been to moderate local success. Examples of these include OneGram and GoldCrypto, with the former boasting of a Shariah-compliant certification to apply to Islamic economies.

Not Everyone Impressed

Despite the innovative conceptualizations, industry observers express caution over gold and precious metal-backed cryptocurrencies launching in the market.

Adrian Ash, the research director of gold custodial BullionVault, expresses 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 continue to lure investors with various features to set themselves apart from other crypto assets–which are criticized for not being backed by real-world commodities.

Such a firm is Swiss physical commodities exchange Open Mineral, which announced in July 2018 its plans to develop a blockchain-based mineral trading system in partnership with Ethereum incubator ConsenSys Labs. At the time, the company stated its native blockchain seeks to “simplify the trading process, and increase efficiency and profitability.”

Cover Photo by Morgan Thompson on Unsplash

Filed Under: , Adoption
Shaurya Malwa

Post-mining his first bitcoins in 2012, there was no looking back for Shaurya Malwa. After graduating in business from the University of Wolverhampton, Shaurya ventured straight into the world of cryptocurrency and blockchain. Using a hard-hitting approach to article writing and crypto-trading, he finds his true self in the world of decentralized ideologies. When not writing, Shaurya builds his culinary skills and trades the big three cryptocurrencies.

View author profile

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.