While many coins went under together with the price of bitcoin and increased regulatory attention to ICOs, the team behind LATOKEN is very active . How do they manage in the brave new world of tokenization, we talked to Valentin Preobrazhenskiy, LATOKEN CEO.
Q) You lead one of the first projects in the crypto space. How are you coping in the post ICO world?
The post-ICO landscape is marked by new, very important trends. One of those is Security Token Offerings — probably the strongest trend for 2019. And we’re doing everything to embrace it. In fact, LATOKEN is one of the first cryptocurrency trading platforms allowing companies to launch STOs for accredited investors outside the US and some other countries. We’ve partnered up with a licensed broker to make it all possible. Secondary trading of security tokens is also available on LATOKEN. At the moment, there are four security tokens already being traded on our platform. Moreover, we’re about to launch the very first full STO.
Q) Your product idea turned out visionary, all attention now is on tokenization. And of those two examples that have been on your website for quite a while, tokenization in real estate and in art came out a busk of projects. What is your position now as a tool to tokenize?
Indeed. Tokenization is part of LATOKEN’s DNA and we’re more confident than ever about its promising future. Not long ago, a $30M condo in Manhattan was tokenized. While real estate and art could benefit immensely with tokenization, I believe the market is moving closer to the tokenization of debt, equity, and commodities.
Also, I’d like to focus your attention on another extremely interesting trend: stablecoins. The tokenization of fiat currencies by issuing fiat-linked stablecoins opens the doors to transborder transactions. As stablecoins are based on the blockchain, they offer immense value for traders. By relying on stablecoins, transactions bypass private corresponding banks — an extra layer that typically holds international transactions for 3-5 days and charge very high commissions. Blockchain guarantees transactions are processed immediately and at much more reasonable cost.
There is another interesting use case. Nowadays, people need fiat currency to purchase food and goods in most countries. If they have crypto, they are forced to exchange it, rather than use it directly for day-to-day operations. Here is where stablecoins come into play. Their stability makes them a great digital alternative for the regular user, to send and receive money. LATOKEN has already listed 7 different currencies: US Dollar (USDL), Euro (EURL), Indian Rupee (RUPL), British Pound (GBPL) Swiss Franc (CHFL), Argentinean Peso (ARSL), Brazilian Real (BRLL). Users can simply log in, put British Pounds, get Rupees or exchange them for any other currencies on our marketplace, no matter where they are, and it’s all done at the blink of an eye. Stablecoins are extremely convenient and useful for the transborder transactions.
Q) Why does one need an LA token, why not accept all direct pairs possible?
LA is a next generation cryptocurrency that will work on our blockchain. LA will be used as a payment for the commission within it. Plenty of tokens will be issued on this blockchain, including tokenized fiat currencies to be used for transborder transactions. The goal of LA is to make transborder transactions much easier and cheaper than it is now.
Q) What is your corporate vision towards tokenization now? How do you see the market in 1,3,5 years?
Currently, not everyone has access to a wide range of assets to invest. Tokenization will certainly change that, providing investors with plenty of new investment opportunities. For example, Apple shares could be tokenized, and Chinese investors could buy them, something barely impossible in today’s world. We expect the field of tokenized assets to grow rapidly within the next five years. The reason? Their great convenience to investors.
Q) What cannot be tokenized?
There is something we have to ask ourselves before launching the process of tokenization. Where is the demand for assets tokenization? Which assets will achieve a demand for liquidity? Technically, almost everything can be tokenized, but there is no demand for everything. For example, the cost of tokenization, the cost for transparency, for consumer goods could be higher than the benefit from liquidity. So, if you tokenize a car which is a subject for damages, you will also have a cost for the analysis of car conditions. This car will also soon or later go out of fashion. Finally, you will understand that there is no need good point in tokenizing your car as an investment instrument. You can invest in a leasing company who can issue a token but not in a particular car.
Q) You are unique also, because in contrast to others, you have had a lengthy hands on experience. What is your main conclusion? Any advice to newcomers, the market still being relatively open?
Thanks for your appreciation. The market is always open to those who are trying to build something revolutionary. As soon as you really have something that creates true value, of course. There are some really cool projects out there, many of them were listed on our platform. Here at LATOKEN we support each of those projects to ensure the crypto world gets to know them better. Even though we think that the STO model is more interesting for the investors nowadays, the ICOs are still actual and a very good alternative for many projects. On a personal note, I believe from all blockchain startups there are right now, a true market leader will arise in the near future.
Q) How to attract a mass investor to tokens?
LATOKEN is clear example of a very successful ICO. Taking into account our own experience, as well as the practices of other solid projects, we believe companies should focus on these key points when trying to attract mass investments:
– Interesting and modern idea of your future product;
– Create a strong team with talented developers at its core;
– Feel deeply inspired by your own product;
– Share your inspiration with the entire crypto community
I think that the future is on the side of tokenized assets, which could be easily bought for crypto from all around the world. The opportunity to access shares of successful companies with crypto will potentially attract the view of mass investors.