LATOKEN is a blockchain protocol and platform for creating and trading asset tokens. It allows crypto-holders to diversify their portfolio by getting access to tokens linked to the price of real assets. The platform enables asset owners to unlock the value of assets by creating and selling their asset tokens. It is the no.1 cryptocurrency exchange in terms of liquidity for new digital assets.
LATOKEN allows trading tokenized shares of Apple, Tesla, Google and other blue chips, as well as gold, oil and real estate ETFs via crypto. LAT Crypto Research team of 4 McKinsey and Deutsche Bank alumni has forecasted that the project will tokenize and trade assets worth $1.2 tn by 2025, while the value of assets tokenized globally is expected to reach $5 tn. The exchange also offers a smart and secure LAT Wallet which allows you to create and manage your tokens, assets, smart contracts, applications and make transactions on blockchain. The wallet provides access to the LAT Exchange as well.
STOupdates got in touch with Valentin Preobrazhenskiy, Founder and CEO at LATOKEN and discussed about how the trading platform aims to be a leader for tokenizing and trading real assets while unlocking a whole new market of tokenized shares.
Tell us about LATOKEN and its ecosystem briefly and the main vision behind starting this project.
Blockchain is a perfect instrument to unlock the access to the capital markets. Right now, only 15% of the world population have access to capital markets. This technology allows us to reach more people out there.
We want LATOKEN to become the #1 exchange for transborder money transactions and the assets market. We are building a solid infrastructure to help us reach that goal. We are also developing our own blockchain to serve a powerful transborder payment system.
What benefits does LATOKEN provide to the users & firms looking to trade and list tokens on the exchange?
Listing your project on LATOKEN could help you acquire new users rapidly, onboard real community members, traders. In many cases, the ability to generate “network effect” is crucial in determining a project’s success. And to do so, it’s extremely important to rely on your exchange. We distribute information about all listed projects among hundreds of thousands of traders through our multiple communication channels, including email blast and social media profiles.
We also feature some projects on our main site, which is visited by 2 million people per month on average. Telegram is also an extremely powerful tool that can bring up to 100K verified users to the project. Additionally, LATOKEN offers several promotional activities to boost engagement with the crypto community, such as airdrops or trading competitions.
Firms in this industry are quite often affected by the unfriendly regulations. How does LATOKEN plans to offer a fully regulated compliant exchange for digital assets?
We’ve partnered up with a broker dealer to issue security tokens. Secondly, we guarantee that qualified investors within the LATOKEN platform get access to these new investments. It works for most countries. The infrastructure of the LATOKEN ecosystem has allowed us to list 5 security tokens already. We are one of the pioneers in security tokens listings landscape. We have a full service of security token launching on LATOKEN.
What is the criterion behind selecting a particular security token to be eligible for listing on the LATOKEN exchange?
There are about 20 technical requirements like “Reg D” or “Reg S” licence from SEC and so on. But speaking generally: I think there are some people who have a big experience in capital markets, in tech entrepreneurship, who are capable to put together high performance teams to create something that will conquer the market. We support all of the projects which have strong teams and great plans to deliver real value. They can come to our launchpad or get their token listed for secondary trading on our platform.
Crypto Exchanges on several occasions face a very common problem of liquidity. What measures are you taking to solve the liquidity issues?
I have a special dashboard which shows me how do new tokens listed on LATOKEN feel themselves. I check what are the spreads, how big is the order book. I definitely can say that we are #1 liquidity provider for new tokens. We invite market makers, we provide liquidity with our trading desk, we are making spreads as tight as possible using strategies which help us to gather liquidity from a whole market.
What kind of security measures are you taking in order to give your users a stable and trustworthy platform?
We have a plenty of protection layers, such as: advanced distributed system architecture built to protect against DDOS, all private keys for our wallets are encrypted by AES-256 and are stored offline, all data from website is transmitted using encrypted transport layer security (TLS). There some more security features like 2-factor authentication and others.
What is your major target market? Are there any specific countries you are majorly focusing initially in terms of asset trading? Describe your expansion plans for future.
At the moment we are mostly active in Asia in Europe, making our best to scale in Northern America. I believe that blockchain is a global bridge to make investments and payments transborder, cheaper and faster. And it is what we are actually doing in LATOKEN.
What benefits do you think security tokens have over other financing methods like IPOs and ICOs?
It is much cheaper to issue security token than to run full IPO. Even though there is strict regulation for STOs, it is much more friendly process in comparison with IPO. What is even more important – there are quite many investors around the world who don’t have access to capital markets to take part in IPO, but who have possibility to buy security tokens on LATOKEN for instance. Comparing with ICOs – security tokens are much more safe way of investments for investors as they get shares of the company. It is the main advantage.
As the craze for ICOs is going down, what expectations do you have for the growth of security tokens or STO industry? What role will ICOs play in coming years, will they be able to survive?
I think the ICO model is still relevant. But if you attach equity to your token then it will make it more attractive to investors. The guys who came up with utility tokens they expected these currencies to conquer a future global market. It is like a .com bubble. Thousands of companies created, but only a few will lead the world in terms of capitalisation. The same applies to blockchain. I believe among all of these startups there are future market leaders.
Speaking about STOs, well, I cannot say that it is the No.1 trend in crypto world, but it is definitely a giant that’s sleeping right at the moment. STOs could help create a transborder equity markets which allows people from Africa or any place in the world to invest in American or European equities. Secondly, security tokens have the power to turn illiquid assets into liquid ones. Private equities, venture funds, startups: all of them can issue shares and be traded in a secondary market. In my opinion, the number one case for this year is stablecoins. To be more specific – the rise of stablecoins for the transborder payment applications. This is a top business case for 2019.