Dubai-based blockchain digital asset management venture LumiShare struck a deal with a group of private investors, including the private office of one member of the Abu Dhabi Royal Family, to raise $2.2 million in funding, for a total of $3.3 million in funding to date.
Significantly, the funding deal by LumiShare comes amid tightening of investments by venture capitals and private equities in view of serious concerns about startups’ ability to generate profits from operations.
The venture raised the capital in the early stage of its Abu Dhabi-licensed SRG token presale.
LumiShare said its $SRG token is not a stablecoin – or a cryptocurrency – as it is backed by three uncorrelated assets: gold, a cash recovery fund, and technology, and the product is designed to offer consumers a reliable inflation hedge and financial security.
The latest funding round of LumiShare – formerly known as illumiShare – is led by the private office of Sheikh Mohamed Bin Ahmed Bin Hamdan Al Nahyan from the Abu Dhabi Royal Family.
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.
The crypto and NFT (non-fungible token) markets have been going through major upheavals of late, following a deep plunge in digital currency values and bust of leading crypto exchanges such as FTX.
A Bank of International Settlements (BIS) study estimated that 73 percent to 81 percent investors lost money on their investments in cryptocurrencies between 2015 and 2022.
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