Tiberius Coin — The first ever crypto-financial hybrid
With every day, the technology is evolving, the devices become smarter, and it’s all made by metal. Thanks to the power of blockchain, the metal markets are unlocked to the retail investors. And today we are going to consider the Tiberius Coin project, which gives us many opportunities in metal area!
Tiberius Coin has been founded on 22 December 2017 for an infinite duration. It is based in Zug, Switzerland and it is regulated by Swiss law. It intends to bring us new technologies in blockchain area as well as to provide services of all kinds. Tiberius is metal, it is situated between cryptocurrencies and traditionally financial markets. It provides direct ownership of metal which is in stored by the holders. The metal is held and audited by warehouses which can deliver it to each one who owns it. Each Tiberius Coin is fungible due the basis on an identical and public basket of metal.
Each token is underlaying by metal which provides exposure our three strategic products:
• The technology metals growth story. Here we have copper and tin.
• The Electric Vehicle/EV play. Here we have cobalt, nickel and aluminium.
• Stability metals. Here we have gold and platinum.
Except to the other cryptocurrencies, Tiberius Coin can never hit zero, due the fact that tokens are minted only after the metal has been independently audited. This makes Tiberius Coin unique than other tokens. This basket exceeds over the medium term, as the realization of new technologies like robotics, drones, and actual technologies becomes more prevalent. Stability metals have been chosen to decrease the storage costs and volatility
Everyone wants to invest in something without any risk to reach the “zero”. There are a lot of opportunities now on the market because the technology is developing continuously. But all of them are very risky. Except for gold, the metal industry can have industrial uses and much more, it will always command intrinsic value. The Tiberius Coin will be listed under the ticker TCX, and will have an approximate value close to $0,70
Why Tiberius Coin?
Cryptocurriences don’t have a constant value, they are too volatile and highly correlated. The correlation reason is that it’s simply not enough fiat for all cryptocurriences when the prices drop. The metal markets instead, are large and liquid enough to resist any volatility, wherein offering a stable price floor which is still growing.
Tiberius Coin is more stable than other cryptocurrencies because its market price is less volatile and it can be drop only by a limited amount. Also, it is more secure because the underlying metal is always 100% collateralised and therefore a secure storage of wealth.
Who will use Tiberius Coin?
First of all, investors will use this coin due the fact that it is designed to have a price floor, and it means that it will never hit zero or be exposed to same risks as others cryptocurrencies.
Also, the T-coin solves a big problem of crypto market today, and I’m speaking about the fiat liquidity to crypto. So the T-coin is a great solution for holding family funds/offices, and a good investment for those who has less trust in crypto but at the same time, wants to try it. Investing in T-coin is also a good opportunity for metal traders or other corporates that sits on a lot of money and continue to consume metal.
Another advantage of investing in metal is that its price is increasing all the time. It’s better to hold metal than cash.
Everyone will be able to buy T-coin for almost as much the underlying metal can be sold for (this means the intrinsic value). When the price goes down, you can buy T-coin in order to obtain metal, and then to sold it at a higher value. For exchanging it to physical metal you will need to use Tiberius Coin app or website for the process of “cancelling” the token and which means the delivery of the underlying metal. The token will be destroyed and will thus be removed from circulation. The token holder will refuse to the ownership instead of receiving a physical material. All this process will be decentralized using smart-contracts. Each token that is cancelled will decrease the total number of tokens in circulation and the market cap of Tiberius Coin network, but keeping the number of tokens in-line with the amount of metal secured.
So the Tiberius has 2 possibilities:
• They can sell exchange-cleared products directly on liquid metal exchanges.
• Tiberius can instruct the delivery from vaults or warehouses of underlying metals.
For the cancellation process the user needs to have at least 1.000.000 tokens in order to receive the physical metal. Also, for confirmation of this process, it is required to pass a KYC process for confirming the identity of each person. After that, the 1.000.000 tokens will be pulled from the investor’s wallet and it will receive a global certificate, that makes him the direct owner of the metal. The owner of certificate can always go to a broker and to exchange it and request for selling it, such that he will receive the money in their bank. Also, there is a rule for all this process, and I’m speaking about a 2% fee that needs to be paid to the Tiberius Crypto AG in cash.
For sure there will be a warehouse fee and it’s about 2%-2.5% annually for storing metal. And it’s need for protecting the national value of your holdings (for example in case of inflation). But even with warehouse fee, there is more safe to hold metal than cash. The fee will be taken directly from the holders wallets through smart contracts, but only after the first 12 months of using this service, because the first year there is no any fee!
After the first 12 months after the ICO, there will be need to make a small fee in order to be economically feasible. Tiberius Coins will be collected and aggregated in a Tiberius Master Wallet which will be under control of Tiberius. T-coins will be traded for BTC, which will be sold for USD for paying that fee. Another interesting feature of this Master Wallet is that units of TCX can be directly converted into metal, and the metal into USD, which will be used then for finance of warehouse fee. And this will help to reinforce the price floor of TCX in line with the price of metal.
Who is Tiberius?
Tiberius is leading global products asset manager, mining operator and metal merchant trader, that was founded in 2005 in Zug, Switzerland. Then was the first actively managed fund of products from Europe, and till now they grew up to US$ 3bn in assets under management. For now, the cryptocurrencies are a big and natural extension of Tiberius’ core abilities.
Tiberius Coin is the cheapest way to acquire the exposure to that basket of metals, and it is also the cheapest competitor on the market. The token supply needs to correspond to the amount of metal held in the custody of Tiberius, this is why Tiberius needs to make sure while the metal leaves the warehouse, that tokens are destroyed. There is a lot of needs to be done in the background to guarantee that the coin supports this attributes. This leads to a cost structure, which in Tiberius case, looks like this:
• 3% for the Legal and Compliance
• 2.5% for the Liquidity Premium
• 1.5% for the Management Fees
• 1% for the Brokerage Fees (Metal Broker)
• 1% for the Exchange Fees (Metals Exchange)
• 2%-2.5% for the Warehouse Fees (First year will be for free)
More information about Tiberius cost structure can be found in the white paper.
Tiberius Coin in a nutshell:
When you buy T-coin you can say that you buy a physical metal. At the same time, the purchaser of metals instructs the Tiberius Coin to deposit the metal in the warehouse. After that, a special receipt is given by warehouse that shows the underlying products, and which are held in safe by TIC which replace all receipts with a global certificate. So like you can see, all this process is safe how much it is possible to be. Tiberius is a co-ownership that will ensure that all warehouse certificates will be delivered only to the rightful owner and also, it will create an uncertificated securities register.
The holder of T-coins will two exits: The first one is to exchange tokens to physical metal and the second is to sale. A holder can request from TIC the global certificate that reflects the actual number of products at the warehouse. This certificates can be amended for showing the actual numbers of products avaible. The terms condition of the Tiberius Coin says that request for delivery of physical metal can be made only with presenting a certain amount of Tiberius Coins.
TIC will also have the right to cancel a token if some rules from Terms and Conditions are violated. Here are a few of them:
• Tiberius Coin is used for illegal activities or involved in illegal activities if the current owner has not received it in good faith.
• Tiberius Coins have been repurchased by TIC with own funds in compliance with the terms and conditions of the Tiberius Coin.
• Changes in laws that will require TIC to cancel the token.
TIC has also the right to call off the initial coin if:
• No more than CHF 20 mio will be raised during the ICO.
• The most investors will be domiciled in the country with most restrictions for coin offerings.
• It will be impossible to realize the plans for Tiberius Coin due the fact that it is not attributable to TIC.
Tiberius Coin has chosen the Lykke exchange for trading their tokens. This decision was made due the fact that Lykke is also a Swiss-based blockchain-financial company with a great emphasis on regulatory compliance.
Our own blockchain:
After September 2019, Tiberius is going to use their own blockchain instead of Ethereum, this is their preferred long-term solution in order to granular recovery of warehouse fees. Once they have their own blockchain, they will decrease all TCX account balances on the blockchain level on creation of a new block. So when the new block is created, and it is about 24-48 hours, the balances will be drawn down at an appropriate rate as determined by our algorithm.
The Tiberius whitepaper and project itself isn’t addressed in particular to investors domiciled in the following countries: USA (incl. US persons), China, India, Vietnam, Indonesia, Kyrgyzstan, Thailand, Ecuador, Iceland, Morocco, Malaysia, Nepal, Bolivia, Bangladesh, Algeria and any other jurisdiction in which T-Coins are prohibited or affected by sanctions issued by the USA, such as sanctions related to Belarus, Burundi, Central African Republic, Cuba, Democratic Republic of Congo, Iran, Iraq, Lebanon, Libya, North Korea, Somalia, Sudan, South Sudan, Syria, Ukraine/Russia, Venezuela, Yemen, and Zimbabwe.
No information in the White Paper should be considered to be investment, business, legal, financial, tax, or technology advice regarding the T-Coin and the sale of T-Coin. Everyone needs consulting its own investment. You should consult with your own advisor regarding your legal, regulator, and tax position. Also, need to specify that T-Coin may be the target of malicious cyberattacks or may contain exploitable flaws in its underlying code, which may result in security breaches and the loss or theft of T-Coins. You need to understand all risks that you are suposed to.
In conclusion, Tiberius is a new project that brings us many opportunities in blockchain area, and also, gives us the possibility to become the owners of physical metal. Before investing in Tiberius Coin, you have to understand the high degree of risks that are here. I will request everyone to go through Tiberius white paper which has the goal of presentation of the T-Coin to potential acquirers of it. It is need for better understanding the project goal and to agree with all the risks that are presented.
Thank you for your attention and till next reviews!