Chronicle - Nov 26, 2023
How to (not) Ride the Uranium Bull
A uranium-backed token was introduced last week. Each token is backed by a pound of real uranium (U3O8). Owning the token gives you a 1:1 exposure to the uranium price. The issuer intends to make uranium investing available to the general public; previously, it was only available to institutions. It sounds fishy, doesn't it?
Sanmiguel Capital Investments, a Bahamas financial advisory firm, launched a token that is 'backed by uranium'. The token can be traded on Uniswap. A few days after its launch, everything looks okay. There are hundreds of transactions, and the token price is quite similar to the real uranium price. At the time of this writing, the $U token is traded at $80.3, while the U3O8 spot price, according to Numerco, is $80.75.
What could go wrong? Many.
The main actor behind this token is Madison Metals, a publicly listed (GREN.CN) uranium exploration company with projects in Canada and Namibia. Madison signed a 10-year uranium forward sales agr…
Keep reading with a 7-day free trial
Subscribe to Christmas Corp to keep reading this post and get 7 days of free access to the full post archives.