Dear Investors, Friends & Supporters

There are only 13 days to go until Christmas, and we’re busy finalising the details of an exclusive ‘club’ for our loyal supporters and investors. We’ve kept you waiting, we know - but we’re dotting the i’s and crossing the t’s to bring you exclusive bonuses and even a unique non-fungible token (NFT) on a ‘legal theme’ as a thank you for your support. It’ll be worth the wait, we promise!

A new staking programme to reward liquidity provider

Liti Capital is about to launch a brand new staking program for liquidity providers on its decentralized exchange Uniswap. 

On decentralized exchange platforms, liquidity providers (LP) supply an equal value of tokens for a given pair (e.g. wLITI/ETH). The funds are used by an automatic market maker (AMM) algorithm to facilitate trades without an order book and the traditional market makers. 

Traditionally, LPs receive financial rewards made of the trading fees to supply the fund to the liquidity pool. When the LP wants to get their underlying liquidity and any accrued fees, they must burn their LP tokens. In addition to such classic LP rewards, the program that Liti Capital is about to launch plans to include wLITI tokens as rewards earned by the LP for providing liquidity to the Uniswap pool. The rate and returns will be more attractive than the traditional staking program. More details to follow.   

Have a wonderful week ahead.

Kind regards

Jonas Rey
Co-founder & CEO
Liti Capital

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What We've Been Reading

CRYPTO CITIES. Miami, Austin, and New York City have launched or planned to launch their own cryptocurrencies, further pushing crypto fascination. These launches further cement blockchain and crypto into the mainstream, garnering a dramatic increase in institutional interest and investment within the last year. Head over to Forbes for details on CityCoins and questions they are raising for policymakers. 

SPORTY CRYPTO. Cryptocurrency companies have been engaging in deals ranging from stadium naming to partnerships with athletes and outfitters. Crypto exchange FTX announced in April it bought the naming rights to Miami Heat’s arena, in addition to UC Berkeley’s football stadium. Crypto.com bought the naming right to LA’s Staples Center. These moves have been attracting a lot of eyeballs, generating industry exposure, and establishing brand awareness. For more on how sports deals are accelerating the crypto movement, check out Axios. 

CRYPTO BEHIND BARS IN INDIA? A proposed bill that would outlaw cryptocurrency use in India also aims to arrest those who break the law should it go into effect without a warrant and hold them without bail, according to a summary of the bill seen by Reuters. While the government has previously stated it seeks to encourage blockchain technology, this bill would certainly stifle its use as well as India’s non-fungible token market. Hop over to Reuters for further details. 

THIS WEEK’S CRYPTO HEIST. Last weekend, hackers stole nearly $200 million from cryptocurrency exchange, BitMart. BitMart had admitted to $150 million in losses due to a security breach, but the total looks to be in the ballpark of $196 million. BitMart CEO Sheldon Xia has announced that the company will repay users whose funds were stolen with BitMart’s own money. Head to Futurism for more. 

Focus Topic of the Week: What is an Equity Token?

An equity token— a form of security token— is a digital token that is backed by an asset, like an equity share in a company or an organization. Think of it like a stock that’s created and stored on a blockchain. Equity token holders have the same rights as shareholders of a company on the stock exchange, including guaranteed legal protection for investors, dividends, voting rights, and partial ownership. 

Instead of an equity token’s value being based on the cryptocurrency market at large, the performance of an equity token is directly tied to the performance of the company that issued it. Not only does this bridge blockchain technology and traditional business methods, but it also allows for a safer, more stable method of investing in cryptocurrency. 

Because there is no intermediary involvement regarding equity tokens, sales are conducted solely between the issuer and the investor. This reduces transaction costs, making investment through equity tokenization less expensive, more seamless, and quicker for both the issuer and the investor. It also improves liquidity, offers more transparency, and expands accessibility to a wider pool of potential investors. 

At Liti Capital, equity tokenization allows us to merge blockchain technology with the traditional private equity market of litigation finance. LITI, our first-of-its-kind equity token, equates to one share in Liti Capital. It is one of only four Swiss-approved ETOs. wLITI, our Ethereum-backed ERC20 token, is fixed to the value of LITI— meaning that its value is dependent on the performance of our LITI tokens, as LITI is dependent on the performance of our company. Investors of all backgrounds can access wLITI, removing the litigation finance industry's historically high financial barriers to entry so that anyone can participate in this attractive alternative asset class. 

Governance is a decision-making system that all parties agree to adhere to in an organization, institution, or service. Its main goal is to consider the best interest of the members of whatever entity is at hand, while also maximizing available resources to promote its longevity. 
 
In off-chain governance on blockchain, decisions are made by a community leader or a select group of community leaders. This governance style can be further broken down into three camps: benevolent-dictator-for-life, core development team, and open governance. 
 
In the benevolent dictator-for-life model, the creator or head developer of a crypto project gets the final say on blockchain decisions. Whereas in core development team governance— you guessed it— core developers spearhead blockchain growth and adaptions. In open governance, users vote for a team— usually made up of investors, core developers, and blockchain creators— to decide on all blockchain-based decisions. 
 
Because off-chain governance often relies on a group of voices with differing interests and perspectives, decision-making can be a slow process.

Before You Go...

Don’t forget to take a whack at our Liti Capital Crossword! 

The theme this week is “Big Names in Crypto''— we’re covering everything from coins and tokens to exchanges, developers, and our very own Liti Capital team and offerings. Try your luck for a chance at $200 worth of wLITI! Answers must be submitted for consideration.

https://crosswordhobbyist.com/991247/Liti-Capitals-Big-Names-in-Crypto

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Liti's Core Business - Case Update

We wanted to start this week’s newsletter with an update on our core business: the funding of winnable legal cases.

As you know, we have already invested in four highly winnable cases. Whilst precise details of these cases can’t be shared for legal reasons, it is highly likely that at least two of these cases will be settled during 2022. 

This means that holders of $LITI tokens will be eligible for dividends. $wLITI token holders (who, incidentally, can swap for $LITI tokens to take advantage of the dividends and other benefits offered by the $LITI token), will take advantage of the undoubtable hype and correlating rise in token price that the winning cases will bring.

The great news is that the current four cases are all moving ahead quicker than expected - and Liti Capital’s board is very confident in successful results with all four of them. Here’s a quick recap on how they stand today:

1. The Binance Claim has accumulated over 2,300 sign-ups on www.binanceclaim.com and over 1,000 claimants have signed the documents for representation by the Binance Claim Steering Committee and White & Case, LLP, rated the top international arbitration law firm in the world last year. We believe this may be one of the largest consumer arbitration claims in history. 
2. The Employment Dispute has seen recent progress in discovery, and we have received an offer from the defendant to mediate to try and settle the dispute.
3. The Whistleblower Case is in full swing with the expectation that the information will be integral input into the investigations being conducted by US authorities.
4. There will be a hearing in the Large Investment Default Case this year related to jurisdiction where the Plaintiff is well placed for a successful outcome. At this point the facts are so clear that the other side has indicated that they may not participate in the hearing, which would effectively result in an order being made in our favour.  

Liti on Twitter Spaces

We will be organising a weekly Twitter Spaces (a live audio conversation on Twitter) with one of our co-founders on Twitter every Friday at 3pm UCT.  So please diarise and join us if you can - and save up your questions! You just need to follow us on Twitter at @liticapital. When our ‘Space’ commences, it’ll appear at the top of your timeline as a purple bubble for as long as it’s live. When you join our Space as a listener, you can react to what you hear with emojis, check out any pinned Tweets, follow along with captions, Tweet or DM the Space, or request to speak.

The Black Friday Deal

The Liti Capital Big Black Friday Deal attracted some new investors and created a lot of ‘talk’ among the crypto community. Thank you to everyone who supported the initiative!

What We’ve Been Reading 

LAWYERS ON LITIGATION FINANCE. Lawyers are showing increasing approval of the ethical, societal, and financial benefits that litigation finance offers the legal system. Bloomberg Law’s 2021 Litigation Finance Survey demonstrates this embrace of the market has notably intensified even within the last year. Lawyers who agreed that litigation finance promotes access to justice jumped from 70% in 2020 to 88% in 2021. Head to Bloomberg Law for more on the subject. 

THE FUTURE OF LITIGATION FINANCE. As a countercyclical market, demand for litigation finance is projected to climb in 2022 as a response to COVID19. Per Research Nester, the litigation finance industry is expected to expand with a compound annual growth rate (CAGR) of 8.76% globally and 9.19% in North America from 2020-2028. For more market predictions, head to the American Bar Association. 

AMERICAN CRYPTO REGULATION. This week the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) released a joint statement on their plans surrounding regulations on banks utilizing crypto in 2022. This move is made in an effort to protect consumers and keep banks in line, per the letter. Check out The Verge's debriefing.

CRYPTO GIVES BACK. Enjoy some wholesome news ahead of GivingTuesday (Nov. 30)— an altruistic alternative to the upcoming Black Friday and Cyber Monday. Pawthereum, a community-operated crypto project that supports animal shelters and advocates for animals in need, announced this week that they will match donations made to global animal welfare charity FOUR PAWS up to $50,000. Get the full scoop on AP News. 

Focus Topic of the Week: Off-Chain Governance

Governance is a decision-making system that all parties agree to adhere to in an organization, institution, or service. Its main goal is to consider the best interest of the members of whatever entity is at hand, while also maximizing available resources to promote its longevity. 
 
In off-chain governance on blockchain, decisions are made by a community leader or a select group of community leaders. This governance style can be further broken down into three camps: benevolent-dictator-for-life, core development team, and open governance. 
 
In the benevolent dictator-for-life model, the creator or head developer of a crypto project gets the final say on blockchain decisions. Whereas in core development team governance— you guessed it— core developers spearhead blockchain growth and adaptions. In open governance, users vote for a team— usually made up of investors, core developers, and blockchain creators— to decide on all blockchain-based decisions. 
 
Because off-chain governance often relies on a group of voices with differing interests and perspectives, decision-making can be a slow process.

The Liti Crossword...

Do you always keep a finger on the crypto pulse? 

This week’s Liti Capital Crossword covers all the major crypto headlines of the week— so wow us with your market knowledge for a chance at $200 worth of wLITI! Answers MUST be submitted for consideration. Best of luck! 

Enter the Liti Crossword

And finally, a big congratulations to Pierre B for winning the Liti Crossword 2 - your inside-out knowledge of Liti was most evident!

Hello Everyone,

I hope you’ve all had a wonderful week. We’ve been keeping busy here at Liti Capital HQ, as we’re very close to unveiling a new website. Our marketing team has been taking notes on your feedback, so expect an improved user experience, more seamless navigation, as well as fresh, valuable content. We can’t wait to share it with you. 

On top of that, we’re rolling out our new approach to our newsletters. We want to give you the best of the last seven days, from Liti Capital to crypto and litigation finance at large. We’ll be filling you in on articles that have caught our attention, the peaks of the previous week, sharing compact educational rundowns, and even giving you a weekly Liti Crossword for the chance at some wLITI on the house. 

Please send us a message if there’s anything else you’d love to see us put in these updates. 

Until next time, 

Jonas Rey 
Liti Capital CEO & Co-Founder 
rey@liticapital.com

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Last Week’s Highlights

1. We received over 1,000 new claims against Binance following its outages on earlier this year. This positions the case to not only become the largest consumer arbitration case in history, but also a landmark case for the cryptocurrency market. For more on the subject, check out our recent press release and give this write-up a read by Fintech Times. The claim was also covered in a bigger piece on Binance in the Wall Street Journal.
2. We’ve teamed up with Redbird— an eco-conscious UK-based outfitter— to offer you our first round of official Liti merch! All of the profits we receive will go directly to BinanceClaim, in support of our rapidly-increasing number of claimants on their path to justice. As a bonus, purchases also support sustainable agroforestry. Pick up Liti-approved hoodies, t-shirts, and caps here. GIVEAWAY: Snap a shot of yourself in your Liti gear and tag us on Twitter (@liticapital) for a chance to win $250 worth of wLITI. 
3. We announced the winners of our P2PB2B trading competition! Check out who won here. 
4. We had a fabulous article written about us in Business Insider, where David Kay, our Executive Chairman & CIO, speaks about the ever-growing overlap between crypto and litigation in the digital assets space. You can read it here.

Weekly Focus: LITI and wLITI on the Brain?

The best reason to invest in a project like Liti Capital is if you truly believe in its mid to long-term potential. 

If you think, as we do, that crypto has a bright future, you should be willing to hold onto your investments for as long as possible - regardless of whatever volatility they may experience in the short term. As long as you stay focused on its long-term potential, it doesn't necessarily matter how it's performing right now.

Indeed, Liti Capital’s token is far more sophisticated and ‘solid’ than the tokens that are merely a community-driven phenomenon, here today / gone tomorrow, and have all the bells and whistles of reckless gambling. 

Unlike many other tokens that are devoid of fundamentals, Liti Capital’s token is based on a real asset class - i.e. litigation funding - that is proven in the ‘traditional’ world to be the most  lucrative and bear-market resistant investment.

Let’s quickly recap Liti Capital’s two different but symbiotic types of token: the LITI and wLITI tokens.

LITI Tokens

Liti Capital offers access to one of the first equity tokens (ETO) by issuing its shares in a digital format (i.e., LITI tokens) on the Ethereum blockchain. In other words, LITI tokens represent shares of stock in Liti Capital SA, a Swiss incorporated Company. Under Swiss law, LITI token holders benefit from the same rights and protection as traditional shareholders. As such, the holders of Liti tokens can exercise their voting rights to have a say on both the governance and strategic orientation of the Company. In addition, LITI token holders are eligible to receive dividends from the distributed profits made by Liti Capital. Finally, LITI token holders also have (i) access to Liti Capital’s bounty system and (ii) the ability to participate to the class actions against crypto scams initiative, as described further in the “Real world utility” section. 

As an asset-backed token, the performance, appeal and valuation of LITI tokens depend on the attractiveness and the return on investment (ROI) made by the Company on its portfolio of assets. In Liti Capital’s case, those assets are litigation and/or arbitration assets that we believe will generate private equity-like returns (i.e., each asset will generate between 3x and 10x the amount of the investment).

wLITI Tokens

The wrapped version of the LITI tokens (wLITI) represents a right to claim a share in Liti Capital under certain conditions and, importantly, is the instrument that is actively traded on various exchanges. 

Whilst LITI tokens are KYC-compliant, there are no limitations on who may acquire a wLITI, meaning wLITI tokens serve as an ideal trading instrument.

The use case of wLITI extends well beyond a simple trading instrument. In fact, wLITI tokens serve as a tool to engage, incentivize and ultimately reward the vibrant community supporting the project. To this end, Liti Capital plans to (i) distribute wLITI as rewards for liquidity providers and (ii) use the wLITI tokens to enable its token holders to have direct access to class actions conducted by Liti Capital on behalf of community members who have suffered damage, fraud, robbery or loss from crypto scam projects. Holding wLITI tokens also gives you the right to participate in the Scambuster campaign and to benefit from Liti Capital’s investigative and litigating expertise for free.

Traders holding wLITI have a right to claim the underlying shares (i.e., LITI tokens) from Liti Capital at a fixed ratio of 1 LITI for 5000 wLITI. This right is only limited by the successful completion of the KYC process and confirmation that the person has complied with the terms and conditions. 

Learn more about our tokens and how to purchase them, follow this link. 

What We’ve Been Reading 

CRYPTO EDUCATION. In a newer, less traditional financial market like the crypto market, it can be tricky to navigate protecting your investments while also ensuring they are appropriately left to a loved one in the unexpected event of your passing. Check out this NerdWallet article for helpful tips on how to securely leave your crypto assets to a chosen beneficiary. 

CRYPTO ADOPTION. Former CEO of Citigroup, Vikram Pandit, recently told Bloomberg News in an interview that every major financial institution across the globe will be trading crypto within one to three years. Skim what else he has to say on the future of bank acceptance and adoption of crypto here. 

CRYPTO LAW. A Connecticut jury decided in a class-action lawsuit that cryptocurrencies are not securities. This is the first time in history a jury has been asked whether or not cryptocurrencies should be held to securities laws, and resulted in a win for the defendant, a former executive on Wall. Read more about the case on Reuters. 

CRYPTO IN THE MAINSTREAM. Last Thursday, the chairman of Macy’s received a letter from shareholder NuOrion Advisors, requesting the historic American retailer begin accepting crypto payments, among other asks. For more on Macy’s, head to Forbes. 

CRYPTO SCAMS. American grocery chain Kroger made it in the headlines last week due to a fraudulent announcement that claimed the company would begin accepting Bitcoin Cash as a form of payment. The illegitimate release even made it onto Kroger’s website. Get the full scoop on The Verge.