tempus, can you confirm that these 50m coins are not new issues and are instead coming out of the company's own longstanding LKK holdings?
Yes! The company sells shares that already exist - the total supply doesn't increase.
tempus, I know you are a reliable investor and user here since we used to exchange some messages about Factom for example. I bought some LKK at the previous ICO but sold right after when BTC rally started last year.
Now, honestly from what I remember there would be like +1 billion coins, so that's 10 million "shares" right? Taking in account 100 coins represent 1 share. So I have a couple of questions here...keep in mind that would not be the absolute total supply, I've read somewhere they will create more shares like any other companies do when they expand.
1) Why the need for such complicated system, just make a simple pair, 1 coin, 1 share? Excuse me my ignorance if this relates to something in particular.
2) The value of 1 share for Lykke equals 5 dollars right now basically then (this didn't move much since the ICO), that would make the actual marketcap for Lykke around 50 millions dollars right now? It's a little overvalued in my opinion but not outrageous considering the potential it has, however that will put it in the top 10 crypto projects.
Hi mtnsaa!
Yes, the Bitcoin-rise pushed also LKK a little bit down in between. I even expected Bitcoin to rise but decided not to sell because it never feels safe with all the blocksize-drama-war and China etc. I also didn't sell FCT.
But, to your questions:
Total supply is 1,285,690,000 Lykke Coin = 12,856,900 LKK shares, so it's even a little bit more. Total value is about $63 million.
Will ne Coins/Shares be issued in the future? Theoretically that is possible and back in September or October I've talked with Richard Olsen about that and he explained how it's usually done in companies. But some weeks ago (January) the same question was asked on Telegram and Sergey replied that there are no plans to issue new shares.
Just found the comment on telegram.
Quoting Sergey Ivliev: "there is no plans to increase number of shares of Lykke Corp, hence no "inflation" for Lykke coins"
1) I'm not totally sure why they've chosen the "100 LKK = 1 share - design", but I believe it's to make it also useful as currency including the possibility for micro-transactions. Lykke won't be only about being a trading-platform but will also focus on payment etc. (Debit Card is also planned). And one can think of Lykke-Coins as a useful Crypto-Currency while being backed because it represents ownership.
2) Like said above, the value is even a little bit higher. And that's often somehow controversial and I thought a lot about it myself before I've decided to invest. It's also kind of subjective and about the own strategy, but my view on Lykke is that while they are not loud like some others when it's about marketing, they really push the project forward. And compared with some other projects and teams behind, I believe the value is fair, even more when it's about future potential. If Lykke should be successful, and right now I don't see reasons to believe it won't be, there is not really a limit how it can grow into multiple spaces.
What is interesting, because you've also mentioned Factom: I believe to see some similarities but also very interesting differences. Similar is that both teams really focus on delivery. Both teams move step by step while avoiding "hype-on-promise". But in comparison to Factom, what always will be a "background-system" (but with high potential in my opinion) Lykke has much more potential to be attractive for potentially everybody and a lot of different use cases. I really believe that Lykke can go viral out of itself, maybe already in 2017.
And if we compare Lykke and Ripple for example: XRP, as a currency, is valued at $232,637,449 right now. I've never understood that valuation because even if a decentralized system, the whole project is pretty much centralized. XRP is under the line just a system-currency and unlike to LKK it doesn't represent ownership of the Ripple-Company.
Or if compared with some of the projects with similar goals, like Waves: $25 million marketcap right now. That's much cheaper of course, but Lykke is far ahead and especially the people behind are simply on another level.
And if we compare it to Factom: It's a shame that Factom is not already valued much higher! ;-) But I expect it to fly in 2017.
That's of course my personal view and no investment is ever totally safe or predictable. But in my opinion this is one of a very few pearls in the Blockchain/Crypto-Space while I'm very sure that about 99% will have no real chance. It needs so much expertise in a lot of different areas to get a project on a road to success - I think, that's underrated by a lot of teams and also a majority of Investors.
Best regards,
tempus
Thank you very much for such detailed explanation, well I invested in Iconomi ICO (and bought some more at 16k), luckily I took profit at the peak and sold all since I didn't considered it a long term investment, so I'm looking to actually commit to Lykke (I just had to sell during the ICO because BTC was about to blow, I was right!).
Anyway, I agree with you, the 100=1 ratio must be because LKK will also act as some form of currency and maybe that will bring some kind of stability to it. You can see how projects with more than 1 billion coins are much more stable (Ripple, Sia, Digibyte, Doge, lol).
I mentioned Iconomi because I'm afraid regulation will crush it and Lykke seems to have a very clear roadplan in the future and are based in Switzerland which is crypto paradise. I'm also looking for dividends pay tokens as you mentioned for long term too and while I can see a bright future in Ethereum, many of the current tokens are to underdeveloped right now and seem like a long shot and years away (Augur, Iconomi, First Blood, Maker Dao, upcoming MelonPort and Gnosis). Lykke is already working and the app is beautiful indeed.
The idea is also brilliant and will actually use btc blockchain for settlement which is to me one of the most important use cases (not being a currency or "storage of wealth" nonsense).
Yes, I absolutely agree. And speaking of similarities between Factom and Lykke I forgot to mention the point you speak about. Both use the Bitcoin-Blockchain as a base. Both are in a way complementary to Bitcoin that they can even be seen as helpful for some of Bitcoins problems. Scaling of course but also transaction-speed for example. And even more important: Both stay independent at the same time, can and will utilize also other Blockchains.
And it's kind of a fun fact that there are some Bitcoin-Maximalists out there who believe Bitcoin should be the only Blockchain and BTC the only currency and all projects with an own token should just die. They don't get, that exactly this design is a continuation of Bitcoin itself.
I believe that there will be "many" Blockchains and Cryptocurrencies in future that are connected, some will be more adopted and accepted than others, but the whole system together will be unbeatable. And a project like Lykke, without own Blockchain but utilizing all Blockchains that are relevant, will act like a revolving door in Crypto and beyond and into multiple economical use cases and spaces.
Others will do that as well of course and it will also be about competition. But this whole space is so young and there nearly endless room to grow, that it's a safe bet that quality will push through.
Btw, because in the end it's about the question if a project is a good investment or not: My own investment-strategy is also about the context, about the established system and what I believe is likely to happen (banking and currency crises "everywhere", especially in the EU). I focus on those projects I believe to be able to connect and grow into established use cases but also benefit of a possible downfall. And that's also best seen in Factom and Lykke, since both projects have a changing effect on the established system and both are likely to benefit from crises (others as well of course). But if we think especially about a currency crisis (Banks in the Eurozone and Euro itself could break) - what will people try and do? It will be about getting rid of the Fiat-currency, as fast as possible, and into something that is seen as safe haven. And Lykke offers exactly that. It is and gives choice.
Long story short: Projects like Lykke and Factom (and some others) just have to move on. Richard Olsen often says "go with the flow" and I believe that is really key. There is a dynamic for such projects. When we will look back in some years it' very likely in my opinion that we will say: "Timing couldn't have been better!". ;-)
