Circle, the issuer of the USDC stablecoin, has launched a new platform offering tokenized gold and silver trading, according to a press release issued on Christmas Eve.
However, a Circle spokesperson told CoinDesk that this was “fake.”
The platform, launched under the name CircleMetals, was promoted through a press release issued on December 24, a day when many U.S. businesses were closed or had limited capacity and slower response times.
The press release describes a new service that enables 24/7 swaps between USDC and so-called gold (GLDC) and silver (SILC) tokens, said to be backed by COMEX-linked liquidity. Bizarrely, it prompts users to exchange on the platform and receive a “1.25% CIRM reward.” CoinDesk was unable to verify the aforementioned CIRM token, which does not appear to be listed on major data aggregators.
The site requires users to connect their wallets to be able to redeem so-called precious metal tokens. It is generally considered a bad idea to connect a wallet directly to an unverified website, as malicious actors may drain the user’s wallet.
The press release even used Circle branding and purported to quote executives, including CEO Jeremy Allaire.
“This is confirmed to be untrue,” a spokesperson told CoinDesk when asked.
A press release announcing the product, distributed via a cryptocurrency-focused PR thread, contained what appeared to be a link to an exchange platform that would allow users to link their addresses and offer rewards for the exchange of so-called tokenized gold and silver tokens.
ChainWire, the public relations firm that originally issued the press release, declined to comment.
While the website is still active, there is no evidence that GLDC or SILC tokens exist or involve any legitimate financial institution.
