Abu Dhabi-based digital asserts provider LumiShare has completed a US$3.2 million fundraising effort to support its issuance of a physically-backed security token.
The funding was led by members of the Abu Dhabi royal family, and the capital will be used to buy gold reserves stored in a safe room at the bank.
The digital assets world has been shaken in recent weeks by the collapse of FTX, previously one of the market’s biggest crypto exchanges.
In addition, a study by the Bank of International Settlements estimated that between 2015 and 2022, more than 75% of investors lost money on their cryptocurrency investments.
According to LumiShare, its $SRG token is not a stablecoin as it is physically backed by gold and cash.
“The FTX crash showed us that failing projects and a lack of transparency and honesty in the crypto ecosystem really broke the trust investors had in even the most successful companies,” said Ben Sharon, Co-Founder and CEO of LumiShare.
“We must go back to crypto’s original goal, to create a transparent economy while offering investors the security they need.”
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