Difference between revisions of "Initial Litigation Offering"
| Line 6: | Line 6: | ||
===LexShares=== | ===LexShares=== | ||
| − | LexShares was founded shortly after the JOBS act in 2014, creating a marketplace for defendants to receive funding from | + | LexShares was founded shortly after the JOBS act in 2014, creating a marketplace for defendants to receive funding from investors. This is primarily a digital medium used to fund plaintiff's cases and does not directly meddle in legal proceedings as they occur in court. LexShares has funded millions of dollars in cases and returns some settlement money back to investors as if the legal case were an asset. The primary aim of LexShares is to support smaller plaintiffs against larger defendants in cases where they see wrongdoing, and would believe the public also would sympathize with the plaintiff. The key selling point according to LexShares of their asset class appears to be the moral righteousness of the business and the fact that the litigation financing asset class is largely uncorrelated with the market and can prove to be a "safe haven" asset. Many major accredited investors both within and outside of LexShares have made large investments in litigation finance, leading to upside returns. |
==Use of Blockchain for Contracts== | ==Use of Blockchain for Contracts== | ||
Revision as of 18:47, 4 February 2022
Initial Litigation Offering is an offering of blockchain tokens, allowing funding and gamification of the US court systems. The US legal system can now be seen as an asset class with the utilization of blockchain technology to crowdfund litigation in cases where a defendant may be liquidity constrained. Crowdfunding legal efforts directly in courts is a fairly new phenomenon, beginning with the passing of the Obama JOBS act in 2012, leading to increased decentralization in funding efforts. Blockchain has entered this niche due to its inherently decentralized nature and ability to be used for high security encrypted contracts.
Contents
Rise of Litigation Financing
Obama JOBS Act
At the start of his second term, President Barack Obama signed the JOBS act, which aimed to reduce barriers to investment and spur startup growth across all industries. Part of this act involved allowing increased crowdfunding of investments by accredited investors, and securitizing these assets. Allowing micro-loans and crowdfunding granted equity in all investments, even in legal offerings. The Obama JOBS Act was not initially intended for such types of crowdfunding, but rather to help startups gain rapid equity investments through applications like Kickstarter, which aimed to secure small amounts of angel funding from family and friends, who could then send a link around to raise awareness and further funding. In the case of litigation financing, companies began to crowdfund defense efforts and those who agreed with the cause were able to donate. Yet because the financing required a specific equity investment, this opened up an opportunity to make investment gains through the court case as an asset by itself.
LexShares was founded shortly after the JOBS act in 2014, creating a marketplace for defendants to receive funding from investors. This is primarily a digital medium used to fund plaintiff's cases and does not directly meddle in legal proceedings as they occur in court. LexShares has funded millions of dollars in cases and returns some settlement money back to investors as if the legal case were an asset. The primary aim of LexShares is to support smaller plaintiffs against larger defendants in cases where they see wrongdoing, and would believe the public also would sympathize with the plaintiff. The key selling point according to LexShares of their asset class appears to be the moral righteousness of the business and the fact that the litigation financing asset class is largely uncorrelated with the market and can prove to be a "safe haven" asset. Many major accredited investors both within and outside of LexShares have made large investments in litigation finance, leading to upside returns.
Use of Blockchain for Contracts
Blockchain technology, which is immutable and encrypted, can be used to create unique tokens and coins for decentralized investment in various assets. Tokens and cryptocurrencies can be used to either create alternative currencies or a form of backing for a specific asset class.
Tokens Overview
Smart Contracts
Avalanche Labs
Apothio LLC vs Kern County et al
Ryval Labs and Kyle Roche
Ethical Concerns
Sources
https://ryval.market/ https://www.avax.network/ https://republic.com/apothio https://cryptoslate.com/initial-litigation-offerings-ilos-show-blockchain-isnt-a-solution-looking-for-a-problem/ https://www.institutionalassetmanager.co.uk/2020/12/15/293542/initial-litigation-offerings-bring-usd10bn-asset-class-avalanche-blockchain https://www.businesswire.com/news/home/20210127005148/en/2.47-Billion-of-Capital-Deployed-Last-Year-Across-U.S.-Commercial-Litigation-Finance-Industry-As-Growing-Sector-Weathers-Pandemic-Storm https://www.lexshares.com/?utm_campaign=Google%20Ads&utm_source=ppc&utm_term=LexShares&utm_term=lexshares&utm_campaign=LEXSHARES+%7C+Apr+2018&utm_source=adwords&utm_medium=ppc&hsa_src=g&hsa_ver=3&hsa_grp=54470404736&hsa_net=adwords&hsa_acc=5450014216&hsa_mt=e&hsa_cam=1348828778&hsa_kw=lexshares&hsa_ad=389384394214&hsa_tgt=kwd-314132464746&gclid=Cj0KCQiAosmPBhCPARIsAHOen-N6JaNTx8cMSgmakRSqXZaOQYdXDAaWVoTTc86CF68MlsoEyW4iMLYaAgfVEALw_wcB https://www.nytimes.com/2012/04/06/us/politics/obama-signs-bill-to-ease-investing-in-start-ups.html https://www.seedinvest.com/how-it-works/regulation-cf
