The potential of the quite young crypto economy is believed to be far bigger, than most people actually realize.
There are already dozens of cryptocurrencies worth eight or more figures. Bitcoin, for example, even after the recent price drop is the leading cryptocurrency in terms of value and market capitalization, which currently trades at $3930 with market cap making $64.9B according to coinmarketcap.com.
The price of the other two leading currencies Ethereum and Bitcoin Cash makes $310 and $665 and they, alongside with bitcoin, also boast 11 figures market capitalization of $29,2B and $10,9B correspondingly.
Moreover, ICOs have already become a worthy alternative to venture financing, helping blockchain-startups to attract almost $2 billion already. And it’s just the beginning of crypto expansion to a multitrillion dollar markets like real estate, commodities, works of art, etc.
One of the pioneers of this expansion is LAToken, blockchain-powered platform based on an existing home equity marketplace, allows investors to buy and sell assets like equities, debt, real estate, metal, and works of art in “fractions” by tokenizing them.
This Monday LAToken launched test trades of tokenized Apple shares and listed them at LAT Exchange.
Valentin Preobrazhenskiy, CEO of LAToken said:
My dream is to build a NASDAQ on Blockchain with a wider range of tradable assets, bluring the boundaries between crypto and real- economies, and offering our clients a dramatic reduction of listing costs, settlement time, and transaction costs.
According to the project’s white paper, the turnover of asset-backed tokens may exceed $1 trillion by 2025, and in this situation, LAT has chances to be the next highly popular cryptocurrency due to its usability on the platform.
Within weeks we’ll list new asset classes, ranging from real estate to works of art at LAT Exchange, enabling maximum diversification for crypto investors.
The working of the LAT Exchange involves buying liquid asset-backed tokens (LABT), backed by publicly traded assets (such as shares, bonds), to sell later at a pre-determined settlement date. In such a way the buy and sell process involves LABT and LATokens. Investors would need to buy the LABT on the LAT exchange at the time of auction using LATokens, and on the settlement date, the reverse process (i.e. LAToken buys back LABT from investors) is done at the current market price of the underlying asset.
LAToken allows anyone tokenize and then fraction assets and list them on the exchange, visited by thousands of different-scale investors, looking for option to diversify their portfolios. This enables platform users invest across asset classes, even if the size of the transactions are small. For example, it’s impossible for an investor with $50 to own a share in Apple Inc. wich costs $157. In cintrast at LAT Exchange they can buy fractions of the tokenized Apple shares for those $50.
The platform guarantees minimal transaction costs as well as maximum transparency and security. For the sake of the latter it partnered with Rivetz International to bring TEE hardware-based cybersecurity, new blockchain-powered model for decentralized cybersecurity, to the LAT platform.
The LAToken’s ICO is set to start on August 22, 2017. Being completed in in four rounds: round 1 – Equity, 2 – Real Estate, 3 – Debt and Commodities, 4 – Illiquid assets (e.g. collectables, work of art), it will last for 2 months.