Crypto Backed By Metals Offered By Swiss-Based Asset Management Firm Tiberiusbr>
Switzerland-based commodities fund Tiberius Group will be offering a new cryptocurrency backed by precious metals in a token sale set for October 1.
Founded in 2005, Tiberius Group is a diversified commodity investor and manager. It started as a pure commodity asset manager investing on behalf of institutional clients including public institutions, private pension funds, sovereign wealth funds and endowments. Since 2010, the company has made key principal investments in natural resource assets, established a metal merchant business and more recently made principal investments into commodity technology businesses. It currently manages around $350 million in assets.
The company is launching its own cryptocurrency, Tiberius Coin, which will be tied to the price of copper, aluminum, nickel, cobalt, tin, gold and platinum. The metals were chosen for their unique industrial applications to future technology and commodity growth sectors.
“Instead of underlying the digital currency with only one commodity, we have chosen a mix of technology metals, stability metals and electric vehicle metals,” said Giuseppe Rapallo, CEO at Tiberius Technology Ventures AG. “This will give the coin diversification, making it more stable and attractive for investors.”
The supply of Tiberius Coin will be based on demand, instead of having a fixed cap. However, supply will be limited by the underlying reserves of metals owned by Tiberius.
Rapallo said that Tiberius Coin will be completely compliant with Swiss regulations instead of being launched through an unregulated initial coin offering (ICO). He added it will be offered at about $0.70 and that trading will commence on Estonia-based crypto exchange LaToken, as it meets the necessary regulatory standards.
According to Adrian Ash, the research director at London-based BullionVault Ltd, other cryptocurrencies underpinned by metals have been attempted in the past, although “so far none of them have gained traction.”
“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,” Ash said.
Charles Hayter, founder of cryptocurrency data analysis firm Crypto Compare, argued that Tiberius Coin may have a higher chance of success beacause Tiberius is an established player in the metals industry.
“The problem has always been that the crypto provider has never had a solid reputation or there has been speculation about whether the underlying metals exist or are stored securely,” Hayter said. “It sounds like you’ve got that in this case.”