In our last blockbeers event we had some particular interesting discussions with the Co-Founder of Centrifuge and the founder of LUKSO. As we think the wider community might be interested in these topics we decided to create this blog and introduce you to both projects.
As most of you might know an Initial Coin Offering is a form of a token sale that takes place on a Blockchain. Put simply, an ICO is an smart contract that receives a cryptocurrency like Ether and sends a certain amount of tokens back to the same address. This process is usually atomic and definite.
Of course the original concept of an ICO with direct ownership, real-time settlement, transferability and potential 24/7 markets was very successful a few years back. But after a series of scams and projects which did not deliver any of the promises they made during their ICO it became clear that ICOs had several huge disadvantages. Two of them being the missing investor protection and little responsibility of the team for the project.
These problem are now solved by a concept invented by LUKSO called the Reversible ICO. The tokens are bought over time and every investor always has the freedom to stop buying tokens and is able to return his reserved tokens to the rICO Smart contract. This way projects can be judged by the community of the rICO and the investors are able to act in real time if expectations are not met.
The rICO runs for another 240 days and there are plenty of LYXe left. As the amount of available LYXe shrinks the price increases.
The Centrifuge Operating System is a decentralized platform to support a new generation of applications for the financial supply chain. A new product launched by Centrifuge is called Tinlake, a platform built this decentralized financial infrastructure, that enables you to draw loans against conventional illiquid assets.
Tinlake allows you to turn your non-fungible assets (for example real estate, music royalties and invoices), into fungible ERC-20 tokens, an easily priced and widely accepted asset in the DeFi landscape. Tinlake is enabled by a smart contract running on Ethereum that turns digital representations of real-world assets into ERC-20 tokens, which then gives access to decentralized lending protocols.
This allows businesses to create a new revenue stream from future royalties, unpaid invoices or a warehouse goods receipts. Thus, these businesses do not longer have to wait for liquidity which is paramount for exploring further business opportunities.
As you can see on the screenshot Tinlake is already being used. But this product is not only interesting for businesses but could also be a opportunity for privat persons to invest.
We have recorded the entire session with the founders of LUKSO and Centrifuge. The video includes further information of both projects so be sure to check it out!