The LHCrypto is designed to be a token that facilitates trading in the forex and brokering sphere and also include businesses with binary options too. The major concept behind the LHCoin is the mirroring of the traditional forex activities, only this time it is powered by cryptocurrency, as such it circumvents the bureaucratic hiccups experienced with regulations and jurisdictional purviews.
LH Crypto is an extension of the company Larson & Holtz IT Ltd, which is a registered business entity with the Vanuatu region. They are basically a forex and binary options broker. They have quite the experience in this financial sector spanning 13 years. Their idea of an ICO to initiate cryptocurrency into the forex and binary options trading, is rather ingenious, extending the very nature of currency types and opening new applicable and adoptable use for cryptocurrencies.
The major problems identified by this project are the restricted options when it comes to opening a forex trading account, this has been because of the limited currency types and pairs. Most people prefer to trade in the USD and EUR, which has made them rather more used in the forex market. However, this poses a challenge to those who are not allowed to trade freely with these currencies, especially those within nations with strict regulations and rules as to how to handle foreign accounts and currencies.
One other reason this project sees its creation of cryptocurrency intermediate forex trading activities as important is due to the high license and registration fees for those operating forex and binary options based businesses. This challenge is however unsurmountable as long as financial regulators oversee the trading of these financial assets within their jurisdictions. This problem constitutes huge expense burden on the company and impedes its growth and development, even the business sector as a whole.
Transaction fees from one bank to another are usually high and they can discourage a lot of prospective market players. For example, for each transaction, the fees are as high as 6% of the funds to be transacted each time. This makes centralized systems such as the bank gain more and at a loss to other stakeholders.
A final problem identified by the project is the difficulty in transactional processes from converting digital assets such as cryptocurrencies to fiat currencies. This problem is a deterrent such that, most of the values are lost in transactional processes especially by traders who are accustomed to fiat forex brokerage system. Which means every time they want to trade in forex, they would need to liquidate to fiat before they can begin trading on the forex platform.
Basically, one could say that the project has identified viable problems with the current forex market infrastructure, and indeed cryptocurrencies or blockchain as a whole can bring about solutions to these problems. However, considering the unregulated nature of crypto assets, and the pending standardization of the blockchain enterprise, it would be nice to see that a seamless transaction on the platform is done with crypto assets with a far less transaction fee and at a scope when jurisdiction is not an issue. But it’s an honest view to say that we are not in that utopic era of crypto usage yet. However, if they could pull through, it would be a great advantage to every forex trader out there.
It’s nice to see that the company wants to leverage their past experience as a brokerage company to set the standard for the new age of forex trading powered by cryptocurrencies. With the sudden high-rise in the worth of crypto assets and their continuous gain in popularity and usage, it is not surprising that many financial instruments are currently being backed by crypto assets, surge in tokenization of businesses, and expanding economic opportunities, have all contributed to the changing tides of the next generation of global financial liberty.
With cryptocurrencies which are not tied to any particular country, such as the one proposed by Larson & Holtz – LHCoin, a decentralized trading experience can be optimized by traders across the globe without fear of violating any juristic policies. On the other hand, the company will enjoy the privileges of not having to succumb to licensing and financial regulatory hurdles.
The cryptocurrency market as of now is speculative at best, this exceptional quality has attracted numerous market indices and players alongside. By establishing their new platform, Larson & Holtz may as well be digging in deep to attract more players from the currency trading mainstream.
Since they have an already established business, it would be fair to think of the whole project, as they trying to tokenize their already functioning business unit. And since they have a customer base, attracting the right clientele for the sponsorship of their project would not be so much as a hustle.
They have proposed a coin offering to raise funds to ease the establishment of the new crypto-based trading website. Their platform is built on the Ethereum network, and using the Ethereum ERC-20, they would conduct a crowdsale aiming at a soft cap of $1 million USD and a hard cap of $10 million USD by distributing 70 million LHCoin tokens off the 100 million LHCoin total tokens to be supplied.
Another unique feature of the platform is the cashback program, where 5% of trading activities which is commensurate to the fiat processing fees done by banks during traditional brokerage services is reinserted into the system as rewards to the investors of LHCoin project. Based on their estimation, the cashback funds will amount to $500,000 USD monthly once the project attains its full potential.
Moreover, they are bent on maintaining a nominal interest of 20% per annum, and are committed through several trading techniques that would be put in place by the company itself, and should there be a shortage, they would reimburse the system.
They have an MVP as a full fledged website that mimics how the final product will look like, although, the MVP is not currently associated with the blockchain, it does show how the client side interaction would look like to the user.
LHCoin token sale is divided into three stages, the Pre-ICO, and the Main sale and post ICO sale period. Each taking one month, for the Pre-ICO, it was scheduled for 30th of October to 2nd of December, 2017. The main sale was also scheduled to run from 04th December 2017 to 30th of December, 2017. While that of the post-ICO is to run from when the main ICO ends to the 1st of February, 2018. However, it was indicated that unsold tokens during the ICO stages will be burned, it somehow seems that they intend to achieve devaluation to increase the worth of the token once it hits the exchange market.
Since the distribution of tokens is to be executed through their smart contract, they would return all funds contributed if their soft cap isn’t achieved.
Apart from the 70% of tokens put up for crowdsale, they have chosen to distribute their remaining tokens thus:
Distributed among the exchange markets to which LHCoin tokens are brought 9%; they have a rather impressive approach for incentivizing the exchanges where LHCoin will be listed by making them shareholders of the company through the token offer.
The roadmap is rather simplistic and has no complex curvature. This is expected, seeing that the business has an already established functioning protocol on the ground, and they simply will be adjusting their business parameters to suit cryptocurrency functions. However, the most active aspect of the project as outlined by the roadmap is the first three steps of the project and the training of their staff to adapt to the cryptocurrency usage.
The only ambiguous entry on the roadmap would be the speculative assertion that the price of the LHCoin will double by November of 2018 with no specific baseline to support the gesture.
The Key Investor, John Larson, who is presumably the CEO of the project, other than his title and photo, no other information is presented on the website and no links to a professional biography. There are others on the top management team who presumably are contingent on the success of the project.
The entire team looks credible, with either a social media links or a professional profile, however, no proper description of their past achievements are documented on the website. But it would seem that they have quite the manpower to pull it off.
The LHCoin website is quite interactive and engaging, as the information presented on the site is quite succinct and colorful to attract any investor. Investors can acquaint themselves with the project by simply reading through the website because every information as contained in their whitepaper is well presented.
Their whitepaper is fairly professional, however, there are traces of missed translated text from the developers’ language to English. Also, there were some traces of grammatical errors most like due to translation hiccups.
Their active social media accounts would include Facebook, telegram, twitter, LinkedIn, slack, medium, Reddit, GitHub, bitcointalk and YouTube. They have quite the followership and support base to make their project successful.
They have a bounty program on bitcointalk and also a referral program for users to invite investors to the platform.
As for the investment security, they accept ETH as the basic investment type, however, they also accept funds in BTC and USD. Although, they do not have an escrow system to collect the funds, however, the smart contract is enabled to act as the escrow on behalf of the project and the investors. It would be wise for investors to observe due diligence and also follow news trends about the project before participating.