Switzerland-based commodities assets manager Tiberius Group AG has delayed the sale of its metals-backed cryptocurrency, Tiberius Coin, due to high fees from credit card companies, Bloomberg reported Oct. 9.The company announced its intention to issue a digital currency tied to the price of metals - copper, aluminum, nickel, cobalt, tin, gold and platinum - in late September.
Tiberius Group then explained that "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."
Now, the Swiss firm will reportedly delay the launch of Tiberius Coin due to "Unacceptably" high fees from credit card processing companies.
Per Tiberius' assessment, it will be unable to handle orders worth $15 million due to "Restrictions" put on credit cards.
"As of now, we are investing heavily in our platform, improving it and working with notable credit card processors to onboard new payment gateways for our client base to use. All investors who took part in the sale will have their money refunded within 30 days."
Credit card companies have previously shown some hesitation about working with cryptocurrency companies and digital asset trading.
In June, San-Francisco-based bank Wells Fargo announced that it will no longer allow its customers to purchase cryptocurrency using its credit cards.
The move was reportedly taken in order to avoid "Multiple risks" associated with cryptocurrency usage.
In February, Cointelegraph reported that customers at J.P. Morgan Chase, Bank of America, and Citigroup can no longer purchase cryptocurrencies with credit cards.
J.P. Morgan Chase said that it had discontinued the service "Due to the volatility and risk involved," while Citigroup stated it would review their policy as the crypto market develops.
Swiss Asset Management Firm Tiberius Group AG Delays Launch of Metals-Backed Token
Published on Oct 9, 2018
by Cointele | Published on Coinage
Coinage
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.