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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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Analysis

Forex Update: A Good Time to Accumulate Euros

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On our August 31 Forex Update, we revealed how the Euro is looking strong against major currencies such as the British Pound (EUR/GBP), Japanese Yen (EUR/JPY), and the Canadian Dollar (EUR/CAD). Widening our scope, we discovered that the Euro is also doing well against other major currencies. Other than its recent struggles against the US Dollar (EUR/USD), we can say, with conviction, that the Fiber is one of 2018’s top performers.

In this article, we review EUR’s performance against the Australian Dollar (EUR/AUD) and New Zealand Dollar (EUR/NZD) to show why it may be a good time to accumulate Euros.

Euro/Australian Dollar Analysis

The EUR/AUD pair dropped to as low as 1.16033 in August 2012. This concluded the long bear run that saw the 45.06% devaluation of the Euro against the Australian Dollar from the 2008 high of 2.11197. While the drop may look depressing to long-term investors, seasoned traders pray for plummets like this. They know that fortunes are made by investing when markets crash.

So far, EUR/AUD is rewarding those who bought the crash.

Monthly chart of EUR/AUD

Those who bought the bottom are now up by close to 30%. More importantly, it appears that their investments may be about to significantly grow. EUR/AUD has just broken out of a large ascending triangle pattern on the monthly chart.

In addition, the monthly RSI is threatening to break out from its own symmetrical triangle pattern. From the looks of it, the breakout can happen anytime.

With EUR/AUD reversing its trend, you have one very good reason to accumulate Euros.

Euro/New Zealand Dollar Analysis

The EUR/NZD pair suffered an even longer bear run than the EUR/AUD pair. After posting a high of 2.57906 in February 2009, EUR/NZD went into a long downtrend. The correction drove the pair to as low as 1.38792 in April 2015. In over six years, the Euro lost over 46% of its value against the New Zealand Dollar.

Then again, there are those who make a very good living by buying the bottom. This is risky business. However, a fundamentally strong currency like the Euro is likely to bounce back hard after losing almost half of its value.

Monthly chart of EUR/NZD

If you bought the bottom, you would be in the green by over 26%. If not, well, it’s not too late. As you can see, EUR/NZD has just broken out of an inverse head and shoulders pattern on the monthly chart. This structure is one of the best if not the best reversal pattern in technical analysis.

On top of that, you can see that the monthly RSI is already in an uptrend. It’s been generating a series of higher highs and higher lows for some time now. This is a great signal telling us that bulls have taken control of the market.

With this breakout, EUR/NZD has just launched a new uptrend. This is another very good reason to accumulate Euros.

Bottom Line

Other than its struggles against the mighty greenback, it appears that the Euro is performing brilliantly against other major currencies. Recently, it managed to reverse its trend against the Australian Dollar and the New Zealand Dollar. In addition to its rosy outlook against the British Pound, Japanese Yen, and Canadian Dollar, we believe that now is a good time to accumulate Euros.

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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3.6 stars on average, based on 235 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




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Analysis

ETFs: What Is The SEC  Really Thinking?

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As a veteran Wall Street type, I was not surprised at Thursday’s SEC announcement on the VanEck-SolidX Bitcoin ETF.  Once again they gave a “no decision”. This pushes the deadline back to December 29, 2018. Don’t be surprised if New Year’s Eve comes and goes and nothing happens before the SEC is forced into a action by the end of February.

Back in August, when the first delay was announced, crypto investors’ reaction was swift and painful.  On Thursday, after a temporary hiccup, prices took a surprisingly positive turn. If we are to believe for just a moment that crypto prices act rationally (or just occasionally) then comes two obvious questions, are crypto ETFs good or bad? Secondly why can’t the SEC come up with an answer?

Never Say Yes

Let’s start with the easy question first: what’s up with the SEC?  Having dealt with this teflon organization for over 30 years, their actions with regard to VanEck-SolidX are the same pattern they have followed forever.  Practically never do they approve anything. Instead they provide two choices: reject or delay. By delaying the VanEck-SolidX application they are accepting the ETF concept in principle but laying out objections that must be corrected.

The result of this regulatory song and dance, don’t expect a decision until the last minute. The reason is that the main issues are not likely to be resolved in time. In fact, I doubt that the ETF proposal gets approval for perhaps as much as another year.  Here is why.

SEC Speak: Obfuscation

According to Jake Chervinsky, attorney for VanEck, the SEC asks “18 multiple part questions covering seven pages.” He adds: “It’s not encouraging to see the SEC ask if the bitcoin futures markets are “of significant size” despite having already concluded last month that they’re not.”

This is a tactic in obfuscation that the SEC loves when an applicant has not provided an adequate response.  In this case there is no objective answer to how liquid a market must be to meet the measure of significance.  Moreover, there is little or nothing that can be done in the short run to create greater liquidity.

The SEC is a political body as much as any agency of the Federal Government.  In raising the issue of liquidity, they can stand behind their role of protecting the public without at the same time hindering public access to a class of assets, even at current depressed levels, is worth $200 billion, more or less.

The SEC Is Right With Their Delays

Does the crypto world really benefit, as this stage of its evolution, by fostering a group of ETFs?  The argument in favor says that this is the way to simply and safely offer the individual investor a way to participate in a diversified portfolio of crypto.  That sounds noble – or is it just something that makes lots of money for those who create them?

But so far, at least from the viewpoint of the SEC, ETF applicants have not created a more secure domain.  More importantly, even if this were not the case, what does the investor gain from investing in a diversified list of crypto when Bitcoin overshadows about every other altcoin?

With nothing against those that believe in the benefits of ETFs, the benefits in current terms is far better for the ETF sponsor that it is for the investor.

Looking just at the math, an individual investor could be just as well off buying Bitcoin, Bitcoin Cash, Ripple, Ethereum and EOS. Admittedly, it is somewhat more complicated finding a place to buy and store Ripple, but with this small portfolio, you cover 75% of the entire crypto asset class. If security is an issue simply go to  blockgeeks.com/cryptocurrency-safe/ and select from a list of hardware wallets.

So whether the SEC gives their approval of VanEck-SolidX in December or February might make a difference if this were 2020 or sometime thereafter.  As for now, it really isn’t critical to the mass acceptance of crypto.

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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4.4 stars on average, based on 105 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto.




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Analysis

Stocks Pull Back From Highs as Pound Plunges

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After yesterday’s record-breaking session, US stocks once again broadly opened at all-time highs, even as the momentum of the global rally waned. Chinese stocks kick-started the day by extending their relief rally off their 4-year lows and Europe also ticked higher, although the major indices couldn’t hold on to their early gains. Since the US open stocks are drifting lower, but with no major events scheduled for today, a calm afternoon session is likely on Wall Street.

GBP/USD, 4-Hour Chart Analysis

The slight weakness came on the heels of the weaker than expected European flash Manufacturing and Services PMIs, while Theresa May’s Brexit ultimatum also weighed on local equities. The Great British Pound fell sharply on the news too, erasing yesterday’s lofty gains and briefly getting close to the 1.30 level, as the Dollar rallied across the board.

NASDAQ 100 Futures, 4-Hour Chart Analysis

The Nasdaq has been lagging the Dow and the S&P 500 from a short-term perspective and the tech benchmark is once again leading the way lower today. The worse than expected guidance by Micron (MU) from yesterday is weighing on the segment and the market-leading tech giants are also weaker than average.

10-year US Treasury Yield, 4-Hour Chart Analysis

All eyes are still on the bond market, as Treasury yields are near multi-year highs concerning almost all maturities, and with the 10-year yield being very close to signal a trend change in the multi-decade structural downtrend.

While next week’s rate hike by the Fed is near certain, the outlook for the next year will likely be crucial, and given the positive US economic trends and the trade wars’ contained impact, the market’s rate hike expectations are rising across the curve.

Futures and Option Expiries Lead to Choppy Trading

Today is an important day for futures and options traders, as the quarterly contracts are expiring across asset classes, and that has a huge effect on stock and commodity markets as well, with high volumes and volatile trading especially around the key strike prices. Strong trends are rare on these sessions and day-traders should be cautious of sudden volatile spikes in even the most traded assets.

Copper, 4-Hour Chart Analysis

Commodities already experienced volatile swings throughout the day, with especially gold being tossed around the $1200 level that has been in the center of attention in the past weeks. Shorts in copper have been squeezed heavily before the end of the week, with the crucial metal surging above key support with the rally in Chinese stocks, while WTI crude oil retreated from a more than two-month high above the $71 per barrel level as the Dollar rallied.

Featured image from 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 350 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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