Tiberius has concluded all the necessary plans to launch a virtual currency with the backing of a basket of seven metals. Indeed, this coin will join a list of stablecoins that have launched recently. Ideally, cryptocurrencies rely on a pegged limit of supply as the basis of their value. However, the introduction of exchange tokens, such as Binance’s BNB, changed that common belief. BNB brought about the disparity as it functions based on use case. Further, Binance promised to reduce the supply of BNB over time. As a result, the utility frenzy of Initial Coin Offerings in 2017 opened a flood of cryptocurrencies that have use case pegging.
Ever since Bitcoin (BTC) launched in 2009, volatility is one misery that has refused to detach itself from the preeminent cryptocurrency. Apart from Bitcoin suffering in the cold hands of volatility, the altcoins have also had their fair shares. This explains the arrival of stablecoins, which are coins with real-world asset backing. Yes, they came into the crypto-sphere to vanquish volatility. The first stablecoin to hit the internet was Tether (USDT), which has USD-backing. This stablecoin became infamous for a number of reasons, including the questionable Term 3 (though it was later amended).
Looking Beyond Tether
No doubt, the Tether and Bitfinex connection, as well as to their refusal to accept requests for audit, have become a cause for concern for the cryptocurrency community. For some months now, Tether has witnessed a spate of stablecoins making their way into the cryptocurrency world. The notable ones among them are the Gemini Dollar (GUSD), True USD (TUSD), exchange-backed Terra, Circle’s USDC, and now the latest newcomer – Tiberius.
Aside from the stablecoins with fiat currency pegging, there have been stablecoins with commodity-backing. For instance, there is Venezuela’s Petro, which supposedly has the backing of Venezuelan sweet crude oil. Also, OneGram and HelloGold with gold-backing. As the next evolutionary step, Tiberius launched to offer the world a cryptocurrency that transcends cryptographic security.
Looking at Tiberius, it is a Swiss-based commodity trader and asset manager. It is looking to develop a cryptocurrency that has the backing of an assortment of highly sought-after metals. These metals are gold, platinum, copper, cobalt, aluminum, nickel, and tin. Called crypto-financial hybrid, Tiberius Coin aims to give retail investors easy exposure to commodity trading.
The plans for the ICO (called Initial Metal Sales) are ongoing. The coin represents the following: 5 grams of tin, 25 grams of copper, and 6 grams of nickel. Other breakdowns include one gram of cobalt, 3 milligrams of gold, a one-and-a-half gram of platinum and 25 grams of aluminum. Make no mistake, Tiberius coins are mere certificates of metal ownership taking advantage of the burgeoning cryptocurrency frenzy. The industry will see what it has to offer in the coming months.
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