Newsletter

Newsletter: Nov 8, 2021

Posted on November 8, 2021
Written By  Jonas Rey

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


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

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Liti Capital SA (“Liti Capital”) is a litigation finance company registered in Switzerland under number CHE-379.790.214. The reader should be aware that Liti Capital obtained a non-action letter from the Swiss Financial regulator (FINMA). All information contained on this website is intended for general information, and should not be construed as investment advice. The information on this website is not intended to provide a sufficient basis on which to make an investment decision. It does not constitute a recommendation or take into account the particular investment objectives, financial conditions, or needs of individual investors. The information is not an offer to sell or a solicitation of an indication of interest to purchase any security of Liti Capital, or to make any investment. An investment decision should be made solely on the basis of offering documentation that Liti Capital may provide to you separately, which you should review in detail with your professional advisers. “US Persons” (as defined for purposes of US securities laws) will not be allowed to purchase any securities that may be issued by Liti Capital unless they satisfy the requirements of US securities laws, including qualifying as an accredited investor. There can be no guarantee that any security issued by Liti Capital will be profitable and investors may lose all of the capital they invest in any such securities. While Liti Capital attempts to ensure that the information contained on this website is accurate and complete, no representation or warranty, express or implied, is made as to the accuracy, completeness or reasonableness of the information contained on this website. Liti Capital assumes no responsibility for such errors and omissions, and reserves the right to make changes to content and other information on the website at any time without notice.