Introducing Liti Capital and the wLITI token
We’re thrilled to share that the wrapped token of Liti Captial: WLITI is now trading on our exchange with BTC and USDT pairs. The ERC-20 token is a crucial part of the Liti Capital ecosystem. In this blog post, we will introduce the company behind the token.
What is Liti Capital?
Liti Capital is a Swiss investment company in the litigation financing space founded by a team of three co-founders. Jonas Rey, Andy Christen, and Jaime Delgado, with their combined expertise in intelligence, data science, entrepreneurship, and blockchain, created Liti Capital with the “aim to be a thought-leading firm shaping finance of tomorrow. “
Liti Capital uses its investigative capabilities, blockchain-based solutions, and AI to deliver value to its investors.
It offers everything from financial resources to strategic solutions and renowned connections to some of the best law firms in the world to help plaintiffs obtain an award from the court for any losses or damages suffered.
Liti Capital uses blockchain to manage its shares in the form of a digital token and bring together investors and lawsuits. To realize the construction of their litigation financing platform, Liti capital raised $12 million from early investors.
Using smart contracts, Liti capital reduces cost, increases efficiencies, and enables better capital deployment. Due to enhanced transparency and real-time visibility, investors will be able to make more informed decisions while also benefiting from blockchain security.
To understand the business model, one has to grasp the idea of litigation financing. Often referred to as litigation funding, the model has an unrelated third party providing financing for lawsuit expenses. When an individual has suffered a loss due to the misbehavior of another party, the individual might lack funding to pursue a case despite a potential high award in the event of a successful outcome.
This is where litigation financing comes into play. Liti Captial can provide finance for the individual. This removes barriers to access to justice and helps the individual to pursue their case.
Litigation financing addresses the significant imbalance between resources of average and wealthy litigants and attempts to establish equal access to justice. During ongoing lawsuits, it can inject capital and serve as a cushion for personal expenses.
It also benefits law firms that can use funds to cover expenses such as expert witness fees. Having secured funding also reduces the risk that clients will run out of money during litigation.
Investors in litigation financing benefit from potentially outsized rewards on an asset largely uncorrelated to macroeconomic cycles.
Liti Capital empowers retail investors and institutions to benefit from the private-equity like returns ranging from 3x — 10x on an initial investment amount. Investing in litigation also provides an alternative investment vehicle that is relatively independent of broader market movements, even in bear markets, and respectful of human rights and the environment.
To get involved and benefit from the performance of Liti Capital, investors have the choice between two tokens: the LITI token and the wrapped version wLITI.
The Liti token was, upon issuance, one of the first equity-tokens on the Ethereum blockchain. It represents shares of stock in Liti CApital SA and grants the owner voting rights in governance decisions and when it comes to the strategic orientation of the company. LITI token holders are also eligible to receive dividends that depend on the RoI of Liti Capital and might increase in the future if the company is doing well.
Liti holders also gain access to a bounty system and can participate in class action suits against crypto scams if they incurred any damages or losses.
However, as a security-like asset, Liti Capital has to keep an up-to-date registry of all current shareholders, imposing KYC on anyone trying to buy their token.
Since such a token will limit access broadly, the Liti Capital team decided to create a wrapped version of the token that’d be more accessible even across the ever-growing DeFi ecosystem.
The wLITI token is a wrapped version of the LITI token and represents a right to claim a share under certain conditions. Unlike LITI, wLITI can easily be traded on exchanges and decentralized exchanges without limitations on who can purchase them.
Any investor looking to exchange wLITI for LITI can do so at a rate of 1 LITI = 5000 WLITI after passing the verification process. wLITI holders can lock up their tokens in the wLITI <> ETH liquidity pool on Uniswap to earn liquidity mining rewards. They also gain access to the bounty system and can participate in class action crypto lawsuits.
As a company dedicated to the blockchain and crypto space for the long run, LITI capital is making 5–10% of its investment available to fight crypto scammers and fraud through class action lawsuits. The team believes that for crypto to succeed and be viewed more favorably by the public, the notion that “crypto scammers can get away with anything” needs to be challenged. Anyone can report a scam to the Liti Capital team by sending an email to email@example.com.
If the underwriting conditions are met, Liti Capital will invite its member, who the reported scam has harmed, to validate the lawsuit by locking at least 1 LITI token in a dedicated pool. When validated, the Liti Capital team will pursue the case with its network of law firms and investigative capabilities.
Community members who provide valuable leads during a case can qualify for the case bounties. These are paid out to anyone that holds at least 1 LITI or 5000 wLITI and provides leads throughout a case lifecycle.
Overall, Liti Capital makes justice more accessible while empowering lower-income investors to benefit from the historically high returns on investments without sacrificing liquidity.
With the dual token structure, the team caters to those traders looking to invest in securities and traders who are more native to the world of DeFi.