tempus, can you confirm that these 50m coins are not new issues and are instead coming out of the company's own longstanding LKK holdings?
Yes! The company sells shares that already exist - the total supply doesn't increase.
tempus, I know you are a reliable investor and user here since we used to exchange some messages about Factom for example. I bought some LKK at the previous ICO but sold right after when BTC rally started last year.
Now, honestly from what I remember there would be like +1 billion coins, so that's 10 million "shares" right? Taking in account 100 coins represent 1 share. So I have a couple of questions here...keep in mind that would not be the absolute total supply, I've read somewhere they will create more shares like any other companies do when they expand.
1) Why the need for such complicated system, just make a simple pair, 1 coin, 1 share? Excuse me my ignorance if this relates to something in particular.
2) The value of 1 share for Lykke equals 5 dollars right now basically then (this didn't move much since the ICO), that would make the actual marketcap for Lykke around 50 millions dollars right now? It's a little overvalued in my opinion but not outrageous considering the potential it has, however that will put it in the top 10 crypto projects.
Hi mtnsaa!
Yes, the Bitcoin-rise pushed also LKK a little bit down in between. I even expected Bitcoin to rise but decided not to sell because it never feels safe with all the blocksize-drama-war and China etc. I also didn't sell FCT.
But, to your questions:
Total supply is 1,285,690,000 Lykke Coin = 12,856,900 LKK shares, so it's even a little bit more. Total value is about $63 million.
Will ne Coins/Shares be issued in the future? Theoretically that is possible and back in September or October I've talked with Richard Olsen about that and he explained how it's usually done in companies. But some weeks ago (January) the same question was asked on Telegram and Sergey replied that there are no plans to issue new shares.
Just found the comment on telegram.
Quoting Sergey Ivliev:
"there is no plans to increase number of shares of Lykke Corp, hence no "inflation" for Lykke coins"1) I'm not totally sure why they've chosen the
"100 LKK = 1 share - design", but I believe it's to make it also useful as currency including the possibility for micro-transactions. Lykke won't be only about being a trading-platform but will also focus on payment etc. (Debit Card is also planned). And one can think of Lykke-Coins as a useful Crypto-Currency while being backed because it represents ownership.
2) Like said above, the value is even a little bit higher. And that's often somehow controversial and I thought a lot about it myself before I've decided to invest. It's also kind of subjective and about the own strategy, but my view on Lykke is that while they are not loud like some others when it's about marketing, they really push the project forward. And compared with some other projects and teams behind, I believe the value is fair, even more when it's about future potential. If Lykke should be successful, and right now I don't see reasons to believe it won't be, there is not really a limit how it can grow into multiple spaces.
What is interesting, because you've also mentioned Factom: I believe to see some similarities but also very interesting differences. Similar is that both teams really focus on delivery. Both teams move step by step while avoiding "hype-on-promise". But in comparison to Factom, what always will be a "background-system" (but with high potential in my opinion) Lykke has much more potential to be attractive for potentially everybody and a lot of different use cases. I really believe that Lykke can go viral out of itself, maybe already in 2017.
And if we compare Lykke and Ripple for example: XRP, as a currency, is valued at $232,637,449 right now. I've never understood that valuation because even if a decentralized system, the whole project is pretty much centralized. XRP is under the line just a system-currency and unlike to LKK it doesn't represent ownership of the Ripple-Company.
Or if compared with some of the projects with similar goals, like Waves: $25 million marketcap right now. That's much cheaper of course, but Lykke is far ahead and especially the people behind are simply on another level.
And if we compare it to Factom: It's a shame that Factom is not already valued much higher! ;-) But I expect it to fly in 2017.
That's of course my personal view and no investment is ever totally safe or predictable. But in my opinion this is one of a very few pearls in the Blockchain/Crypto-Space while I'm very sure that about 99% will have no real chance. It needs so much expertise in a lot of different areas to get a project on a road to success - I think, that's underrated by a lot of teams and also a majority of Investors.
Best regards,
tempus
