LumiShare, a blockchain digital asset management company with headquarters in Dubai, struck a deal to raise $3.2 million from a group of private investors, including one member of the Abu Dhabi Royal Family. Substantially, the LumiShare funding agreement comes at a time when venture capitalists and private equity firms are tightening their investment guidelines due to grave concerns about startups’ ability to turn a profit. The venture raised the capital in the early stage of its Abu Dhabi-licensed SRG token presale.
LumiShare’s $SRG token is not a stablecoin or cryptocurrency because it is backed by three uncorrelated assets: gold, a cash recovery fund, and technology, and it is intended to provide users with a solid inflation hedge and financial stability. Sheikh Mohamed Bin Ahmed Bin Hamdan Al Nahyanf From the Abu Dhabi Royal Family led the current funding round for LumiShare, formerly known as illumiShare, according to Arabian Business. Company officials said the money raised will be used to buy gold reserves that will be stored in a safe room at a bank in Abu Dhabi.
The venture offers an SRG token that sets a floor price which correlates with the all-time high market cap value whereby, as long as the $SRG market cap grows, the reserves will grow simultaneously and determine a new floor price. Ben Sharon, co-founder and CEO of LumiShare, said the FTX crash showed 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.
“We must go back to crypto’s original goal – to create a transparent economy – while offering investors the security they need,” Sharon said. Sharon said in order to increase transparency and add to investor trust, LumiShare keeps a physical gold reserve in Abu Dhabi equivalent to a percentage of the all-time high market cap.
The venture said it also keeps a cash reserve which is built from the margins between the gold market price and the gold price it pays. “Our auto burn mechanism, assets-backed NFT marketplace, staking mechanism and payment gateway act as the third insurance mechanism,” the company said.
Ahmed Elmetwally, CEO of the private office of Sheikh Mohamed Bin Ahmed Bin Hamdan Al Nahyan from the Abu Dhabi Royal Family, said the family office was proud to support the LumiShare project which is aimed to grant users a safe haven from the insurmountable amount of scams plaguing the market. “LumiShare’s transparency grants investors peace of mind while their assets are being backed by three pillars that safeguard their investments from the rollercoaster of the cryptocurrency market,” Elmetwally said.
