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ICO Analysis: Liquid Asset Token (LAT)

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Some of the asset-backed tokens issued at the LAT Exchange may be considered as securities subject to regulation in certain countries. Turnover of the tokens in these jurisdictions would be restricted by LAToken until appropriate registration occurs. The LAT Exchange will follow KYC and AML rules and apply for exchange license where needed.

Today we tackle Liquid Asset Token, which we believe is the first to market with a radically important technology product. We spoke yesterday on Propy, which focuses strictly on the trading and sale of private real estate, and we identified its primary problem as being legal hurdles. As you can see, LA Token makes no bones in addressing this issue. (The above is from their executive summary. Not using avoidance strategies regarding legality is an early plus for this review.) The decision to disclose and decide on this matter at the outset should hardly be understated – this immediately helps people decide whether it exceeds their risk appetite and helps gauge how connected to reality the founders are.

We invite you to have a look at the tokenized asset exchange:

Now, anyone can make a nice UI these days, and it’s not very expensive. Massive Javascript libraries exist for the purpose of making slick web design as easy as possible. Nevertheless, having something we can click, touch, feel, and get a sense of, is a huge plus for those trying to determine whether we are looking at something which interests us enough to make an investment or not. We see below that there are some inner-workings remaining to be finished, as this asset has no details at all:

Nevertheless, the above screenshots do some of the work for this analysis. We can see that we’ve got a workable platform here. We’re not young or old enough to be confused by the fancy web design, so we’ll have to look into the technicals and definitely would suggest a security audit (bug bounty program anywhere?), but overall, we’re already looking at something which will tokenize the future.

Tokenizing Any Asset?

Heavily regulated environments like the United States will grow increasingly upset as the rest of the world takes off around us. Most technologies which are enabling such things as tokenizing your rental properties or your vast Rollex collection are deeply afraid of operating in the United States. The prosecutorial, Puritan arm of the federal government swings in every direction, often with little or randomized provocation.

Uncle Sam Is Cool With This?!

ICO initiators no doubt learned from the story of Kathleen Giffords, Ripple executive who kissed up to California regulators, whose firm was later fined nearly a million dollars by the FinCEN. All of which is to say that, as usual, if you’re in the US and you’re interested in this ICO, entering it will be doing so at your own risk, as you have no legal recourse being that the first part of the agreement is that you are not a US citizen. Being a crypto enthusiast, this may not be a deterrant, but let’s get the legal language out there, as the author has a feeling this one might be hard to resist:

IN THE EVENT OF ANY CONFLICTS OR INCONSISTENCIES BETWEEN SUCH TRANSLATIONS AND COMMUNICATIONS AND THIS OFFICIAL ENGLISH LANGUAGE WHITEPAPER, THE PROVISIONS OF THIS ENGLISH LANGUAGE ORIGINAL DOCUMENT SHALL PREVAIL. YOU ARE NEITHER A UNITED STATES CITIZE NOR PERMANENT RESIDENT OF THE UNITED STATES, NOR HAVE YOU A PRIMARY RESIDENCE OR DOMICILE IN THE UNITED STATES, INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS OR ANY OTHER POSSESSION OF THE UNITED STATES. NONE OF THE OWNERS OR BENEFICIARIES OF THE COMPANY ON BEHALF OF WHICH YOU ARE AUTHORIZED TO ACT, ARE U.S. CITIZENS OR PERMANENT RESIDENTS OF THE UNITED STATES, NOR HAVE THEY A PRIMARY RESIDENCE ORDOMICILE IN THE UNITED STATES, INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, OR ANY OTHER POSSESSION OF THE UNITED STATES.

Also banned is the Republic of Singapore.

Now that that’s out of the way and by continuing to read you agree we are not conspiring to commit securities fraud or anything of the like, let’s talk a bit about what tokenizing assets means and why it should happen.

The Revolution Will Be Tokenized

People often sink money into things they cannot immediately get the value back of in times they may need it. In the case of homes, this puts them at the mercy of lenders who do not just want a piece of the pie or a guarantee of repayment, but in an ideal situation for the banksters, they would simply claim the deed in exchange for an equity payment. Of course they would, that’s the name of the game. But in the blockchain, we find the opportunity to immutably record any transaction of willing participants. As such, it becomes infinitely more possible and eventually much safer to, instead of liquidating assets at pawn shops and other emergency funding options, people can capitalize on the shifts in value of their assets. Instead of getting a loan or worse on your wholly owned holdings, you can sell shares in them.

There are a few questions that we will need to answer regarding this technology:

  1. What, if any, rights are token holders granted?
  2. How are said rights enforced?
  3. What requirements are made of the physical asset holders?

The Tokenization of All Things will involve the growth a few industries. For certain types of assets, publicly verifiable storage solutions will need to emerge. The lack of such things and the demand to put trust in third-parties we’d never heard of was a major contributing factor to our negative feeling toward OneGram.

LAToken Team

AIBanks Issue

The author did some research on the LAToken team, and came across an interesting thing: they’re all part of what seemed to be another project. This raised huge warning flags. The author wondered if he had wasted all time up to present, simply being able to write down one word here: “scam.” Reading through the documents, it started to sound like the same thing. Then, an explanation emerges:

Zologo is an apparent business in Russia which is headed Valentin Preobrazhensky, who was published by Forbes Russia in March. In this article he and his co-author elucidated what the author says above:

In Russia, 20% of the population spend more than 60% of their income on repayment of expensive and short-term consumer loans. This makes it necessary to save and reduce consumption. As a result, production, wages and jobs are shrinking. Unemployment leads to an increase in overdue debt, a rise in the cost of loans and a new round of cyclical consumption crisis. […] At the same time, in Russia there is a small amount of credit for the population […] especially in the context of a recession. At the same time, it has a great social significance – it reduces the debt load of the most accredited part of the population, increases their economic activity and productivity. Therefore, this channel [“non-targeted mortgages”] of stimulating demand is the least inflationary one.

Deeper Into LAToken

Since the token sale is ongoing and apparently almost over (they added 5 million from the reserve to the sale), we’ll answer the questions above and get to verdict and details.

  1. What, if any, rights are token holders granted?
  • “LAT do not grant their holder ownership orequity in the Company or the right to participate in the control, direction, or decision making of the Company.”
    • So, no ownership in Zologo or LAT proper.
      • The second part of the answer bleeds into the next question.
  1. How are said rights enforced?
  • “As discussed above, LAT are issued on the basis of a smart contract via a blockchain platform. A smart contract is a way to discharge obligations by means of the algorithm input into the respective program code. As such, smart contracts shall fully comply with the laws applicable to them, in particular, they shall ensure compliance with confidential information legal requirements.

Have to pause here and address this. It could be a deal-breaker. What we are seeing here is two things: the passing of the buck and the fiat approach to enforcement. As a crypto enthusiast, the author prefers technical solution to problems involving trust. We want a Utopian world where everyone does what they say will, but since we won’t get that, we build code. We verify then trust, not the other way around and not in any other order.

LAT are here saying: we will provide a platform for you to buy and sell assets that you may never physically touch, and we will profit handsomely in so doing, even garnering profit at every turn, but we will do nothing but put these words on paper as far as providing you assurances that things will work out for the best.

Ah, but I had such great hopes. Well, the cryptocurrency world could always use a little more drama

  1. What requirements are made of the physical asset holders?

And in the abov, we get the answer: all the requirements. LAToken seems to want to put this thing out in the world, make a few million bucks, and hope for the best. The myriad of issues that might arise, well, they don’t want any part of all that, as the abundance of red herring legalese in their actual whitepaper suggests.

 The Verdict

Had high hopes. They were dashed when you got to the bare-metal of how the property is enforced. Property enforcement is what the government arose to do, after all, in many respects. Therefore anything that rises up and says it will replace the government had better have most if not all of the answers as to what happens if and then what.

But all the same, they’re almost funded. That counts for something too – it means you might not fall directly off a cliff if you still decide to see how this plays out. The platform could be a lot of fun to play with, and you need tokens to do it. But just like we feel that Propy will not be the property and asset swap platform of the future, we feel that Liquid Asset Token is falling short, too.

Risk

  • Plain as day, outlined above. Every investment on the LAT platform will require its own analysis due to the legality and the great potential for scamming. You may be creating more work than you can compensate yourself for through trading there. -4

Growth

  • Already built a product. Shows the firm is willing to invest its own funds to get going. Could be that getting off the ground is what’s necessary in order to get enough lawyers to find a workable global solution, but we’re not sure about this company being the ones to do it. Nevertheless, for having shown us something that will later be aped by countless competitors, we give LAT first-mover points in the sum of 5.
  • Changing the way people borrow and repay money is the kind of thing that can make waves at every level of society. As elucidated by LAT CEO Valentin Preobrazhensky above, this plays particularly well for people in less regulated markets where predatory lending is more prevalent, as well as pockets of more regulated environments where poverty is real but property ownership manages to sustain itself. +2
  • Has everything the others have and more. This is also a great drawback for trying to get started, so we split the points: +1.
  • The author grants this team 0.25 over Propy, as a personal disposition in how these two ICOs are likely to perform at market. Reasoning: having the ability to test out the product is a much greater hype generator than any amount of social media campaigning.

Disposition

Having a positive carry of 8.25 points, we cannot forget the fundamental reality that all they are doing is building a public swimming pool, a blockchain within a blockchain, and the investor will very much be in the wilderness when interacting there. At least at first. We’ll update in 30-45 days with performance information.

Investment Details

A total of 1 billion tokens are being generated as the author writes this. 40% of these were initially put on the market, but due to alleged high demand during their pre-sale (which we did not get wind of at all, here at Hacked), they put another 5 million up for sale. Their status meter looked like this, going to press:

The exact price of the tokens at the time of writing was around 31 cents:

Please exercise caution when sending hard currency over the Internet.

Visit https://sale.latoken.com if you wish to invest in LAT.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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5 stars on average, based on 2 rated postsP. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link




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4 Comments

4 Comments

  1. gxd01

    August 23, 2017 at 7:40 pm

    Just a small comment – the propy review does not show under the ICO category, but is linked under the ICO ratings part. Also perhaps conclude the review with the 4.25 as it does look like 8.25. Good review as ever, never had even heard of this ICO until this.

  2. gxd01

    August 23, 2017 at 8:05 pm

    To follow up clicking on the propy ICO in ICO Ratings takes you to the categories – and there is no propy review…

  3. hs

    August 24, 2017 at 1:00 am

    You’ve got a typo
    Disposition
    Having a positive carry of 8.25 points

    Shouldn’t that be 4.25 !

  4. sickettyboy71

    August 24, 2017 at 1:30 am

    Not so sure about this “high demand” thing. I checked this one out a week ago and that teal line indicating the number of tokens sold hasn’t moved a great deal. I enjoyed your assessment.

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XRP Price Analysis: XRP/USD Behavior is Demonstrating Strong Downside Vulnerabilities

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  • Ripple’s XRP was trading up with modest gains in the latter part of Wednesday, just some 0.60%.
  • XRP/USD continues to move within a narrowing range-block formation. The price is subject to a breakout, with risks pointing to the downside.

Recent Price Behavior

Ripple’s XRP is seen holding very modest gains of 0.6% in the latter part of Thursday’s session. Price action remains limited, given the narrow trading range, in which it is moving in. There is a lack of commitment from both sellers and buyers, and as a result a range-block formation can be eyed. XRP/USD has been within the confinements of this for the past seven sessions now. Currently, there aren’t any technical suggestions of the bulls recovering and picking up the mid-December momentum again.

Given the above-detailed price behaviour, risks point to the downside. One of the key reasons for this is XRP/USD moved into consolidation mode after a recent hard fall on 10th January. Prior to the drop, the price was trading sideways, which was seen from 19th December, apart from the freak spike to $0.46 on 24th December. A technical breakout was then observed, as mentioned on 10th January, where XRP/USD dropped a huge 20%. Keeping in mind the described recent journey for the price, similar movements are currently playing out.

Range-block

XRP/USD 4-hour chart.

A breakout is imminent, given that price action is getting tighter. It is worth noting the key levels around this range-block. In terms of the lower support, this should be noted at the $0.3200 mark, the recent low area of 13-14th January. The upper part of this technical formation is eyed at $0.3450, the high from 11th and 14th January.

If the bears manage to force a breach of the above-described, then XRP/USD will quickly be forced to give up the psychological $0.3000 mark. A large area of demand is seen tracking from $0.3000-$0.2500. This has proven to find strong buyers on several occasions – December 2017, August and September 2018.

Furthermore, to see XRP/USD fly the way it has in the past will require a serious amount of upside momentum. Given all of this sideways trading and consolidating, the price is building new areas for itself to have to break down. In terms of upside resistance, this should be noted running from $0.3500 up to $0.4000. Lastly, the price as mentioned earlier, was ranging here between 19th December to 10th January.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

 

 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 108 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Analysis

Price Prediction: Bull Trap Pattern Complete in EUR/USD, New Lows Likely Ahead

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Still Diverging Economies, Converging Monetary Policies

While the long-term trend is still negative in the EUR/USD, the most traded forex pair had a very active start to the year, and it seemed that after a long period of weakness, will finally experience a meaningful counter-trend rally against the Greenback. The European common currency moved above key resistance in the wake of the dovish shift by the Federal Reserve, despite the disastrous industrial production reports and the dismal PMIs from the Eurozone.

The weakening US economic numbers also helped the rally attempt, but despite the move above 1.15, the currency failed to extend the move and it plunged back below resistance, to the previously dominant trading range, completing a bull-trap pattern which will likely lead to the continuation of the long-term trend, with all eyes on the previous low near 1.1215.

Long-Term Chart Analysis

EUR/USD, Daily Chart Analysis

Looking at the daily chart, the trend is clearly bearish in the pair, and even though the steeper of the two main declining trendlines have been briefly violated during the recent rally, which made a stronger counter-trend rally a possibility, the broader trendline is in no danger. The oversold MACD readings that developed in the pair have been cleared back in December, and now the indicator is bearish for the first time since early November.

There is considerable support in the 1.1275-1.13 zone, but given the lack of follow-through after the break-out attempt, and the competed bull trap pattern, odds clearly favor a new swing lower in the ongoing long-term downtrend. Targets for the move are found near 1.1135 and in the 1.0850-1.0950 zone.

Short-Term Chart Analysis

EUR/USD, 4-Hour Chart Analysis

The pair is slightly oversold from a short-term perspective, and a move back to 1.1440 is in the cards here. That said, given the proximity of the 1.15 level and the risk/reward ratio of a long-term trade, traders could enter right away, ignoring the short-term setup. A dip below the lower boundary of the broader consolidation pattern would further confirm the continuation of the long-term trend, but should the global risk rally continue, a period of range trading could still be ahead before a test of the lows near 1.1215.

Key Events Ahead for the Pair

Tomorrow we will have the US Industrial Production and Prelim Michigan Consumer Sentiment coming out. Next week, Tuesday will likely see all the US indicators which have been delayed because of the government shutdown, such as Retail Sales, Housing Starts, Existing and New Home Sales, and the Trade Balance. The Eurozone Manufacturing and Services PMIs will be out on Thursday, while all eyes will be on the ECB’s rate decision and the following press conference, and on Friday the Durable Goods report could cause a sizable move in the pair.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 443 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Analysis

Longest Bear Market in Crypto History?

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In just 30 days, cryptocurrencies will have entered their longest bear market in history, according to Ran NeuNer, host of CNBC’s Cryptotrader show. The frenzied selloff since early 2018 has delivered a beat down to retail traders, hedge funds and long-term crypto holders. However, for one small corner of the market, business is thriving.

Bear Market Drags On

As of Thursday, the cryptocurrency bear market of 2018-19 has reached 391 days. By this time next month, the bear market would have stretched beyond the 420 days seen in 2014-15. Officially, it will be the longest bear market in crypto’s short history. (To refresh your memory, a bear market is defined as a drop of 20% or more from a recent high).

Of course, frantic selloffs are nothing new for cryptocurrencies. Since 2011, bitcoin has experienced at least five epic meltdowns, with losses ranging from 37% to 84%. Each time, the market has come back stronger than ever, culminating in the 2017 bull run that drove bitcoin toward $20,000.

At the height of the bull market in early 2018, cryptocurrencies were valued at a whopping $840 billion. Less than 12 months later, the market bottomed at just over $100 billion. The bearish trend is expected to resume until at least mid-2019, according to a combination of technical analysis, market sentiment and history of monthly momentum. There are, of course, other reasons to expect the bears to maintain control. These include regulatory uncertainty, hesitation on the part of institutional investors to participate and the fallout from the long-winded ICO boom.

Read why 2019 is bitcoin’s year of accumulation.

Interestingly enough, bitcoin has managed to set higher lows in six of the last seven years. In other words, bitcoin’s price bottom is incrementally higher almost every year stretching back to 2012.

Creditors Capitalize

As the bear market stretches on, crypto traders and startups are turning to creditors to fund their shortfall. As Bloomberg recently reported, crypto creditors are finding strong demand from traders who don’t want to sell their coins at depressed prices as well as from big investors looking to short virtual currencies.

Much like hedge funds, most crypto lenders began their operations in 2017 during the market boom. Hedge funds have struggled since the market downturn took effect while lenders have seen their business thrive.

As Olga Kharif notes, the crypto bust is putting lenders on both sides of the equation: “Helping believers pay their bills while awaiting a rebound, and also enabling bets by people who think the drop has further to go.”

As crypto ventures continue cutting staff, companies like BlockFi have grown their revenues and customers tenfold in just six months. Aave, which owns ETHLend, recently opened an office in London and will soon expand in the United States. A company by the name of Salt Lending already employs 80 people. (Keep your eye on Salt, as the U.S. Securities and Exchange Commission (SEC) is probing the company’s initial coin offering.)

The Future

Predicting crypto bottom is notoriously difficult, and many analysts have been burned trying to come up with logical answers to a market that is still in its infancy. In the next 12 months, the evolution of the crypto industry will be dictated by several factors, including the SEC’s regulatory oversight of the market, its ruling on a hotly debated bitcoin ETF and appetite for physical bitcoin futures among institutional investors.

Related: As Race for Bitcoin ETF Heats Up, SEC Identifies Cryptocurrency as a Top Priority in 2019

The ICO model that dominated 2017-18 is also undergoing a massive shift toward security tokenization and even initial exchange offerings. While it’s still too early to gauge the impact of these new funding models, it’s clear that the ICO market is on its last leg. Case in point: token projects raised $1.5 billion in January 2018. By December, that figure had fallen to just $59 million.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 739 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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