High credit card fees force Tiberius Coin to halt sale
Tiberius Technology Ventures, the venture capital arm of Swiss commodity investor Tiberius Group, has temporarily halted the sale of its Tiberius Coin due to the costs of processing credit card orders.
In an announcement on its blog on Wednesday, the company said that investors who had already taken part in the sale and last month’s presale would have their money refunded. The initial sale raised $1m through 700 investors between 1 September and 5 October.
Tiberius said it had received news at the beginning of October that its credit card processors had made it difficult to invest in Tiberius Coin.
“The fees they wanted to charge were detrimental to our business, and for that reason, we could not accept them,” the company said.
It added that more than 100,000 interested individuals had visited its website, estimating that its total client base would have doubled if credit cards were made available as a payment method.
Tiberius Coin was marketed as a metals-backed stablecoin and was pitched as an inflation-resistant investment that would appeal to people in countries with high inflation, weak currencies and corrupt governments.
The company said its platform was built in such a way that it never touched investors’ money. It was directly invested into the underlying metals market, making investors in the coin the owner of those metals.
“We designed Tiberius Coin to help them ensure that their money stays valuable, regardless of local governments, bad policies, and other events that can destroy your wealth,” it said.
Further to its problems with credit card payments, the launch of Tiberius Coin also had problems with scammers trying to pose as members of the team. Some of them were successful as they were able to prey on victims using non-traditional payment methods, the company said.
“These scams would have been much less effective if credit card payments were available because credit card processors practice adequate risk management,” it added.
The company said it would have more news in the coming days and weeks and that it was excited about the future.
“Our token is the solution for clients in countries with failed currencies. Tiberius Coin protects you from inflation and provides you with a legitimate investment vehicle to protect your wealth,” it said.