Lykke is a crypto-asset exchange platform built on top of the Bitcoin network. The Colored Coins protocol is used to issue securities backed by the value of real world assets. Users can issue stocks, company shares, or commodities backed tokens using fractional Bitcoins. These asset-backed “colored” coins are then traded on the decentralized Lykke exchange.
The marketplace will use the distributed ledger technology pioneered by Bitcoin to rewire the existing financial system for substantially greater efficiency and equality of access. Lykke will use the technology as a global notary service to record and settle any type of transaction.
Initially, Lykke will focus on foreign exchange, but plans to expand into money market instruments, bonds, equities, and so on.
Lykke Exchange Features
Lykke offers all of the following features in its mobile exchange:
• Mobile Support: The Lykke Wallet is available for iOS and Android for free.
• 0% Commission: it offers zero broker commission.
• Low Spreads: it has a matching engine with spread priority.
• Guaranteed Execution: Trade at human speed. Best execution guaranteed.
• Immediate Settlement: Your trade is settled in minutes.
• Direct Ownership: Guaranteed by the blockchain.
• 100% Security: Orders are approved by fingerprint. Your private key is stored on your device.
• Buy and Sell: The Lykke Exchange is the only place where you can buy and sell Lykke (LKK).
How does Lykke differ from other crypto ventures?
Lykke is not a cryptocurrency or distributed ledger technology venture; it is a marketplace that integrates seamlessly with the existing financial system. The trading venue uses a matching engine to cross buy and sell orders. The accounting, delivery, and settlement of traded assets use distributed ledger technology. The initial focus is the foreign exchange market with a daily transaction volume of 4 trillion USD, the biggest financial market in the world.
Trading With Lykke Exchange
The Lykke Exchange lets you enter the market with three main currencies: USD, CHF, or BTC. You can use these three currencies to trade for a diverse range of assets, including other fiat currencies, other cryptocurrencies, or shares in the company in the form of LKK.
Current coin Value: $0.370045
Market Cap: $96,663,287
Total Supply: 1,285,690,000 LKK
Circulating Supply 261,220,357 LKK
A Lykke coin (LKK) is a cryptographic token that represents ownership of Lykke. It is not a currency. There is no mining, and there are no other exchanges that accept it (although that may change). One hundred Lykke coins represents a single share of Lykke Corp.
Lykke shareholders are eligible to participate in annual shareholders’ meetings and cast a vote in decisions brought forward for shareholders’ consideration. Shareholders exercise voting rights in proportion to the number of Lykke coins in their possession. Voting results are rounded to full votes. The calculation of the necessary quorum to take a vote is based on the amount of all existing coins.
Lykke is working on building an in-app voting tool that will enable all Lykke shareholders to vote using their tokens. Votes will be held on major topics that the board deems appropriate or on those issues that are required in the bylaws. The goal is to give Lykke shareholders a say in all major decisions of the company.
According to the investor deck, the founder and team members own 64% of shares, the Lykke Corporation treasury owns 10%, seed investors own 22%, and ICO and post-ICO investors own 4%.
Can I still purchase Lykke coins?
Yes, the coins are traded on the open market of the Lykke Exchange. You can download the Lykke Wallet, deposit Bitcoins, send a SWIFT bank transfer or make a credit-card payment, and buy the coins on the Exchange page.
Who can legally buy these coins? This turns out to be a huge issue, as many coin offerings are in a gray area of the law. It also depends on which country’s laws apply — the seller’s or the buyer’s?
The United States is the country to worry about most. According to the IRS, if a company outside the US has an offering and does not in any way target American citizens, they can of course sell securities to non-Americans. But if Americans find these offerings on their own and invest, these securities are exempt from regulation. In general, investors from other countries face no issues and can purchase freely.
What if your company is based in the United States or Canada? Then you should have a look at the JOBS act and various equity crowdfunding regulations. If a coin represents ownership and is eligible for dividends, you should assume that a company’s coin is the same as its stock.
The Lykke Wallet
The Lykke Wallet, like most other exchange wallets, lets you store your cryptocurrencies while also trading those cryptocurrencies however you like. You’ll need to use the Lykke Wallet if you want to invest in different currencies over the Lykke Exchange, if you want to buy shares, or if you want to issue your own shares.
The Wallet is free to use, and the wallet has a 0% commission rate. You get started by downloading the app, registering your account, and then depositing funds from your bank card or via bank transfer.
One of the unique things about the Lykke Wallet is that Lykke will email you a signed refund transaction if the exchange is compromised. If the exchange experiences any type of difficulties, you’ll get your money back within two weeks.
Once you’re ready to withdraw money from the Wallet, you can withdraw it at any time without paying a fee.
Who is the team behind the project?
The team currently consists of twenty members in ten countries.
CEO Richard Olsen is an experienced entrepreneur and co-founder of OANDA, a currency information and exchange company. He is also a visiting professor at the Centre for Computational Finance and Economic Agents at the University of Essex.
COO Sergey Ivliev was named the 2016 IT Expert & Risk Manager of the year by the Risk Management Society of Russia. He is also a professor of Econometrics at Perm State University.
Lykke Exchange Conclusion
Lykke is a cryptocurrency exchange that has steadily grown in volume since launching in 2015. The Swiss-based exchange lets you buy and sell a variety of cryptocurrencies and fiat currencies – including unique options like the Swiss France (CHF) and Lykke coins (LKK).
You can trade over the mobile apps, available for iOS and Android, or through the official website at Lykke.com.
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