Daily Fintech Conversations

Lykke equity for sale

@dailyfintechrocks, of course there are many other projects with at least partially similar goals, but if you take a deeper look: They are in fact very different. And what is also true for all: They all are just making it’s first steps. I don’t know of any project that is ahead and would have more traction than Lykke.

Bitsquares for example: If you take a look at the markets and skip through them - near to zero activity. And the overall volume is also lower than Lykke (it’s weekly, not daily).

But, I don’t even mean that critical against Bitsquares. It’s a different design (peer-2-peer) with a focus on privacy (tor-impementation). It’s okay to buy and sell Crypto but it’s slow and nothing for those who want to trade, and it becomes complicated if you want to use Fiat. The Crypto-part is exchanged over the network, while Fiat is exchanged as Bank-to-Bank-transaction between the Users. If there is a dispute they need an arbitrator. Simplified: It’s somehow an online-version of local Bitcoins. Useable but not very elegant and unlikely to get traction. There will be more elegant solutions in future.

There are other projects that want to build fully decentralized exchanges on own blockchains. But while some might look good on paper there is none I know that will make possible what will be possible on Lykke and none that already would have traction or be ahead in development. And it’s a safe prediction that many won’t have any chance (Heat for example - ICO in June and already doomed) and all will need a lot of time - more than Lykke, because they run on their own blockchains. And it won’t be easy to scale and to secure the chains, while Lykke utilizes the Bitcoin-Blockchain but also stays flexible. If another Blockchain should take over Bitcoin, Lykke can use that as well.

T0 might become one of the most serious competitor but it is also different (focus on the stock-market), and when it’s about traction: https://md.t0.com/md/market-data.html Pretty much nothing.

And Lykke will be much more: Cryptocurrencies, Forex, a lot of other kinds of values as digital assets (colored coin), crowdfunding-platform, money transfer, payment, debit card, prediction market, etc.

It will be fast and efficient like a centralized exchange while being secure and enabling direct ownership like a decentralized exchange, easy to use like Apple-applications and complementary to Bitcoin and the whole blockchain-space - the same on the other side when it’s about the established financial system. In my opinion it’s the logical next step.

And the question of value… like already mentioned above: It’s often controversial. But if compared to others, and not only on paper and promises but with focus on what is already achieved and it’s quality and progress - I don’t think it’s overvalued, especially not in comparison to others.

If you compare Lykke to a fully decentralized exchange like Bitsquare, then you will find that Lykke has a much better user experience, but Bitsquare is a fully decentralized exchange and Lykke is not. If you compare Lykke to a centralized exchange like Poloniex, you will find much greater traction at Poloniex with many millions of USD in volume every day compared to Lykke’s volume which seems to be in the ballpark of a few thousand USD daily.

So for me the question becomes, is there a place in the exchange market for a partially decentralized exchange such as Lykke? The obvious answer is “not yet” given its current volume. Whether there will be a place for it in the future I don’t know, but if decentralized exchanges like Bitsquare and others can improve their user experience then I don’t think so. Maybe that user experience can’t be improved and in that case I think a design such as Lykke’s has a lot of merit, but turning merit into traction is another mountain to climb.

@dailyfintechrocks, of course you can say: Lykke has not enough traction yet and draw conclusions out of that. And I would agree if Lykke would be fully developed and around since years, like Poloniex and Bitfinex etc. and nobody would care. But I don’t think it’s an argument, because one has to keep in mind that Lykke is in a very early stage, while they’ve already proven that they are able to build quality.

Regarding potential competitors: Of course it is a possibility that there will be fully decentralized exchanges with a much better user-experience than Bitsquare. But those exchanges need to be built first because there is none yet. And I don’t believe that there will be any fully decentralized exchange in years that will make possible what Lykke will make possible, when it’s about speed for example.

Another part are regulations. It won’t be easy for any exchange (including all the big ones) to keep track with Lykke when it’s about that. Then there is the forex-part and all what will go beyond being an exchange (payment, Debit Card etc.).

Plus, here is a nice impression how creative they are, how attractive they’ll be:

Box Options - preview:

You can think of Box-Options as a very intuitive short-term-trading-tool, nearly like a game.

Of course it wouldn’t be honest to say that it’s a safe bet that Lykke will be the or one of the leading exchanges in future. But do I believe the chance is high? Absolutely! I don’t say anyone should just believe me, but I always suggest to look deeper into it, because my experience out of feedback is: Those who do that begin to understand it’s potential - not only on development side and how attractive Lykke will be, and also how far they already are on business-side. This video for example wasn’t made just 4 fun:

Great explanation by Sergey Ivliev:

What is Lykke Forward?

The Crowdfunding was a huge success! :slight_smile:

Lykke Corp completes public offering of equity tokens in oversubscribed funding round

Maybe some might be interested in the two current projects on Lykke-Streams. It’s also a good example how Lykke gets new talents on board:

Some Background-Infos about Lykke-Streams:

Lykke Streams is a new contest platform for innovation. The goal is to connect people who want something done with those who want to do it. It is for the early, creative, explorative phases of a new project, not for final delivery.

Contest originators can post contests and offer rewards for completing them in phases. Developers, designers, and other professionals can work alone or in collaboration to try to earn awards.

Users can browse Lykke Streams without registering for an account. To post a contest or a response, you will need to download the Lykke Wallet mobile app and register, then come back and log in. You must be at least 18 years old to participate. This document explains how the platform works. (…)

Read more: Terms of Use

Blog-Article about Streams

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Two interesting articles:

About exchanges and security with some focus on Lykke:

Trading Cryptocurrencies and Digital Assets Securely

A “Lykke-progress-report”:

Lykke News Digest

Chronobank’s Time-Token is now listed on Lykke:

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Richard Olsen introduces Lykke Streams

Why Lykke is safe:

Lykke Announces OEM Services - Lykke Accelerator

Students of Finance around? Lykke offers an Internship in Zurich:

Summer Internship: Join Lykke Research Team

New research paper by by Richard Olsen, Anton Golub and James Glattfelder:

The Alpha Engine: Designing an Automated Trading Algorithm

Btw, Lykke has a public Slack-Channel now.

Fascinating stuff - for this geek.

Another very interesting article about the recent price-development, infos about how the market-algos work, what to expect and a lot more.

Why does Lykke Coin price go up?

So after the 20% drop over the last 24 hours, the actual marketcap of Lykke is ~$170m. I wonder if they could sell a private placement at that valuation.

I believe yes, demand would most likely be there and also from some with more money. If they would really do it - that I’m unsure of, because they plan to start the auction that is also mentioned in the blog-post in June. That will also include a price-finding-mechanism:

"Dutch auction will be launched as a special trading regime to improve price discovery and make it easier to trade large tickets. The mechanism works as follows: Investor A offers to invest 100’000 USD at a price 0.5 USD per LKK, investor B offers to invest 100 USD at a price of 0.45, investor C offers to invest 300 USD at a price of 0.4, investor D offers 300’000 USD at a price of 0.35, investor E offers to invest 600 USD at a price of 0.3, investor F offers to invest 599’000 USD at a price of 0.2, investor G offers to invest 2’000 USD at a price of 0.18, investor H offers to invest 500’000 USD at a price of 0.15. If Lykke would raise 1 Mio USD, then allocation would function in the following way. All offers are summed up top down….starting with the highest offer. Investors A, B, C, D, E and F are offering to invest a total of 1 Mio, so these investors would actually receive an allocation LKK. Important all the investors would end up paying the low price of 0.2 USD offered by investor F to buy the coins. They would not have to buy at the higher prices that they quoted in the bidding process."

Edit: New link for Slack (won’t expire)

Lykke CBDO will attend the St. Petersburg International Economic Forum