The blockchain boom has seen its popularity rise among the public thanks to extreme price rises for cryptocurrencies such as Bitcoin and Ethereum.
While profits have been the main focus for a very long time, people need to realize that the blockchain is an extremely valuable technology that is not only important in the future, it can also positively benefit humanity as we move on.
The blockchain can help facilitate truly decentralized applications or protocols, which means things like transactions and transfer of information can be done safely without a 3rd party without your information being stolen or compromised.
One such application of the blockchain is LAToken, the first multi-asset tokenization platform.
The purpose of LAToken (short for Liquid Asset Token) is simple yet important in the grand scheme of things.
Simply put, LAToken makes hard assets tradable in crypto, enabling cryptocurrencies to be widely used in the real economy.
For example, if you were to invest in real estate right now, you’d have to get a large amount of money for the lump-sum mortgage, go through tedious paper works and lawyers, and you’ll also have to bear a massive burden should the real estate market fail.
With LAToken, you can buy tokens – the analog of “shares” of the physical assets instead of paying a huge money upfront which is a massive gamble. This means you can potentially buy a fraction of an asset instead of buying the whole thing.
For example, someone can list, say, 10% of his apartment on the LAT Platform for $10,000. Then will be issued the tokens equivalent to the disposed part of the property. Let’s say 10,000 tokens at 1$ each. As a cryptoholder, you can buy a fraction of an apartment for as low as $1 instead of spending 6-figures on the whole thing.
LAToken is a universal platform where almost assets, ranging from equities and commodities to real estate and artworks, can be tokenized and traded via cryptocurrencies.
The platform is already operational: you can trade Apple, Amazon, Facebook and other shares as well as oil and Real Estate LAT backed by ETFs. LAToken also partnered with MyGold, a gold and silver manufacturing company and mint based in New Zealand, to give crypto holders a chance to add the most popular “safe haven” asset, to their portfolios, buying it with cryptocurrencies.
Asset owners usually face lots of problems, when they want to let go of their assets: achieving liquidity is tough. First, they would have to find someone who wants to pay 100% for what they’re selling. For most people, that is optimistic, to say the least, as financing and installment payments are preferred.
Next, there are physical constraints such as the location or time of the trade taking place. What if the asset owners and interested party are not in the same country? More commonly, what can traders do when the stock market closes?
This is where LAToken comes in. Since your assets can be divided into fractions and sold to multiple buyers, they can be bought easier and quicker, which means you get cash faster!
Going on with the apartment analogy above, getting 1,000 people to buy tokens equivalent for $1,000 in your apartment is much easier than going through the work of finding a buyer who is willing to pay $100,000 on the spot.
LAToken gives an alternative way of using your illiquid assets to get money. They enable partial tokenization and subsequent sale of real estate or other assets with minimum transaction costs of up to 0,01% in a timely manner – less than 1 week.
The platform’s 24-hour system also means that you don’t have to face the inconvenience of waiting for the perfect time to trade – you can do it virtually anytime and anywhere!
Be it real estate, Apple stocks or whatever asset you’re interested in, LAToken allows anyone to get exposure to hard assets via crypto. This gives a unique opportunity for cryptoholders to own fractions of previously illiquid assets accessible only to large investors.
LAT is the main cryptocurrency used to pay for LAToken services, such as assets tokenization, transaction costs etc. It is distributed during LAToken Token Sale.
Classified as a utility token, LAT is compliant with laws and regulations, which means US investors are allowed to participate in the ICO.
So far, more than 50 million LAT or an equivalent of $17 million have been raised as part of LAT Token Sale. The platform is expected to raise a total amount of $40m by the end of its ICO.
Statistically, LAToken is the best performing asset tokenization platform in terms of fundraising. The team is also in talks with several major exchanges to list LAT, which will strengthen its ecosystem further.
As consumers slowly shift from the norm of central authority (e.g banks, middleman, firms, etc.) to a community where privacy and trust are prioritized, businesses are exploring the possibilities of the blockchain to meet the modern consumer’s demands.
LAToken is bridging real and crypto economies by making real assets tradable in crypto. They allow crypto holders to diversify their portfolio by getting exposure to real assets via crypto.
Moving forward, LAToken may become one of the most important blockchain companies. Liquid Asset Token Protocol, that lies at the core of asset tokenization, allows anyone to tokenize assets. It establishes the link between the token and the underlying asset and enables a quick creation of customized asset tokens compliant for P2P trading on the LAT platform and crypto exchanges.
According to LAT Crypto Research, assets worth $1.2 trillion can be tokenized and traded on the LAT Platform by 2025, as the total cryptocurrencies capitalization can grow to $5 trillion.
To learn more about LAToken and its (soon to end) ICO, click here to visit their homepage!
LAToken: What makes it better than other platforms?
Above we looked at why LATokenis bound to disrupt the assets trading industry and we’ll be looking at why that may happen. We’ll also focus more on the benefits of LAToken and how it works under the hood for beginners.
1. LAToken secures all transactions on its platform via smart contracts
One of the biggest worries about real world trades are that scams or “flakes” can happen no matter how secure you keep your transactions.
Asset owners can cancel their offers at the last minute and some even go as far as faking transactions to scam sellers off their assets.
With the power of the blockchain, LAToken enforces smart contracts that work exactly how they sound. When a buyer and seller agree on the terms of a trade, the terms are technically and legally enforceable – all of it which is done automatically by the smart contract.
The blockchain also allows for contracts and rights to be signed and transferred peer-to-peer (P2P) automatically. A P2P transaction is much safer because there are no middlemen along the way to disrupt the trade.
Again, all of the terms of a trade on the LAT Platform are finalized by smart contracts which are written in code. Once a deal is agreed, neither the asset owners nor the cryptoholders can reject, modify, or delete the terms which make it fair and 100% safe for both parties.
Since there are no middlemen in play, transaction costs are dramatically lowered and the transfer of rights to an asset happens immediately.
2. LAToken enabling the fractional sale of the assets
LAToken unlocks the value of illiquid assets like real estate or artworks, enabling the fractional sale of the assets. You will get a chance to buy a small piece of a Picasso painting or a French castle with just $10 equivalent of LAT – the main currency used on the platform. This gives a unique opportunity for crypto holders to own fractions of assets previously accessible only to large investors.
3. Multiple assets are traded on LAToken
While the real estate market is a huge one for LAToken to disrupt, the platform also allows trading of other assets like stocks, loans, oil, and even precious metals.
Again, all of these assets are broken down into fractions, so crypto holders can buy parts of those assets instead of the whole thing.
LAT Crypto Research estimates, that total cryptocurrencies capitalization can reach $5tn by 2025. The growth can be driven by asset tokens, whose value is linked to real assets. As the first multi-asset tokenization platform, LAToken can tokenize and trade assets worth $1.2tn by 2025 with a turnover exceeding $14tn. Shares of Apple, Tesla and other blue chips, gold, oil and Real estate LAT backed by ETFs are already traded on LAT Platform.
This gives a unique opportunity for crypto holders to diversify their portfolios without converting to fiat.
4. LAToken is heavily regulated and audited by top firms around the world
As token sales spread like wildfire in the blockchain community, unfortunate things like scams or hacked crowdsales became common due to the unregulated nature of ICOs.
LAToken, being a company of such size and vision, does the right thing by ensuring that everything about its platform is secure.
Security-wise, LAToken team of experienced developers have implemented DDoS attack protections to safeguard the platform (and ICO) from going down. Secure smart-contracts and multi-factor authentication are also coded to ensure that users have their assets and money protected 100% from breaches and hacks.
All smart contracts and token sale documents are also audited by trusted 3rd-party firms to make sure that they are legit, secure, and fair for both the platform and its users.
LAToken independently appraises assets so that everything that is traded on the platform is transparent and verified. This means a seller cannot simply over-inflate his or her assets without verified information.
Users also get full transparency of transactions and asset information on LAToken: once the data is there, it will be there forever as information on the blockchain cannot be erased or modified.
To abide regulations, LAT Platform has KYC and AML procedures in place in an effort to protect the users of LAToken. Hence, first-time users may need to apply for relevant licenses depending on their location.
5. LAToken has an actual, working application already
Unlike other projects, LAToken already has a working platform in place. It has been up and running for a while, which means asset tokens can be created, listed, and traded on the LAT platform right now.
For example, tokenized blue chips’ shares (like Amazon and Apple) as well as commodities, like gold and oil, are already traded on the LAT platform at the moment of writing.
Trading of tokens linked to the price of illiquid assets, such as real estate and artwork, will be launched soon, as things get ironed out.
Other than trading on the platform itself, LAT wallet will also allow users to create and manage asset tokens, access smart contracts, and make transactions outside the platform.