LATOKEN: BRIDGING THE GAP BETWEEN REAL AND CRYPTO ECONOMY
INDUSTRY OVERVIEW AND CHALLENGES
Global real estate market is a $217 trillion asset economy followed by debt which is estimated at whopping $ 215 trillion. At some time or other, we all have thought of investing in debt funds, blue chip stocks or real estate which not only provide good returns on investment but are very stable. Although we are aware of the benefits of these assets class we still do not invest in them due to three main factors—
- High transaction costs: Transaction costs is a major deterrent to free trading of the various asset class. A debt issuance on a leading stock exchange will attract a fee of over USD 20,000 in addition to the underwriting fee which is typically 1% of the amount raised. Same is the case with listing equity at a leading exchange. Underwriting and listing fees range over $100 k creating high entry barriers for small players.
Real estate brokers charge 5-6% of the deal size as commission. This is topped by the capital gain tax which is around 20% of the proceeds. The sale process takes on average not fewer than 65 days making the process cumbersome. Trading an artwork is even more inefficient, the buyer is charged a premium up to 25% and seller fees associated with an artwork is anywhere between 20 - 25%.
Large ticket size and illiquid nature of assets: High cost of real estate and various taxes and brokerages associated with real estate makes it very difficult for asset owners to liquidate them. Also, retail investors find it very difficult to make investments in this space due to the large ticket size of the investment.
Skewed information and frauds: We are in an information age, one who has well timed and apt information has tremendous power at their disposal. ** ** The information asymmetry between investors leads to poor quality assets selling at a higher price and vice versa. Fraud is also a major problem which has plagued the financial system for long. Centralization of data and various departments working in silos are major factors which give rise to fraud.
EVERY CLOUD HAS A SILVER LINING: LATOKEN
LAToken is a platform based on blockchain technology where asset backed tokens can be traded. The value of asset tokens is linked to the price of an actual asset which is traded in the real world. These asset tokens are traded on LAToken platform. LAToken plans to create an ecosystem where asset tokens backed by equity, commodity, debt, real estate or artwork can be easily traded.
LAToken platform currently supports asset tokens backed by commodity and equity. Users can create asset tokens backed by equity (like Apple, Tesla, Amazon) or commodity (Gold, Silver, Crude Oil) and trade it on the platform. In the future, they plan to launch asset tokens backed by real estate and artwork too.
LAT is the all-purpose base currency on LAT platform for asset token creation to liquidity enhancement by LAToken liquidity fund. This will ensure LAT value will appreciate as the trading volume on the platform increases.
FEATURES AND BENEFITS OF LATOKEN
LAToken is based on an already successful product Zalogo created by the same founder Valentin Preobrazhenskiy. This is a proof of the work which the team can deliver
The LAToken platform is currently live and asset tokens backed by equity and commodity can be created as well as traded on the platform. This boosts the reliability of the project as they have a minimum viable product (MVP) ready. The platform already has LAT wallet, LAT marketplace, trading terminal, back office, appstore, and constructor. Compared to its peers (most of which are in concept stage) LAToken is the only project which offers an MVP.
LAToken allows cryptoholders to minimize risks by diversifying across all major asset classes ensuring single compliance and disclosure standards. Only LAToken allows trading in multiple asset class making it a pioneer among its competitors.
LAT PLATFORM AND HOW IT WORKS?
Trading of Asset Tokens based on Liquid Assets
- LAToken issues asset tokens linked to price of publically traded assets
- Investors can buy these asset tokens via cryptocurrencies in an auction
- At a pre-determined date, the asset tokens are bought back by LAToken at the market price of the underlying asset
- The low transaction cost will ensure huge participation from small retail investors
Trading of Asset Tokens based on Illiquid Assets
- Asset owner transfers ownership of asset to a pre-certified custodian
- Custodian issues tokens based on price of asset which is bought by investors
- Investors can sell asset tokens in secondary market
- Asset owner buys back asset tokens on settlement date or custodian sells the asset to gain fiat currency
PLATFORM
- LAT Wallet: Allows users to control token balance, make transactions among other.
- LAT Marketplace: Used to offer asset token for initial sale
- Trading Terminal: A typical exchange where bid and ask price are maintained in real time
- Back Office: Provides NAV in real time of investment
- Appstore: Apps for various specialized tasks can be developed and sold on appstore
- Asset Token Constructor: This helps to setup/tokenize an asset which can be traded by investors
About LAToken
SYMBOL: LAT
PRESALE: LATP will be awarded during presale which is equivalent to 3000 LAT
Important Dates: Token sale starts on 22 August 2017
Hard Cap: USD 40 million
LAToken revolutionize the way we make investments and will bridge the gap between real and crypto exchange
Read the white paper here https://sale.latoken.com/whitepaper
For more information visit https://latoken.com/
By
Bitcointalk Username: karanj
Bitcointalk link: https://bitcointalk.org/index.php?action=profile;u=1030341