How Can I Successfully Invest in Crypto During a Bear Market?

It is no secret that the cryptocurrency industry— and the global economy as a whole— has been facing recent hardships. 

Fears that a “crypto winter” has arrived are in full swing. Billionaire twins and founders of Gemini crypto exchange Cameron and Tyler Winklevoss shared last month that the industry is currently in a “contraction phase” which has been “further compounded by the current macroeconomic and geopolitical turmoil.”

The global crypto market cap dropped 5.28% in late May 2022, losing an estimated half a trillion dollars of market capitalization. To make conditions worse, TerraUSD (UST) then broke its peg to the U.S. dollar and turned to its sister cryptocurrency, Luna, to maintain its value. Both collapsed and led to a $60 billion loss in market capitalization alone. As of July 2022, Bitcoin has lost nearly 70% of its value since reaching its all-time high of $69,000 in November 2021. It’s no wonder why a wave of worry has swept the crypto community. 

Ric Edelman, a trailblazer among RIAs, told Forbes this week that he is not concerned by the current crypto climate, even though the market is down more than three times the 20% that constitutes a bear market.

He provided examples of tech mega stocks that have also suffered significant losses in 2022, including social media giant Meta and leading streaming service Netflix— both down 54% and 67% year-to-date, respectively.

This is important to highlight. With inflation at a multi-decade high worldwide, having doubled between March 2021 and 2022 per the International Labour Organization, it is not hard to imagine why concerned investors are unloading their riskier crypto assets on a mass scale. 

According to World Bank president David Malpass, “for many countries, a recession will be hard to avoid.” He explained further that “the war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth.”

So the question becomes, are there still returns left to be made within the crypto space? How can we strategically cushion ourselves from the consequences of the current economic climate? 

At Liti Capital, we strongly encourage our community to take this opportunity to enhance their financial literacy and thoughtfully approach investment decisions to weather any financial storm.

As a private equity company specializing in litigation finance that operates on the blockchain, we present investors seeking unique portfolio diversification with a rare opportunity to combat unwanted losses during periods of economic instability.

Litigation finance has an overall low correlation to external financial markets and is considered countercyclical to them, meaning that the industry often performs better in economic downturns.

Take COVID-19, for instance. While financial fallout has been felt worldwide in its wake, the demand for third-party litigation financing shot up in response to it. According to The Financial Times, COVID-19 could potentially provoke an unprecedented rise in claims that are anticipated to linger far beyond 2021.

Per Bloomberg Law, law firm profits jumped 14% within the first 9 months of 2021, compared to a mere 6.3% in 2019. Suits centered around supply chain disruptions as well as breaches of contract in the realms of delivery and manufacturing lags are expected to continue. 

In addition, the value of claims is adjusted to the inflation rate within the litigation finance sector– making the industry largely immune to inflationary challenges. 

With the market 22 billion USD by 2027 in the United States alone— up from 10 billion USD in 2018— there is no better time to engage in private equity’s highest performing alternative asset class. 

Exclusive for the majority of its quarter-century history to elite investors, anyone can participate in the litigation finance industry via Liti Capital’s first-of-its-kind equity token, $LITI. 

As $LITI is backed by and representative of a share of stock in Liti Capital, it offers institutional and retail investors alike a chance to invest in crypto safely and tactically regardless of the ongoing crash. 

At Liti Capital, our ability to source ‘investable’ legal case is, arguably, unrivalled by other Litigation Funding players.

This ability is critical for our success, hence why we place significant attention on our portfolio construction and diversification. We currently have a pipeline of cases with a total winnable value in excess of $15 billion, spanning several sectors covering diverse legal matters.

To learn more about the Swiss-regulated equity token, please visit www.LitiCapital.com.

Liti Capital’s long-awaited new staking program is now live on the Polygon network!

Geneva, Switzerland, 1 March 2022;  Liti Capital SA, the blockchain-powered Litigation Finance specialist that has brought this highly lucrative asset class to retail investors through tokenized equity, has today announced that it has integrated with Polygon.  

Polygon, a secondary scaling solution for the Ethereum blockchain, is now a major player in some of the hottest areas in cryptocurrencies, such as DeFi (Decentralized Finance), DApp (Decentralized Application), DAO's (Decentralized Autonomous Organizations) and NFT's (Non-Fungible Tokens). 

The ‘mapping’ of $wLITI on Polygon means that token holders can use the Liti Capital App to transfer their tokens from Ethereum to Polygon.

The Liti Capital team analyzed multiple options until validating the integration with Polygon. The choice to integrate with this Layer-2 chain was based on several factors, including the huge savings in transaction costs and speed.

For example, as of December 2021, the Ethereum blockchain processed about 14 transactions per second with each transaction costing on average around $25. Polygon, on the other hand, claims to be able to process up to 65,000 transactions each second with fees costing less than a fraction of a cent.

Liti Capital has two symbiotic tokens. Its $LITI token represents a share in the company under Swiss law. While the $LITI token gives access to voting rights and to dividend payment upon completion of a KYC process, it is not on any exchanges by design. For this purpose, the Company made a wrapped LITI (wLITI) for trading on Uniswap and other DEXes.

Jaime Delgardo, CTO at Liti Capital comments: ”Liti Capital’s decision to map its token on Polygon is expected to accelerate the adoption of our $wLITI token. Our community has been eagerly awaiting today’s news, and can now benefit from fast transactions and low gas fees.”

$wLITI token holders will now be able to transfer their tokens over to Polygon. It will take approximately 10 minutes for their tokens to appear on Polygon. When that is done, users can switch to polygon by simply clicking on : "Change Network to Polygon" in the Liti App.

At launch there will be three options: 

While Liti Capital has provided three options for how long users can stake their tokens for, there are no lockups, meaning users can un-stake their $wLITI whenever they need to. The maximum $wLITI that can be staked is one million. 

If a user decides they want to un-stake their tokens, instead of losing all the rewards, the system calculates how much interest the user has collected and issues the relevant amount back to the token holder. 

On top of that, Liti Capital has created functionality that allows users to create separate stakes that vest over different times. So a user could stake some tokens for 30 days and then create a separate stake for 60 days. 

Once the time period has come to the end, token holders can simply re-stake using any of the three options available and begin earning again. 

Litigation Finance is the practice of buying a share of a court case and then helping to win that case, taking a portion of the profits. Buying a share of the case provides the plaintiff with the funds to continue their side of the battle. Then Liti Capital hires the best lawyers, and if they win the case, help to find and collect the award. Liti Capital considers ongoing court cases to be “assets,” and these assets are what stand behind the LITI token. 

Because of the large payouts of these high-profile cases, these assets are extremely valuable. The Liti Capital team has extensive experience and a wide array of tools, including AI, that will help determine which cases are winnable as well as profitable. 

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For further information, please email pr@liticapital.com

About Liti Capital

Liti Capital is a Swiss Limited Liability Company, specializing in Litigation Finance and FinTech. Liti Capital buys litigation assets to fund lawsuits and then helps the plaintiff win the case. Tokenized shares of the company lower the barrier of entry for retail investors, give token holders a vote in the decision-making process, and distribute dividends to token holders upon the success of the plaintiff.

Visit the Liti Capital website: https://liticapital.com/

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