Switzerland-based Tiberius launched on Oct. 1 a new crypto that is fully-backed and exchangeable for a basket of precious metals that include gold, platinum, copper, aluminum, nickel, cobalt and tin. Tiberius Coin gives investors as well as industrial companies access to physical metals as part of their investment, risk management and even operational strategies.
The availability of Tiberius Coins will be limited to the actual metals in storage which fully back the tokenized asset. It makes its debut under Swiss regulations at a $0.70 price per coin. Investors will need a minimum transaction size of $10,000 in order to exchange the coin for metals.
Diversifying Through Metals
The innovative token enables investors to diversify their portfolio by including hard assets that have sustainable value, which could make sense in high-inflation environments such as Venezuela, Argentina, Turkey, Libya, and the Philippines, to name a few. It could also appeal to Asian investors who are nervous about the brewing trade war between the U.S. and China, as well as, investors who foresee a devaluing U.S. dollar.
For operating companies, it may make sense as a way to guarantee a limited supply of physical metals. The management team said that Tiberius will record transactions on the blockchain. In the future, it will also let token holders pay for goods and services with Tiberius Coin, per Sept. 27 Bloomberg report.
That means such trades can resemble barter systems from past ages — trading merchandise for commodity-metals. As the saying goes, the more things change the more they stay the same.
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Basket Of Metal Money
The underlying basket of metals is composed of 25% copper, 19.5% gold, 15.8% tin, 13% nickel, 11% cobalt, 8.7% aluminum and 6.5% platinum. Estonia-based LATOKEN will list Tiberius Coin the week of Oct. 1.
In the ancient world, Tiberius was a Roman emperor who lived in the early 1st century and succeeded the great Augustus Caesar.
Switzerland has long been criticized for hiding ill-gotten wealth deposited by dictators, criminals and other sources of dirty money. In the age of cryptocurrencies, Swiss authorities are not restricting privately-issued new forms of money.
Private minters are not without precedent. In the 19th century, private issuers of money were sanctioned by the U.S. government mostly because the government could not reliably deliver gold and paper notes across the continent to the Wild West. But these private money minters — some of whom became extremely successful in managing monetary systems in the frontiers — were outlawed after a few years, returning money monopoly back to the government.
Last week, diamond-backed CARAT token made its debut
on Taiwan exchange Hotbit. Israel-based Carats.io purchased $120 million worth of diamonds to physically guarantee the commodity-based crypto. The CARAT token is expected to increase liquidity and improve efficiency in the $13 billion global diamond industry where two-thirds of supplies come from Africa.
In mid-September, Switzerland-based Eidoo launched an ERC-20 token (Ekon coin) whose price is tied to gold. The Ekon is redeemable for one gram of 99.9 percent fine gold. The precious metals are stored in vaults and audited every 90 days.
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