Tiberius Group AG, commodities assets manager in Switzerland, postponed the sales of Tiberius Coin, its metals-backed cryptocurrency, because of high fees from credit card companies.
Tiberius Coin price is closely related to the price of metals – copper, aluminum, nickel, cobalt, tin, gold and platinum and it was about to be introduced to the public late September. Tiberius Group described that it tried to own coin diversification for stability and attracting investors by choosing a mix of technology metals, stability metals and electric vehicle metals instead of underlying the digital currency with only one commodity.
The Swiss firm will postpone the launch of Tiberius Coin because of unbearably high fees from credit card processing companies. Specifically, Tiberius cannot manage orders worth $15 million due to the restrictions. It mentioned that the company is investing hugely on the platform in order to update and find a way to deal with notable credit card processors to begin new payment gateways for users. Plus, all investors who took part in the sale will get refunds for their money within 30 days.
Credit card companies previously reflected some hesitation toward working with crypto companies and digital asset trading. In June, Wells Fargo, a bank in San Francisco, publicized that it would no longer let clients to purchase cryptocurrency with its credit cards. This decision was made to not get involved in potential risks resulted from cryptocurrency usage. Furthermore, J.P. Morgan Chase, Bank of America and Citigroup limited their customers to not buy cryptocurrencies with credit cards. J.P. Morgan Chase stated that it stopped the service due to the volatility and possible risks; however, Citigroup stated that it would review their policy on crypto market as it is growing these days.
Author: Jieun Lee