The world of assets is taking on a digital nature. To accommodate this transition, new exchanges have to be created where digital assets can be traded in a user-friendly and secure environment. Lykke, a Swiss-based digital exchange enabling peer-to-peer trades and second-by-second interest payments, is en route to becoming one of the big players in this sector.
Lykke Checks A Lot of the Right Boxes
The Lykke team envisions a bright future of trading digital assets through a global marketplace based on blockchain technology. All platform users can trade national currencies, cryptocurrencies, and cryptographic tokens through their mobile device. More importantly, the company charges no fees and puts a lot of focus on colored coins, which hold a lot of potential in the world of digital assets.
The way things stand right now, Lykke is well underway to become one of the world’s first regulated marketplaces using cryptographic technology. To celebrate the team’s achievements to date, a special event was organized in Switzerland on February 9, 2017. During this event, the company announced its proprietary 1-year forward offering, which is quite similar to forward contracts as we know them today.
At the same this, Lykke’s forward offering is very different compared to traditional forward contract. The instrument provided by Lykke runs for the entirety of the contract period. Traditional forward contracts are only settled on the settlement date. Providing second-by-second interest rates is quite a novelty in the financial sector, which makes Lykke a very unique and attractive platform. This special investment vehicle is only available until February 28, 2047, though.
As part of Lykke’s 1-year forward offering, investors can obtain a 20% discount subject to holding Lykke coins for one full year. The team plans to sell 50 million coins – priced at CHF 0.04 per coin – to raise close to 2 million Swiss francs. All issued coins are registered on the blockchain and a batch of 100 coins equals one Lykke share.
Lykke CBDO Demetrios Zamboglou stated:
“Genuine change in today’s financial services jungle can only be achieved through robust technology that serves the betterment of all, rather than just its gatekeepers. Lykke is committed to creating a means for anyone to conduct financial transactions and store their assets in secure digital blockchains, secured from any single authority or counterparty. Blockchain-powered crypto-currencies are actively demonstrating their superiority over the fiat-paper status-quo, for so long the bastion of big banks. Blockchain technology is here to show financial services as a sector that there is a better way, and there’s no turning back”.
It is important to note the Lykke project received US$2.8m in funding once the project was announced in 2015. Right now, the company is in talks with the FCA to receive an investment firm license for their multilateral trading facility. By focusing on national currencies, cryptocurrencies, and other digital assets, Lykke is well underway to appeal to different types of investors. With a centralized matching engine and a decentralized settlement system, Lykke holds all of the trump cards to disrupt the financial trading sector in the future.
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