I was recently asked to take a look at the #LHCoin ICO. While many ICOs are fascinating in many ways, there are several interesting aspects about this particular ICO that seem quite notable:
- While most ICOs seem to be run by blockchain-related startups looking to raise capital for initial product development or the like, #LHCoin’s ICO is being run by Larson & Holz, an established multinational business that has been involved in currency trading for years. The ICO is intended to raise funds to develop a new cryptocurrency unit add on to the existing fiat currency trading business which will leverage the existing management team that is already experienced in operating a currency trading platform. All other factors being equal, this difference would appear to make the #LHCoin ICO less risky than many other ICOs.
- While the whitepaper that accompanies the ICO discusses that all funds raised will be returned to investors if the ICO fails to raise at least US $1-Million; the #LHCoin pre-sale has already raised more than that figure, so the ICO will succeed, and the risk of tying up money only to have it returned at a later date with no return on investment should be effectively nil.
- Unlike most ICOs, an existing business is guaranteeing a minimum appreciation rate of 20% per year for the tokens. This means that if one believes that Larson & Holz – a firm that notes that it has over 25,000 client accounts – is trustworthy to insure this rate of return, this ICO is both far less risky to principal than most other ICOs, and comes with a sizeable minimum return on investment – nearly 3 times the average rate of return of high yield corporate bonds.
- As a benefit unusual in the world of cryptocurrencies, holders of #LHCoin token are scheduled to eventually earn money separate from any appreciation of the tokens themselves. In a fashion somewhat analogous to a stock dividend, once the crypto-exchange begins to operate, a portion of the revenue from operations will be distributed to token holders. Because the use of cryptocurrencies allows for a greatly reduced cost to account holders when they transfer funds into accounts – many foreign exchange traders regularly pay 5-6% in fees for moving money into their accounts and encounter stiff regulations, limitations, and restrictions on top of that – the crypto-exchange can take 5% commissions on transfers in, while still bring priced competitively. That 5% will be distributed to token holders, with the exchange making its profit on trades.
- Unlike a startup that faces a stiff uphill battle in acquiring its first customers, Larson & Holz plans to market the new crypto-exchange to its existing client base. Furthermore, it may use the crypto-trading infrastructure to allow deposits via crypto currency into foreign exchange trading accounts – earning the 5% for the crypto-exchange in such scenarios as well.
- Unlike many ICOs in which any rise in the token price from the pre-ICO stage through the duration of the ICO is money in the cryptocurrency creator’s pocket, the #LHCoin ICO provides that the funds received from increases during this period are to be distributed in the form of ethereums to the investors who owned tokens prior to the increase. This means that if the ICO is successful, it is likely that early investors will achieve a much greater rate of return in a short period of time than they would have gotten in an equivalent typical ICO which lacks this payout to investors.
Of course, I am not a financial advisor and anyone investing in ICOs should perform his/her due diligence. But, the aforementioned features of the #LHCoin ICO do stand out, so check it out.
This post was sponsored by Larson & Holz.