What Happened: Liti Capital, a Swiss-based litigation finance company, on Monday made its entrance into the world of retail crypto tokenization, with the launch of LITI, an asset-backed equity token.
Why It Matters: Litigation finance is the practice of buying a share of a court case. If won, token holders take a portion of the profits resulting from a case.
Further, buying a share of a case provides plaintiffs the funds to battle. Among other token holders, lawyers, which are hired by Liti Capital using the funds raised, also collect the awards of court cases, the assets that back the LITI token.
“We wanted to find a way to get everyone involved,” said Jonas Rey, Co-Founder and Managing Director of Liti Capital, “but how the financial markets are structured all but prevents that. The blockchain finally gave us the answer we were looking for.”
Other Developments: Liti Capital raised $12 million in cash and litigation assets from private investors, owns a share of 3 cases valued at over $200 million, and is ready to open up to a wider market.
Innovation Outlook: Long-term goals include helping to protect the crypto community, prosecute scammers, and return lost funds to token holders with the hopes of preventing these activities in the future and ensuring a safe environment for investment and innovation.
Liti Capital will spend between 5% and 10% of its investment capital investigating and funding litigation against scam tokens.
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