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What is LAToken?
LAToken is a blockchain platform, that tokenizes and makes assets tradable, ranging from equity and debt to real estate and works of art. For asset owners, LAToken unlocks the value of assets by selling their tokenized fractions to crypto investors. For investors, LAToken opens global access to real assets using cryptocurrency, with lower transaction costs, maximum transparency, and security.
— Artem Chestnov, Business Development for LAToken
The crowdsale will begin on August 22, 2017 at 18:00 UTC (Round 1). The LAToken (LAT) is an ERC-20 token, therefore, only Ethereum is accepted during the crowdsale. The crowdsale will run in four stages, each with a different associated development category that the proceeds will go towards:
Round 1: Equity; August 22–29, 2017
Round 2: Real estate; September 5–12, 2017
Round 3: Debt and commodities; September 19–26, 2017
Round 4: Illiquid assets (e.g. works of art); October 3–10, 2017
The token price for round 1 will be .0001 Ether per token (LAT), with 25,000,000 tokens available. If demand exceeds this amount of tokens, there will be a 25,000,000 token reserve that is issued. Price and further details about rounds 2–4 will be released after round 1 is complete.
Token Distribution information
There are a total of 1,000,000,000 LAT tokens being created, with 200,000,000 LAT available during the crowdsale. There will be an additional 600,000,000 tokens “unfrozen” when the original ICO token price increases by ten times. This is done in order to create a price floor and add stability to the project.
Tokens will be distributed at the end of each round, so contributors will not have to wait until all rounds are complete to receive their tokens.
— 50%: Available during the crowdsale (includes a previous presale where presale tokens will be converted to crowdsale tokens)
— 20%: Network growth
— 20%: LAToken company tokens
— 10%: Team members
Use of Crowdsale Proceeds
— 40%: Used to engage asset owners and investors (to bring them to the platform)
— 20%: LAT token fund
— 10%: Team bonus pool ($1,000,000 maximum)
— 10%: Proof of Assets servicing deployment
— 5%: Administrative expenses
— 5%: AI underwriting development
Valentin Preobrazhenskiy, Founder
Valentin previously founded AIB Zalogo, a home loan marketplace. He served as managing partner of Avega Capital and has a master’s degree in finance.
Danila Simonov, CTO
Danila served as CTO for AIB Zalogo and has a variety of development experience. Danila was the winner of an international development contest and has a bachelor’s degree in financial analytics.
Denis Simagin, Managing Director
Denis is the co-founder of Compensair, a legal service company focused on compensation for disrupted flights within the EU. He previously worked as an engagement manager at Mckinsey & Company and has held roles as an investment analyst. Denis holds a master’s degree in finance and accounting.
Artem Chestnov, Business Development
Artem previously worked in the food and beverage industry, most recently as vice president of Reborn, a health food company in Russia. He has served as marketing and innovations director for Anheuser-Busch Inbev and has a master’s degree in business administration.
Eli Taranto, IR Director
Eli is currently the COO of Sidorok Capital and is the former head of private banking for Narodniy Credit Bank. He has also served as managing partner for Magnum Group, a marketing and communications company.
Michael Sbitinkov, CTO of LAT Back Office
Michael has previously held the role of CTO at FundNAV, Altera Capital, and suvenirka-crm.ru. In addition to these roles as CTO, he has a variety of development experience.
Katerina Pantyuhina, PR
Katerina is a PR specialist, having worked as a PR and marketing consultant for a number of different startups. She is the former head of marketing and communication at EET Europarts Rus, and former senior marketing manager at diHouse (ECS Group).
Siranush Sharoyan, Chief Editor
Siranush is a special reporter for RBC TV and has previously worked as a special reporter in the field of finance. She has worked as a freelancer for Forbes and has her Ph.D. in business journalism.
Igor Kolokoltsev, Community Manager & IR
Igor has worked for and started a variety of other startups in both the tech and education industries. He has experience in marketing and managing IT professionals.
Alexandra Petrova, Executive Assistant
Alexandra previously worked within the Tax Dispute Resolution Group at Deloitte and holds degrees in international politics and political science from Moscow State University and London School of Economics, respectively.
The above ICO information can be found on the LAToken website and in the whitepaper. (1)(2)
ICO Alert: How long has the platform been up and running or does it still require development? What are the next roadmap goals for the project?
Artem Chestnov, Business Development for LAToken: The platform is based on an existing home equity loans marketplace that has facilitated 12,000 mortgage offers and 1,000+ deals from seven banks and 25 investors last year. It runs on a hedge fund back office platform and the assets can already be listed and tokenized on the platform. Next steps are the inclusion of new asset classes and the creation of special investor tools for ease of transactions. The final goal is to create what we believe will be the Nasdaq of Tokenized Assets.
ICO Alert: How does the investment and listing process work on the LAToken platform? Could an asset holder sell the entire asset on the platform, or only fractional parts of it so as to not physically exchange ownership? Where does the LAT token come into play in this process?
LAToken: The asset owner provides information about the asset, the share he wants to sell, and the settlement date and the following begins:
— An LAT-certified appraisal of the asset is conducted
— The asset owner sells part of the asset to an LAT-certified Trustee
— The asset is tokenized on the LAT exchange and sold in fractions to investors
— The tokenized asset is tradable in fractions on a secondary market
— The seller buys back his asset on the settlement date or it is sold at auction by the Trustee
— The token holders get their allotted cash
ICO Alert: The success of LAToken seems to largely depend on a network effect being created between those listing assets and those interested in investing in assets. How will LAToken attract both parties, as well as asset holders that may not understand what cryptocurrency is?
LAToken: We are developing the strategic partnerships with both parties. The key asset owners and key investment funds will create the center block of the new system.
Asset owners do not necessarily need to understand the cryptocurrency, like they do not fully understand now the process of mortgage credit securitization works. They are going to get a fast, special advisory service to go through, as well as an efficient receipt of the funds. A number of ecosystem players will be involved, including trustees and advisors.
ICO Alert: Some team members are listed as “presently employed” in their current positions that are not LAToken related. Will each team member be moving on to join the LAToken team, or working part-time/advising the project?
LAToken: We have the core team, that is involved full-time into the project, and a group of advisors, who are involved in their other projects in parallel to LAToken. After the success of the ICO, we plan to expand the team quickly, as we will need to attract asset owners and investors in various parts of the world. We are already preparing for these steps. We have to be a like a diamond: hard (hard working), crystal clear in what we are doing, and very efficient. The core team will use a developed, sharp approach to ensure a fast growing organization.
ICO Alert: In what category do you see the largest demand for tokenized assets? Is there a reason you’re breaking down the crowdsale into four periods, where each period has a primary category of investment (i.e. round 2 is focused strictly on real estate)?
LAToken: The global asset value we aim to unlock is estimated at $517 trillion, out of which $217 trillion is in real estate, $215 trillion is in loans, $65 trillion in equity of listed domestic companies, $17 trillion in commodities and $3 trillion in works of art. As you see from the numbers, we expect the largest demand to be generated in the real estate sector. Real estate is less liquid and transaction costs are currently reaching 15% of the asset value. This makes tokenization a perfect alternative to accessing capital. In 5–10 years, one might forget about mortgage credits or other current forms of real estate financing and switch completely to tokenization. It is way more convenient, cuts down on most of the transaction cost, and thanks to blockchain technology, is secure, fast and efficient. We are planning to deploy our system in several stages and relate each crowdsale to deployment of additional system functionalities.
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(1) LAToken Website, LAToken, (2017)
(2) LAToken Whitepaper, LAToken, (2017)