Key Data

• Trading Name: Edelcoin
• Legal Entity: Edelcoin AG
• Activities: Stablecoin Issuer
• Location: Swiss
• Regulations: Self-Regulatory Organization
• Key People: Andreas Wiebe/Josef Reichert
• Latest news: Edelcoin
• Latest update: October, 2024

Edelcoin is a digital asset platform that offers a stablecoin designed to provide a secure and transparent digital currency solution. The company focuses on leveraging blockchain technology to create a stable and trustworthy cryptocurrency, which is fully backed by physical assets or fiat currencies to maintain a stable value. With a focus on compliance and transparency, Edelcoin aims to cater to users looking for a reliable digital asset for trading, payments, and value storage.

• Global Accessibility: Designed for both individual and institutional users, Edelcoin’s stablecoin can be used globally for remittances, payments, and trading, making it a versatile solution for cross-border financial transactions.
• Blockchain Technology: Edelcoin is built on a secure blockchain platform, ensuring transparency, security, and immutability of transactions. This allows users to track transactions and verify the stability of the coin in real-time.

Products and Services

The Edelverse ecosystem offers a diverse range of services and products tailored to the unique needs of its community. The following key offerings ensure that users can maximize the potential of their Edelcoin holdings while actively participating in a secure, dynamic, and sustainable ecosystem:

1. Wallet Service: Secure Management of Edelcoin Holdings

• Provides a user-friendly and secure platform to store, send, and receive Edelcoin.
• Features advanced security protocols to ensure safe management of digital assets.
• Enables access to Edelcoin holdings anytime and anywhere.

2. Lending: Financial Flexibility for Users

• Allows users to leverage Edelcoin as collateral for accessing funds.
• Offers competitive interest rates and flexible repayment options.
• Supports both personal and business financial needs, enhancing the utility of Edelcoin.

3. Boutique: Exclusive Edelcoin Merchandise

• Showcases a curated collection of premium clothing and accessories designed for Edelcoin enthusiasts.
• Developed in partnership with Swisscows AG, each item reflects the essence of Edelcoin.
• Allows users to express their support for Edelverse with stylish, high-quality products.

4. AMM Pools: Efficient Automated Market-Making

• Facilitates seamless trading of Edelcoin and other compatible cryptocurrencies.
• Utilizes user-provided liquidity to enable efficient price discovery and minimize slippage.
• Empowers a dynamic trading community through secure and transparent transactions.

5. Liquidity Pools: Contributing to a Stable Ecosystem

• Users can provide Edelcoin and other digital assets to maintain liquidity.
• Participants earn rewards and a share of the platform’s transaction fees.
• Plays a crucial role in sustaining the health and stability of the Edelverse marketplace.

6. Merchandise: Show Your Support for Edelcoin

• Offers a range of high-quality products, including clothing and accessories.
• Enables community members to demonstrate their enthusiasm and commitment to the Edelverse.
• Helps strengthen the brand and recognition of Edelcoin through stylish merchandise.

Edelcoin Token Analysis

1. Concept and Value Stability

Edelcoin is presented as a stablecoin backed by a basket of precious and base metals, aiming to offer a stable alternative to traditional fiat-backed stablecoins. While the approach of using a diversified set of metals instead of a single asset may seem innovative, several critical aspects require scrutiny:

• Lack of Track Record and Market Trust: As a relatively new player in the digital asset space, Edelcoin has yet to establish a proven track record. Unlike established stablecoins such as USDC or DAI, Edelcoin lacks a broad user base and deep market liquidity, making its long-term stability uncertain.
• Complexity of Asset Backing: The strategy of backing the token with a basket of different metals introduces complexity in valuation and management. Price fluctuations in individual metals could complicate the stablecoin’s overall value stability.

2. Auditing & Vault

Edelcoin promotes high transparency and regular audits of its reserve assets to build trust. However, there are critical concerns regarding the extent of this transparency:

•  Due to them Edelcoin ensures transparency and accountability through a rigorous auditing process for its asset-backed token. Metal reserves are stored in secure vaults and undergo regular validation, verification, and independent audits by reputable firms. These measures provide assurance of the authenticity and security of the underlying assets, making Edelcoin a reliable and trustworthy payment token. This commitment to high standards guarantees that all holdings are accurately represented and verifiable, reinforcing user confidence in the asset-backed model.
• Edelcoin says it ensures the security of its metal reserves by partnering with a highly secure Swiss vault known for its expertise in storing precious metals. The vault adheres to industry-leading standards, featuring advanced surveillance, stringent access controls, and state-of-the-art infrastructure to guarantee the safety and integrity of Edelcoin’s underlying assets.

3. Regulatory Environment and Compliance

Edelcoin is marketed as a Swiss-compliant digital asset, but regulatory acceptance and compliance challenges could significantly impact its operations:

Edelcoin AG is a member of the VQF, a self-regulatory organization recognized by the Swiss FINMA, ensuring its operations comply with Swiss financial regulations. This affiliation highlights Edelcoin’s commitment to transparency and AML compliance, adding credibility to its business model within Switzerland. However, VQF membership alone may not ensure compliance in other jurisdictions.

5. Technological Risks and Security Issues

Edelcoin is initially issued as an ERC-20 token on the Ethereum blockchain, with plans to expand to other EVM-compatible chains. This raises several concerns:

• Security Risks in Blockchain Migration: Expanding to new blockchain platforms introduces technical complexity and potential security vulnerabilities. If not properly managed, these migrations could expose the project to hacks or operational disruptions.
• Dependence on Ethereum: As long as Edelcoin remains confined to Ethereum, it is vulnerable to high network fees and scalability issues inherent to the Ethereum network. This could significantly hamper everyday usability and transaction efficiency.

Customer Reviews

Trustpilot: 4,1 Stars with 10+ Reviews

Key People

• Andreas Wiebe
• Josef Reichert

Rating and Conclsuion

Compliance Rating: Orange Compliance

Edelcoin AG has made significant strides by becoming a member of the self-regulatory organization VQF, which is recognized by FINMA. This shows a proactive approach to compliance and adherence to Swiss financial standards. However, its regulatory compliance is limited to Switzerland, and there is a lack of clarity about its regulatory status in other jurisdictions. The lack of publicly available, detailed information on its governance structure and full transparency around its reserve audits raises concerns. Until Edelcoin can demonstrate a broader regulatory reach and greater transparency, it cannot be classified as fully green in compliance.

Risk Rating: Orange Risk

Edelcoin’s backing by a diversified basket of metals theoretically reduces price volatility, but the absence of independent audits and full disclosure around reserve management increases operational risk. Additionally, as a relatively new player in the stablecoin space, Edelcoin has yet to prove its resilience during market stress or achieve broad market adoption. The limited track record and liquidity risks associated with trading on secondary markets add to its risk profile, making it a cautious choice for potential users and investors.

Rating Conclusion

Edelcoin AG demonstrates a strong commitment to compliance within Switzerland but faces challenges in building broader market trust due to transparency gaps and unclear regulatory standing outside of its home jurisdiction. It is placed on our Orange Compliance List due to its limited but credible regulatory affiliation. The project is also listed on our Orange Risk List, reflecting concerns over liquidity, market adoption, and the complexity of its reserve management. Potential investors and users are advised to proceed with caution and monitor developments around regulatory disclosures and reserve audits before engaging significantly.