A Swiss-based asset management company is to launch a new digital asset, backed by the price of copper, aluminum, nickel, cobalt, tin, gold and platinum.
The Zug based company, Bullion Vault Ltd, which also trades commodities, follows in the footsteps of struggling Venezuela’s Petro, which is backed by crude oil reserves, but hopes this project will be far more successful than President Maduro’s iconic digital currency.
Recent research carried out by Reuters revealed that the Petro itself seems to have disappeared with no signs of users, investors or verifiable resources that back the crypto. However, the CEO of the Zug-based crypto company Giuseppe Rapallo is convinced of its future success, commenting that diversification will add to its stability, unlike the Petro:
“Instead of underlying the digital currency with only one commodity, we have chosen a mix of technology metals, stability metals, and electric vehicle metals. This will give the coin diversification, making it more stable and attractive for investors”
Christoph Eibl is the founder of the Tiberius Group, founded in 2005, with Philip Zimmermann, as Chief Scientist and Security Officer of the company. The coin which will be known as “Tiberius” will be powered by blockchain technology, offering a variety of opt it to be used as a virtual currency and payment of utilities. The company has suggested that it will be possible to convert coins into commodities such as gold and platinum, but that such transactions will incur fees, as commodities are traded by the ton rather than small amounts.
However, Adrian Ash research director at Bullion Vault Ltd doesn’t share Rapallo’s optimism, suggesting that several companies have made similar commodity-backed moves to link coins in this way, most of them unsuccessful:
“There are dozens of firms who launched stablecoins linked to metals, and so far none of them have gained any traction,” he said. “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.”
The coin is set for its launch next week on LATOKEN, an Estonian based cryptocurrency exchange with company’s CEO maintaining he has every faith in the credibility of that platform’s adherence to Switzerland exacting regulatory standards.
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