Liti Capital, the Swiss-based litigation financing company that makes private equity investing accessible to everyone through blockchain technology, listed its wLITI token for the first time on HitBTC, a centralized exchange (CEX).
wLITI’s first CEX listing follows its recent listings on decentralized exchanges Uniswap and 1inch Exchange.
Having launched earlier this year, Liti Capital is already making waves in traditional investing by bringing litigation financing — an investment practice traditionally monopolized by hedge fund heavyweights and elite investors — to the masses.
“We are very excited to list on HitBTC,” said Jonas Rey, CEO of Liti Capital, adding, “This represents a major milestone toward our goal of leveling the playing field for litigation finance. Legal claims are an extremely appealing asset class because they can be so lucrative, and we provide a means for anyone to get in on this exciting investment opportunity.”
Founded in 2013, HitBTC is one of the oldest and largest spot-trading cryptocurrency exchanges in the world. It is well-known for its state-of-the-art matching engine, high-security measures and low trading fees. With a trading robot-friendly API and 24-hour customer service, HitBTC is a popular exchange with over 800 trading pairs and more than 400 spot instruments.
According to the HitBTC team, as a project that embodies a new paradigm for traditional investing, Liti Capital represents great potential. The exchange is proud to support an initiative that makes litigation financing, an attractive but prohibitive asset class, a viable investment strategy for every investor.
Putting traditional investing on the blockchain
Litigation financing is the practice of bringing in investors to cover the cost of a lawsuit or arbitration in exchange for a portion of the profit. Litigation financing specialists, such as Liti Capital, purchase litigation assets for cases they deem to have a high chance of winning.
While litigation financing often requires an initial investment of $500,000 to $1 million from an investor, Liti Capital makes it accessible for anyone with as little as $50. It does this by tokenizing shares in Liti Capital and paying out dividends to Liti Capital (LITI) equity token holders when a case in Liti Capital’s portfolio is won.
wLITI, or “Wrapped LITI” — the token listed on HitBTC today — is Liti Capital’s ERC-20 liquidity token. It doesn’t provide access to dividends as LITI does, but wLITI can be exchanged for LITI tokens at a ratio of 5000 to 1. However, both tokens give holders the power to vote on how Liti Capital assets are used to finance crypto fraud cases that affect Liti Capital community members, an initiative that the company is dedicated to allocating between 5% and 10% of its yearly investment budget for.
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Boasting a billion-dollar case portfolio
Liti Capital has already secured a healthy case portfolio with its largest case potentially worth more than $1 billion when it finally settles. Cases like these, which tend to be commercial rather than consumer or personal lawsuits, usually target large-scale corporate disputes valued at more than $10 million. While they could take years before a settlement is reached, successful litigation funders can expect to pocket between three and five times their initial investments, according to estimates by litigation finance expert Steven Friel.
To attain this goal, Liti Capital onboarded seasoned industry leader David Kay as chief information officer and executive chairman. Boasting more than a decade of experience as funding partner and portfolio manager of a billion-dollar private equity fund in the litigation financing space, Kay successfully enforced what was at the time the largest international arbitration award in history, bringing in over $1 billion in cash and securities.
“Litigation assets generally don’t correlate with the state of the economy, allowing litigation financing to thrive even in a bear market,” Kay explained, adding, “A relative newcomer to the modern investment ecosystem, litigation financing is expected to double in market value within the next six years. Our investment team at Liti Capital is actively seeking out the top opportunities in litigation assets, and aims to add at least five more multi-million dollar cases to our portfolio by this time next year.”
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