AMA: Ask Me Anything Session with LAToken (04.10.2017)

The LAToken Team is currently running a token sale. There was interest of the team to present this in our Altcoin Meetup. Because we don’t host ongoing ICOs, we offered the team an “Ask Me Anything Session” in our Altcoin Telegram Channel at Wednesday 4th October 2017. The community was very active in asking questions to three of the lead team members:

Mr. A, [04.10.17 21:00]

Good evening Ladies and Gentlemen. Welcome to Latoken-Team for our 1hour AMA session!

Pavel O., [04.10.17 21:01]

Hello everyone! Thanks for this opportunity to join "Ask me anything" session. My name is Pavel, Head of community management in LAToken. Within this hour we'll answer all your questions about our company. Follow these links to know more about LAToken:

https://sale.latoken.com

https://sale.latoken.com/white-paper

https://sale.latoken.com/faq/

Mr. B, [04.10.17 21:02]

is the LAToken a security?

Artem C, [04.10.17 21:02]

Hi, glad that we have opportunity to hold the session here. My name is Artem Chestnov

Pavel O., [04.10.17 21:02]

While we wait for your questions I'll tell you about our company: LAToken is a blockchain platform for creating and trading asset tokens. It allows cryptoholders to diversify their portfolio by getting access to tokens linked to the price of real assets. LAToken enables asset owners to unlock the value of assets by creating and selling their asset tokens. As a result, cryptocurrencies will be widely used in the real economy.

Pavel O., [04.10.17 21:03]

[In reply to Mr. B]

LAT is not considered as securities according to Howey Test.

Accordingly, LAT are available for purchase in order to access the LAT platform and to access investment opportunities available thereon. LAT are not to be purchased with a view to profit on potential appreciation of LAT themselves. LAT do not represent an investment contract in the LAT Platform. They do not represent a common enterprise as the LAT platform is already operational prio investor’s investment. LAT do not represent an investment contracts with an expectation of profits from the entrepreneurial or managerial efforts of others. All investments decisions are made directly by the holder of LAT, independent of other holders of LAT or the Management of the LAT platform. For more details please check our White Paper (section 9): https://cdn.latoken.com/common/files/whitepaper/latoken-whitepaper-en.pdf

Artem C, [04.10.17 21:04]

We represent LAToken together with Pavel here. I am now on the conference in Barcelona, if you happen to be here as well, would be glad to see you at our booth tomorrow

Pavel O., [04.10.17 21:04]

And there's good article on TechCrunch, proving that LAT is not a security : https://techcrunch.com/2017/09/14/sec-shows-support-for-icos-that-are-not-obviously-securities/

Mr. D, [04.10.17 21:04]

Hi guys and welcome, what is your definition of assets?

Pavel O., [04.10.17 21:07]

[In reply to Mr. D]

We always add new assets to our platform (operational already), right now you can find Real Estate, commodities, equities, debt and artworks there.

Mr. D, [04.10.17 21:07]

👍

Mr. A, [04.10.17 21:09]

Im a old Altcoin Guy. In the past there was for example Nxt with Colored Coins what got some combination with an Asset. Unfortunately the guys went away after some time. You have had the Colored Coins but no change to get the money. What is here? For example when I buy a Latoken that is a Swiss Real Estate. After the deal the seller refuses to give me the Real Estate. Do you think the Swiss Police will help me to get my property?

Pavel O., [04.10.17 21:13]

[In reply to Mr. A]

Good question, Mr. A! That's why there's a custodian in every deal between RE owner and buyers. Custodian will hold RE ownership until the settlement date, prevent double-sale and force RE to be sold on the fiat auction if RE owner won't be able to buy his asset back.

Pavel O., [04.10.17 21:14]

[In reply to Mr. A]

One more important thing: after buying these tokens you don't get ownership rights.

Mr. B, [04.10.17 21:14]

So the custodian is the real owner of the asset?

Pavel O., [04.10.17 21:15]

[In reply to Mr. B]

Custodian holds this right until the settlement date for each tokenized asset.

Mr. B, [04.10.17 21:16]

if i own a token, representing an asset. Lets say the custodian is seized by the local government. How do i claim my rights?

Mr. D, [04.10.17 21:16]

How do you certify the real value of the asset to be tokenized?

Pavel O., [04.10.17 21:17]

[In reply to Mr. B]

To avoid this risks we'll work only with Mr. Get leaders in every region. This will protect both sides of the deal

Pavel O., [04.10.17 21:21]

[In reply to Mr. D]

The sale price for tokenized real estate is determined at the auction on our platform. Starting price is set by an independent appraisal firm (accredited by LAToken). Same way with a custodian, this firm is chosen from the list on our platform (and paid from RE owner's wallet).

Mr. A, [04.10.17 21:22]

Can we do an Example to get the concept. Say for example I want to sell a nice flat in Zürich. Price is CHF 1m. How to get this deal done using LAToken? What are the benefits for me using LAToken?

Mr. A, [04.10.17 21:30]

If I find buyers for it 😉

Mr. E, [04.10.17 21:31]

Is there a risk that people misuse your platform to avoid taxes or for money laundry ? Could you use everything totally without fiat ?

Mr. C , [04.10.17 21:32]

Do you sell a flat in fractions? (why would anyone do that?) How do you prevent the equivalent of double spend (aka "double sell") from happening?

Pavel O., [04.10.17 21:33]

[In reply to Mr. A]

  1. Asset owner sells part of the asset to a LAT-certified custodian

  2. The custodian issues asset tokens linked to the asset value and sells them to cryptoholders

  3. Cryptoholders may sell the asset tokens on a secondary Mr. Get

  4. The asset owner buys back the asset tokens on the settlement date or the custodian sells the asset at a fiat auction and distributes the proceeds among the asset tokens’ holders

Mr. G, [04.10.17 21:34]

is there always a redemption date ?

Mr. G, [04.10.17 21:35]

if not, so I still life in the flat, sold it with LA Tokes. Do I now pay rent ?

Mr. C , [04.10.17 21:35]

[In reply to Pavel O.]

How is the title over the asset sold sorted legally? (make the exchange valid under law?)

Pavel O., [04.10.17 21:35]

[In reply to Mr. G]

Settlement date is a key detail of every deal with any asset.

Mr. G, [04.10.17 21:36]

is there a payoff for token owners ?

Mr. C , [04.10.17 21:37]

[In reply to Mr. C ]

The fact an asset can be tokenised does not imply, de facto or de jure, that the ownership title and exchange is valid, esp. with real estate as there are registration processes to fulfill.

Anna, [04.10.17 21:37]

[In reply to Mr. E]

Due to our role as a major international business, we pay serious attention to know-your client and anti-fraud issues in order to provide our customers and cryptoholders with a transparent business model that is safe with minimal risk. In order to ensure that our services are not utilized by unwanted and illegal elements to further their illegal motives, we intend to facilitate our operations by means of obtaining sufficient information about our clients and verifying customer identity; conducting ongoing due diligence of assets tradable on the LAT platform; highlighting suspicious customers and operations.

Pavel O., [04.10.17 21:39]

[In reply to Mr. C ]

That's why there's a 3rd party company in every deal - to protect every side.

Mr. C , [04.10.17 21:39]

[In reply to Mr. C ]

Would be great if you could answer how a "multiple selling" scenario is prevented through your approach.

Mr. C , [04.10.17 21:40]

[In reply to Pavel O.]

And how does a 3rd party, by virtue of simply being a 3rd party, ensure that? Don't understand that.

Pavel O., [04.10.17 21:40]

[In reply to Mr. C ]

Custodian will hold ownership rights until the settlement date. This will prevent double sale.

Mr. C , [04.10.17 21:42]

[In reply to Pavel O.]

So the "custodian" operates like a sort-of public notary. How then is that different from what can be done without resorting to tokenisation?

Mr. C , [04.10.17 21:43]

[In reply to Mr. C ]

In fact, a public notary provides guarantees (to some degree) by virtue of its license. Who's the "custodian" here?

Anna, [04.10.17 21:43]

[In reply to Mr. A]

These details will be set by an agreement with an asset owner and a tenant. There will be 2 options:

1) the owner can’t tokenize the part of the asset if the tenant occupies it

or

2) it could be done according to the agreement of the landlord and the tenant

Pavel O., [04.10.17 21:45]

[In reply to Mr. C ]

Liquidity and low transaction costs (from the seller's side).

Mr. C , [04.10.17 21:45]

What about "guarantees" from the buyer's end?

Mr. C , [04.10.17 21:46]

[In reply to Pavel O.]

Liquidity? How?

Pavel O., [04.10.17 21:47]

[In reply to Mr. C ]

The link between the token and the real asset is enforced by the trustee who holds the actual asset and technically issues the tokens.

Mr. C , [04.10.17 21:48]

Or do you envisage the seller to be able to transact the token to a 3rd party like being a derivative?

Pavel O., [04.10.17 21:48]

[In reply to Mr. C ]

Quick answer: it's always easier to sell something expensive to 1000 people instead of 1 only.

Mr. A, [04.10.17 21:48]

Need this deals to be settled with Tokens or could be FIAT used? What is the Use purpose of the Tokens?

Mr. C , [04.10.17 21:49]

[In reply to Pavel O.]

What do you mean to 1000? Why would anyone wish to hold 1/1000th of an asset such as a flat? The toilet bowl? The fixings?

Mr. C , [04.10.17 21:51]

[In reply to Pavel O.]

What is there that makes me "trust" the trustee?

Anna, [04.10.17 21:59]

[In reply to Mr. C ]

The trustee will be chosen upon the agreement between asset holder and LAToken platform, that is why you could trust him

Mr. B, [04.10.17 22:00]

Could the LAToken be seen as a standardised certificated suitable for mass trading?

Pavel O., [04.10.17 22:00]

[In reply to Mr. A]

  1. After the appraisal you have a fiat price PAID by LAT.

  2. LAT is a utility token used for trading real asset price-linked tokens on the LAT Platform.

Mr. C , [04.10.17 22:01]

[In reply to Mr. B]

That's what it looks like.

Mr. A, [04.10.17 22:02]

Thanks. I see you offer around x50 Leverage. How does this work and why you offer this? Looks a bit fishy in my view.

Mr. C , [04.10.17 22:02]

[In reply to Mr. A]

50x?

Pavel O., [04.10.17 22:04]

[In reply to Mr. A]

Our platform allows cryptoholders to diversify their portfolios. That's why we're offering trading tools useful for our users like x50 leverage.

Mr. B, [04.10.17 22:04]

[In reply to Mr. C ]

that the definition of a Security under Swiss law

Anna, [04.10.17 22:04]

[In reply to Mr. C ]

Yes, token represents an agreement, so it works like futures

Mr. C , [04.10.17 22:05]

[In reply to Mr. B]

In Swiss law and pretty much everywhere

Mr. B, [04.10.17 22:06]

so... is LAToken a security? because reading your docs and the AMA, it really looks like it. Why not embracing this fact, instead of trying to avoid this definition?

Mr. B, [04.10.17 22:10]

In your whitepaper: "Crypto Valley is a Swiss Federal Government supported project"

Do you have the link to this? i was not aware

Pavel O., [04.10.17 22:11]

[In reply to Mr. B]

https://blog.latoken.com/latoken-became-a-member-of-crypto-valley-in-switzerland-fc8429cf69a

Mr. B, [04.10.17 22:13]

"Crypto Valley is supported by the Swiss Federal Government and the Swiss Financial Mr. Get Supervisory Authority (Finma) "

Mr. B, [04.10.17 22:13]

i ve never heard this. Anyone has the link to FINMA PR?

Pavel O., [04.10.17 22:14]

[In reply to Mr. B]

There's a difference between LAT (utility token) and asset-backed tokens issued on LAT platform which may be considered as a security in some jurisdictions.

Mr. A, [04.10.17 22:15]

Very interesting

Pavel O., [04.10.17 22:16]

[In reply to Mr. B]

https://cryptovalley.swiss/about/

Mr. A, [04.10.17 22:16]

Is your ICO still ongoing? What amount have you reached so far?

Anna, [04.10.17 22:16]

[In reply to Pavel O.]

In some jurisdictions asset tokens can be considered securities. Offering of asset tokens in these jurisdictions shall be done pursuant registration as securities or under exemptions.

Mr. B, [04.10.17 22:19]

[In reply to Pavel O.]

mmh this is a bold statement from the association. It's very unheard of that FINMA is "supporting" . They can be discussing with, but "supporting"... unless they actually said so

Anna, [04.10.17 22:19]

[In reply to Mr. A]

Yes, it is still ongoing! You could check the status on our main page https://sale.latoken.com/. We have gathered almost 17.5 mil USD so far

Mr. C , [04.10.17 22:19]

[In reply to Mr. B]

Neither do I. Being in Crypto Valley does not, ipso facto, imply the Swiss Gov. supports it. What it supports is Crypto Valley, but there is no transitivity from that I presume

Mr. B, [04.10.17 22:22]

i would recommend to be cautious with such statement in your whitepaper. it provides a feeling of endorsement which does not exist

Mr. C , [04.10.17 22:23]

[In reply to Mr. B]

It's misleading, plain and simple. Sorry to be so bold.

Ms. F, [04.10.17 22:23]

If your token represents a fraction of a property (let's say you have 100 owners represented) - what is the entry in the land registry? all 100 owners?

Pavel O., [04.10.17 22:24]

[In reply to Mr. B]

TY for this comment, we'll double-check the statements with our lawyers.

Pavel O., [04.10.17 22:25]

This quote was taken from Crypto Valley's website: https://cryptovalley.swiss/about/

Mr. C , [04.10.17 22:25]

[In reply to Ms. F]

That was my Q earlier. And using what as proof of ownership? A digital token? That's like going to the Land Registry with a paper issued by my grocer saying I own 1/100th if a property round the corner.

Mr. C , [04.10.17 22:26]

[In reply to Pavel O.]

But thatms an endorsement of Crypto Valley, NOT of anyone deciding to set afoot there..!

Pavel O., [04.10.17 22:27]

[In reply to Mr. C ]

Asset tokens issued of LAT platform are based on the LAT protocol. LAT protocol ensures that the link between a token and the underlying asset is legally and technically enforceable, and enables P2P contractual rights transfer

Pavel O., [04.10.17 22:27]

OK, guys! 3 last questions

Anna, [04.10.17 22:27]

[In reply to Ms. F]

The token does not represent ownership in any way, the tokens are connected to the price of the asset, not the asset itself

Mr. C , [04.10.17 22:27]

It's as if I decide to create a Swiss Co. and register it there and then claim the Swiss Gov. is supporting/endorsing me. That's nonsense..!

Mr. A, [04.10.17 22:28]

[In reply to Pavel O.]

Agreed. Time is running out

Pavel O., [04.10.17 22:28]

[In reply to Mr. C ]

TY, noted. We'll check it.

Mr. B, [04.10.17 22:28]

(that one is unanswered) :)

Mr. B, [04.10.17 22:28]

[Forwarded from Mr. B]

so... is LAToken a security? because reading your docs and the AMA, it really looks like it. Why not embracing this fact, instead of trying to avoid this definition?

Anna, [04.10.17 22:29]

[In reply to Mr. B]

In some jurisdictions asset tokens issued at LAT platform can be considered as securities. Offering of asset tokens in these jurisdictions shall be done pursuant registration as securities or under exemptions. Once again, there is a difference between LAT which is a utility token and asset tokens issued on LAT platform

Pavel O., [04.10.17 22:30]

It was a pleasure to join AMA session in your group. I want to personally thank \@Mr. A for this opportunity. You can continue discussion in our public group (https://t.me/latoken) or in personal messages with me or Anna.

Useful links:

https://sale.latoken.com - official website

https://sale.latoken.com/faq - FaQ

https://sale.latoken.com/white-paper - White Paper

Mr. C , [04.10.17 22:30]

Thanks guys

Mr. D, [04.10.17 22:31]

Thanks guys

Mr. B, [04.10.17 22:31]

thank you

Mr. A, [04.10.17 22:31]

Thank you for participating! Have a good night Ladies and Gentlemen.