Recap of the Liti Capital AMA with Blockchain Space
On Monday, June 21st, we had the pleasure to welcome to our Telegram chat:
Jonas Rey, The co-founder and director of Liti Capital SA.
We asked him questions about the development of Liti Capital.
Q~ Thanks for joining us today. Please start off by introducing yourself to the Blockchain Space community and your role in the team ?
A~ My name is Jonas Rey i’m the co-founder and director of Liti Capital SA, the first litigation finance company on the blockchain!
Next to that i’m the CEO of Athena Intelligence, the largest private investigation company in Switzerland. I used to work in private bank before, at Credit Suisse but thats a different life.
I’m in charge of the investigation into the assets that we are buying. We bring big firepower to the litigation that we finance by grabbing extra evidence and by searching for assets that we will then freeze. I’m also in charge of the financial due diligence and the overall strategy of Liti CapitalSA.
Q~ Tell us what Liti Capital is, how it works, and what kind of value the platform adds to the ever expanding Blockchain Space ?
A~ So Liti capital is Litigation finance, which is the most attractive asset class of private equity (60% return on investment on average).
It means that if you have a little company and you want to sue say Coca-Cola and you dont have the money to pay for good lawyers and good investigators, you come to us, if the case has some merits, we pay for it all. Best legal team, best investigators, best strategist. so that you have more chance of winning the case. You pay 0$ for this. In exchange, we take 30–40% of the money that coca cola ends up paying to you.
We bring this to the blockchain for 2 main reasons
- This is an asset that is reserved to the 1%, and its about f’cking time that the general public and small investors can get a piece of that big cake.
- We also want to use our expertise in the blockchain to fight against crypto scammers. So we dedicate 10% of our investment capital to investigate and litigate against scammers worldwide.
The true innovation on the blockchain resides in the fact that we are issuing equity token. Real equity token where if you hold the LITI token you are automatically a shareholder of the company in Switzerland.
Cassiterite : What happens if such company did not win the case ?
Jonas : Then the loss is for us, you pay 0$. We will eat the loss with our capital, that’s why due diligence, both legally and financially is crucial.
We have a team of lawyers in-house and external counsel that assess the likelihood of win and we also assess the financial strength of the defendants to see if they can pay if they lose.
The big advantage of Liti Capital is that we are not just an idea, right now we already have 3 cases in our portfolio. We have raised already USD 12 million and we are only getting started, the company was incorporated 3 months ago.
So we bring a real life usage of DeFi to the blockchain, right now.
Q~ Can you share with us detailed information on the $LITI/$wLITI tokenomics and it’s usecases ?
A~ So 1 LITI = 1 share in Liti Capital SA
The LITi token gives the holder dividend rights. Which means that 80% of the profit we distribute through dividend goes to the community and the investors. In a nutshell, when we make money, you make money, regardless of the value of the token.
1 LITI = wLITI. The wLITI is the tradable version of the LITI token, which will be accessible on Uniswap. The LITI will be accessible on our website and both will be available for purchase on the 25th of June (this Friday).
Because we are doing true equity token, the company only issue a token when a new shareholder is registered.
The max token that we will ever have is 12 million, but right now we have only issued 700k LITI token, which corresponds to the amount of money raised through the traditional investment.
We also want to reassure the community that we are here long term. On listing day, we will have a 1.2 million liquidity pool on Uniswap. The money was contributed by our largest investor and is locked in for 36 months, this is to show that no one is going away anytime soon.
You can use the different tokens in different ways, with the LITI and the wLITI, the community can suggests crypto scams for us to investigate and litigate against. We are already working on a case against crypto scammers so this is for real.
You can also earn wLITI and LITI by participating in bounties. If you send us a case that we ended up taking, we’ll give you some token bounties. if you help in one of our investigation, we’ll give you tokens too.
It’s about making sure the community is engaged on what we do and work with us to achieve greatness.
Q~ Did you raise funds so far? If so, how did you handle them? Are you planning to do any future raises ?
A~ Yes so as I said we’ve raised 12 million already.
We have used 10 of this to acquire a participation in a case with a best case value of USD 1 billion. Which means if this case is won, we get 100 million USD. Just like this.
We are using another 250k for marketing, we are using another 800k for financing on the other 2 cases that we have and the rest is being used to pay for various legal expense (like being approved in Switzerland as a crypto company, etc..)
We are fundraising on a continuous basis because the more funds we get = the more cases we get = the more value we can generate for the community and this means the more return we can give back to our investors.
80% of the funds we raise is used to invest in cases. Of which 10% is used to fight crypto scammers. The rest is used for overhead and marketing and various expenses.
In practice, if we raise 50 million, we dedicated 5 million USD to fight crypto scammers for example.
Q~ Can you give us an update on what the team at Liti Capital has accomplished till date and your future plans for Liti Capital ?
A~ So first, the team has done litigation finance before. I have worked in the investigation industry for the last 10 years, i have traced billions of USD of assets for various clients. I’m good at finding money that people are trying to hide.
My colleague David has ran one of the largest hedge fund in litigation finance in New-York for the last 10 years and Jaime and Andy have worked in blockchain before and are recognized are leader in their field. We’ve done this stuff before so we know what we’re doing.
I think in terms of accomplishement, raising 12 million and acquiring 3 cases is pretty good :) of course we are hoping to raise more as we go so we can get more cases but so far that’s good. We’ve also completed a security audit of our smartcontract with CERTIK, which came back super clean so that’s good too.
For the future, we want to raise more money so we can get more cases.
We want to build a community of people around our project. I hope to have at least 5000 holders of token by the end of the year.
By 2022, I hope to have solved our first case and to be able to distribute our first dividend to our investors and from then, there is no limit.
Long term, i hope we will become the largest litigation finance company in the world.
By the community, for the community. So we can show to the big banks and the big fish of this world that DeFi is not just an idea. It works and its a concept that can work long term.
We’re not trying to get 10x on our token when it lists, we’re not trying to become a meme or to go to the moon in 3 months, no we’re here long term. We bring you solid return for the long term where we make money all together.
As i said, by the community, for the community. Showing the world that DeFi is truly more than an idea.
QUESTIONS FROM TELEGRAM
Q~ Do you have any competitors of are you the first project bringing litigation asset class through the blockchain technology? also what unique features have you introduced that makes Liti Capital better than Traditional Litigation Funding?
A~ Great question ! First we did a comprehensive research before we started and we are the only equity token in litigation finance. In 2017 a company tried to start something similar but they stopped pretty quickly for unknown reasons.
Traditional litigation finance is traditionally not a very liquid asset, in the sense that your money is blocked for 7 to 10 years. That means that if you invest 10 million USD in a litigation finance fund, you are not legally allowed to touch your money for the next 7 years. How crazy is that?
With blockchain and with Uniswap (and other centralized exchange as we grow), we bring liquidity to an illiquid market, which is what was missing in litigation finance until now.
Also litigation finance is usually for the 1%. Who can afford to have 10 million USD blocked on an account at a hedge fund for 7 years ? I cannot do that for sure.
So we bring the most exciting asset class to the 99%.
We are democratizing litigation finance, we are decentralizing it and we are making the DeFi dream come true.
Q~ Is your platform suitable for Crypto beginners? Or does it only appeal to professional users?
A~ Our platform is super easy to use. On it, you can log in very easily, pass the KYC with a couple of click and then simply buy token. You can pay with credit card, crypto or bank transfer if you prefer.
You obviously need a metamask wallet to be able to do so, but i believe everybody here has a metamask wallet !
We’ve designed our app/platform so that even my grandmother could buy token from us.
Q~ How is the process of choosing the lawyers that you offer on your page? I am a lawyer but I live in Latam, is there any expansion plan in Liti Capital to offer help to people who need it and opportunities to professionals in the area in Spanish-speaking countries?
A~ Great question, we work with the lawyers we think will have the best chance of winning the case. This is about bringing return to our investors. We operate globally, I have personally run investigation in 120+ countries. The cases we have in our portfolio are in the US, Hong Kong and Russia and we will definitely operate in LATAM. If you have a case or want to work with us, please reach out to me directly via DM and we can see if we can collaborate !
Also Jaime Delgado, our head of technology is from LATAM so we already have a foot in the region !
Q~ When THE BEAR MARKET COMES, WILL your token PROBABLY DUMP, Are you prepared for this bear market?
How will you handle the panic of your Investors?
A~ Great question. Obviously the value of the token is not always correlated to the asset of the company. We hope that investor will realize that they make money even if the token value drops, via dividend which is super new in Crypto.
Our biggest investor will not dump, simply because it is his money in the liquidity pool, so it would make absolute no sense to do so. Additionally, none of the founders have any token. 0. I personally have 0 token and could not cash them out even if I wanted to.
The founders will get token if we reach certain objectives at the end of the year, but we do not start this project by receiving 20% of the token like any other crypto project.
We get value and we get money by working on the assets, not by selling token.
Q~ How can I be benefitted by. holding LITI TOKEN.. ? can I make PASSIVE INCOME ?
A~ Hey great question ! Yes, by holding the LITI token, you receive dividend, which is 80% of the profit that we distribute.
If the company distribute 1 million USD in dividend, 80% of this goes to the investors. So the more token you have, the more money you will make from dividends which are paid on regular basis.
Please see here the link to the CERTIK report
CertiK Security Leaderboard - Liti Capital
Disclaimer: CertiK conducts security assessments on the provided source code exclusively. Conduct your own due diligence…
Liti Capital Official
Liti Capital Democratizes and Decentralizes Litigation Finance, a form of Private Equity, by offering asset-backed…
Feel free to connect with us there, we’re happy to be super transparent about everything, you can reach out to any of the directors individually and we’ll do our best to reply as quickly as we can.
It’s really nice having the Liti Capital project in here!!!
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