[ANN] Lykke - Trade Bitcoin, Ethereum, FX and Digital Assets

[tempus]

When is end of summer?

And here comes the official announcement:


Ether Cryptocurrency Now Available on the Lykke Exchange

(...)

As of today, all Lykke users will be able to trade ether against all other tokens and currencies in the Lykke exchange. Lykke’s engineers are now working on tokens. By end of summer, Lykke will be an ERC20-token wallet and will be able to engage with all smart contracts on the Ethereum blockchain.

Ethereum has seen a dramatic rise and acceptance as the base currency for most tokens. With the Bitcoin-based Open-Assets tokens Lykke has offered previously and now the addition of Ethereum-based tokens, Lykke will be able to offer more than 95 percent of all cryptographic tokens on the market. The availability of existing ERC20 tokens and on boarding process for new tokens will be announced by end of summer.

(...)

https://www.lykke.com/company/news/ether

It's hard to give fixed dates as ETA's. But I believe it can be understood as "late Q3". 

[tempus]

hi Lykees.
ex me if i misunderstood something but anyway...
how can "Bitcoin refund transaction" be use in emergency situation?
ref: [refund_transactions](https://www.lykke.com/refund_transactions)
when I install android app the refund address set to my private wallet color coin address while it should be "Bitcoin refund transaction".
and also we need the private key to fill a transaction, how could one find it from seed or any files from app?
thanks

The Lykke-trading-wallet is a multi-signature-wallet. That means that the customer holds one private key, Lykke holds the other one. For usual transactions both keys are required. The refund transaction requires only your key. That it's a colored coin - address shouldn't be a problem.

But I'll ask and let you know once I have a reply!

[gamer455]

Latest e-mail by Richard Olsen and Sergey Ivliev, founders of Lykke:

Ether is on Lykke

We are happy to make Ether available for trade in Lykke Wallet with Ethereum fully integrated to Lykke Exchange settlement process.


Lykke smart contract has 2-of-2 multisignature set up, so that every transaction such as trade or withdrawal needs two signatures: by the client's and by the exchange's private key. The contract holds segregated clients balances and provides a mechanism to guarantee funds recovery if the exchange goes offline.

Check out our CTO's recent blog post, where the Ethereum integration is explained, and the smart contract code on Github.


Offchain Settlement 

We have deployed offchain settlement at Lykke Exchange.
Users can now securely complete trades in state channels, that are opened between the client and the exchange.

The Bitcoin blockchain was built to process about seven transactions per second. That translates to a settlement time of about 10 to 30 minutes per trade, and impose significant limitations for the exchange capacity to settle trades.

Offchain settlement allows to overcome this limitations without compromising the security. The counterparties freeze funds as a collateral on the blockchain and provide the so-called commitments to each other. When both parties agree to the terms of the new trade then commitments are updated. Commitment transaction can be broadcasted at any time on the blockchain to get frozen funds back and close the channel.

Read our Offchain Settlement FAQ

 

Lykke Regulated Entities

Demetrios Zamboglou, Lykke CBDO:

EU Broker license update
Our application for European Investment Firm (CIF) license for Lykke Cyprus Ltd. is on the fast track at CySEC (Cyprus Securities and Exchange Commission). The team is preparing an official response (answers and additional documents) to the first letter recently received from CySEC.
 
EU Electronic Money Institution license update
The application for EMI is ready to be submitted to the Central Bank of Cyprus (including a pledge of 350,000 Euro Capital Requirement). Lykke EMI is engaged with various banks for supporting the payment processing strategy. New systems and controls are now in place – pending activation for electronic payments.
 
UK MTF license update
The MTF (Multilateral Trading Facility) package is facing some new delays due to the updated FCA requirements for UK based MTF. We are updating the IT Strategy document and the application package to match the new requirements of the FCA.
 
Margin trading update
The final release of the Lykke platform for margin trading is awaited in June for a limited list of jurisdictions under Vanuatu's Dealer in Securities license. Traditional leveraged FX & CFD products will be extended by BTC and ETH trading.


Michael Klena, Director of Lykke US:

US has fragmented regulations, in that different products are overseen by different regulators. And each regulator has different levels of approval, depending on trust/experience with the regulator and capital segregated. 

Lykke's approach is like climbing a ladder. We will get approval for the lowest levels first.  Then we can apply for higher & higher regulation approvals. This takes time, but it is the best way to achieve our goals.

Applications have already been submitted to SEC, US Treasury and IRS with CFTC and OCC to follow shortly. We expect our first approvals for a very limited set of products by the fall. Each quarter we expect to add more & more products as approvals come in. By the end of 2018, we expect to be able to trade everything that Lykke offers.

Seamus Donoghue, Director of Lykke Singapore:

We have a new addition to the team in Singapore - Venky Sethuraman has joined us and as the former head of equities with Standard Chartered and previously Citibank brings us great institutional experience that we can leverage across the region.
 
We are in the final stages of choosing legal council to assist us with our Singapore regulatory applications to enable us to launch a fully tokenized securities exchange. This would allow us to handle security related ICO/ITOs as well as provide a venue for secondary trading. It has been challenging to find firms that have any in-depth understanding of tokenized assets but we have managed to narrow it down to a strong shortlist. Given the local Singapore retail market is relatively small, our initial licensing will be for accredited investors and institutions as this will allow us to provide services  to the large institutional pools of private wealth in Singapore. Once the application process has begun, we expect the process to be completed in roughly 8-10 months. We will look to partner with local incumbents to tap into the Singapore retail market.

As we prepare our regulatory applications for securities trading we expect to roll out crypto and tokenized FX products in the 3 to 4 months assuming that the legal opinion that this will not jeopardize our regulatory applications. That legal opinion should be confirmed shortly. The launch of the Singapore wallet will enable all retail investors to access the FX and cryptocurrencies, while securities, once we obtain regulatory approval, will only be available to accredited investors. We are in the process of working with compliance partners to gap our AML and KYC policies to MAS standards and ensure our Terms and Conditions are consistent with Singapore Law. We expect to announce a launch date in the coming month.


Annual Coinholder Meeting

We are proud to have more than 3'000 Lykke coin holders from 87 countries today. Each 1 LKK embodies an entitlement to the 1/100th of a Lykke company share. We plan to hold our annual meeting digitally on the 29th of June, 15:00 Zurich time. The link will be sent out in advance. We will report for the first year of operations, provide insights on our new projects and initiatives, and answer your questions.

Blog Post: http://lykkex.us12.list-manage.com/track/click?u=c9fb788cc123f23b892b90527&id=c31f4757c1&e=5c95fc7590

Smart contract code on Github: https://github.com/LykkeCity/EthereumApiDotNetCore/tree/master/src/ContractBuilder/contracts?utm_source=Lykke+Times&utm_campaign=2c7832b477-Lykke_Times_216_9_2017&utm_medium=email&utm_term=0_6bf990e94a-2c7832b477-109659829

Offchain Settlement FAQ: https://www.lykke.com/city/blog/lykke_offchain_settlement?utm_source=Lykke+Times&utm_campaign=2c7832b477-Lykke_Times_216_9_2017&utm_medium=email&utm_term=0_6bf990e94a-2c7832b477-109659829

Try it out guys
Lykke Wallet on iOS: https://itunes.apple.com/de/app/lykke-wallet/id1112839581?mt=8
Lykke Wallet on Android: https://play.google.com/store/apps/details?id=com.lykkex.LykkeWallet&hl=de

[Enre]

Pretty good platform you have here Lykke.
First of all, I'd like to ask, with 0% Commission, what could you possibly be making money off of?
There must be a reason as to why people would invest in you in the first place am I right?

I have been lurking here recently, and I will consider being part of the Lykke family once it migrates to Ethereum

Regards!

[tempus]

Pretty good platform you have here Lykke.
First of all, I'd like to ask, with 0% Commission, what could you possibly be making money off of?
There must be a reason as to why people would invest in you in the first place am I right?

I have been lurking here recently, and I will consider being part of the Lykke family once it migrates to Ethereum

Regards!

Ethereum is already integrated! I'll post another article with more infos about it right after this Post.

About your question regarding the business-model:

The short version is that Lykke will act as marketmaker and adjust it's own algorithms to make money out of the spread(s) and volatility. Lykke will also be a crowdfunding-platform for other projects and become a payment-provider, including debit card.


This is a reply on a similar question from Richard Olsen on reddit:


"yes, our business model is to earn money as a market maker. In this context I want to mention that we will create investment products, whichLykke customers can invest in. The funds of these investmetn products will be used for market making. If market making is done with our own funds, we earn 100% of the profits, whereas with the investment products Lykke earns the performance fee.
Lykke is on a rapid innovation path and we will release products that will be game changers for the industry: margin based trading across all asset classes on blockchain, boxoption - a highly intuitive tservice to trade short-term price moves, borrowing and lending service powered by a new securities lending model. We will offer these services fully regulated, which enables us to aggressivley market our services across the globe. The growh and profit potential for Lykke is huge."
https://www.reddit.com/r/lykke/comments/5u9auy/if_lykke_doesnt_take_fees_for_anything_how_they/

[tempus]

More infos about the Integration of Ethereum on Lykke:


Lykke Wallet Ethereum Integration
https://www.lykke.com/city/blog/lykke_wallet_ethereum_integration

[chanmaleng]

Pretty good platform you have here Lykke.
First of all, I'd like to ask, with 0% Commission, what could you possibly be making money off of?
There must be a reason as to why people would invest in you in the first place am I right?

I have been lurking here recently, and I will consider being part of the Lykke family once it migrates to Ethereum

Regards!

Ethereum is already integrated! I'll post another article with more infos about it right after this Post.

About your question regarding the business-model:

The short version is that Lykke will act as marketmaker and adjust it's own algorithms to make money out of the spread(s) and volatility. Lykke will also be a crowdfunding-platform for other projects and become a payment-provider, including debit card.


This is a reply on a similar question from Richard Olsen on reddit:


"yes, our business model is to earn money as a market maker. In this context I want to mention that we will create investment products, whichLykke customers can invest in. The funds of these investmetn products will be used for market making. If market making is done with our own funds, we earn 100% of the profits, whereas with the investment products Lykke earns the performance fee.
Lykke is on a rapid innovation path and we will release products that will be game changers for the industry: margin based trading across all asset classes on blockchain, boxoption - a highly intuitive tservice to trade short-term price moves, borrowing and lending service powered by a new securities lending model. We will offer these services fully regulated, which enables us to aggressivley market our services across the globe. The growh and profit potential for Lykke is huge."
https://www.reddit.com/r/lykke/comments/5u9auy/if_lykke_doesnt_take_fees_for_anything_how_they/

Since margin based trading is a near term goal, is there ETA for it?

[tempus]

Pretty good platform you have here Lykke.
First of all, I'd like to ask, with 0% Commission, what could you possibly be making money off of?
There must be a reason as to why people would invest in you in the first place am I right?

I have been lurking here recently, and I will consider being part of the Lykke family once it migrates to Ethereum

Regards!

Ethereum is already integrated! I'll post another article with more infos about it right after this Post.

About your question regarding the business-model:

The short version is that Lykke will act as marketmaker and adjust it's own algorithms to make money out of the spread(s) and volatility. Lykke will also be a crowdfunding-platform for other projects and become a payment-provider, including debit card.


This is a reply on a similar question from Richard Olsen on reddit:


"yes, our business model is to earn money as a market maker. In this context I want to mention that we will create investment products, whichLykke customers can invest in. The funds of these investmetn products will be used for market making. If market making is done with our own funds, we earn 100% of the profits, whereas with the investment products Lykke earns the performance fee.
Lykke is on a rapid innovation path and we will release products that will be game changers for the industry: margin based trading across all asset classes on blockchain, boxoption - a highly intuitive tservice to trade short-term price moves, borrowing and lending service powered by a new securities lending model. We will offer these services fully regulated, which enables us to aggressivley market our services across the globe. The growh and profit potential for Lykke is huge."
https://www.reddit.com/r/lykke/comments/5u9auy/if_lykke_doesnt_take_fees_for_anything_how_they/

Since margin based trading is a near term goal, is there ETA for it?

Technically Margin Trading is ready and could already be released. It's about the regulatory-side and that's not easy to predict, so no ETA yet.

[playingpoodles]

I noticed Lykke's price on coinmarketcap over the past couple of days went down from 0.395 to around 0.383 and yet the marketcap rose from around 56 million to 61 million despite the lower price per coin.

Has there been an employee bonus distribution or something that has increased the circulation of the coin?

[RustyShackleford1950]

I noticed Lykke's price on coinmarketcap over the past couple of days went down from 0.395 to around 0.383 and yet the marketcap rose from around 56 million to 61 million despite the lower price per coin.

Has there been an employee bonus distribution or something that has increased the circulation of the coin?

I don't believe circulating supply (which is what coinmarketcap uses) has increased. Though I'm not certain. If it has increased, it's increased minimally.

In any case, I wish coinmarketcap would use the total supply, and not the circulating supply, it's very misleading.

[tempus]

I noticed Lykke's price on coinmarketcap over the past couple of days went down from 0.395 to around 0.383 and yet the marketcap rose from around 56 million to 61 million despite the lower price per coin.

Has there been an employee bonus distribution or something that has increased the circulation of the coin?

I don't believe circulating supply (which is what coinmarketcap uses) has increased. Though I'm not certain. If it has increased, it's increased minimally.

In any case, I wish coinmarketcap would use the total supply, and not the circulating supply, it's very misleading.

I think the best chart is brave-new-coin - much more precise (gives a lot of infos by moving over it with the mouse) and they display the total:

https://bravenewcoin.com/lykke#Trading-Pairs


Regarding the circulating supply: They move more into the trading wallets. Richard Olsen made a post about the supply and how it's handled, also about the value on reddit:


"Thank you for all the comments about the valuation of Lykke.

Coinmarketcap computes the market capitalization of Lykke based on the coins that are held in the trading wallets and does not include the coins held in other wallets. When Lykke was founded and started the first rounds of fund raising, the coins were issued to other wallets, because the trading wallet was not yet developed. In June we will move all the Lykke coins to the trading wallet. If the price of LKK does not change and remains at 0.374716 USD the total market capitalisation will jump to 481,772,471 USD.

Every buyer of LKK needs to be aware that the Lykke project is high risk – we are reinventing finance and build an emergent organization that is inspired by the principles employed by nature and where all the software and knowledge is open source. We will make mistakes and these mistakes can be costly, so there is risk and any investor should only buy LKK, if he can afford to lose his money.

What is the appropriate valuation of LKK?
LKK is not just a normal crypto currency that can be used to make payments. LKK is also a share participation in Lykke Corp and entitles to dividend payments, when Lykke earns a profit. 1 LKK represents a share participation of 0.0000000778% of Lykke Corp to be exact.
Lykke is more than a regular stock exchange, because we will be one of the liquidity providers on the exchange and will ourselves offer investment products for our users to invest. In addition, we have our accelerator business, where we help incumbents to retool their business and move to blockchain. We are acquiring the regulatory approvals to turn the Lykke marketplace into an industry strength organisation that institutions can use. There is a lot of upside for the Lykke business model. An increase of the LKK price is positive for us, because it makes it easier to fund our expansion plan and attract top talent.

Lykke does not have any shareholder agreements, etc. preventing investors to sell their LKK. This strategy is in line with my approach to build a fragile company – my reasoning is as follows: If investors can at any time sell their coins, then selloffs will be spread out over time and are helpful warning signals for the company. We have seen a few early investors selling, which has slowed the upmove of LKK but was easily absorbed by other investors. We are observing a rapid increase of daily liquidity in LKK (yesterday 1 Mio USD). This is a healthy development that will cushion strong sell offs."
https://www.reddit.com/r/lykke/comments/6fvxqc/50m_market_cap/dipmw4u/

[Zer0p0inT]

Is Lykke on any exchange?

[kadscuk]

I noticed Lykke's price on coinmarketcap over the past couple of days went down from 0.395 to around 0.383 and yet the marketcap rose from around 56 million to 61 million despite the lower price per coin.

Has there been an employee bonus distribution or something that has increased the circulation of the coin?

I don't believe circulating supply (which is what coinmarketcap uses) has increased. Though I'm not certain. If it has increased, it's increased minimally.

In any case, I wish coinmarketcap would use the total supply, and not the circulating supply, it's very misleading.

I think the best chart is brave-new-coin - much more precise (gives a lot of infos by moving over it with the mouse) and they display the total:

https://bravenewcoin.com/lykke#Trading-Pairs


Regarding the circulating supply: They move more into the trading wallets. Richard Olsen made a post about the supply and how it's handled, also about the value on reddit:


"Thank you for all the comments about the valuation of Lykke.

Coinmarketcap computes the market capitalization of Lykke based on the coins that are held in the trading wallets and does not include the coins held in other wallets. When Lykke was founded and started the first rounds of fund raising, the coins were issued to other wallets, because the trading wallet was not yet developed. In June we will move all the Lykke coins to the trading wallet. If the price of LKK does not change and remains at 0.374716 USD the total market capitalisation will jump to 481,772,471 USD.

Every buyer of LKK needs to be aware that the Lykke project is high risk – we are reinventing finance and build an emergent organization that is inspired by the principles employed by nature and where all the software and knowledge is open source. We will make mistakes and these mistakes can be costly, so there is risk and any investor should only buy LKK, if he can afford to lose his money.

What is the appropriate valuation of LKK?
LKK is not just a normal crypto currency that can be used to make payments. LKK is also a share participation in Lykke Corp and entitles to dividend payments, when Lykke earns a profit. 1 LKK represents a share participation of 0.0000000778% of Lykke Corp to be exact.
Lykke is more than a regular stock exchange, because we will be one of the liquidity providers on the exchange and will ourselves offer investment products for our users to invest. In addition, we have our accelerator business, where we help incumbents to retool their business and move to blockchain. We are acquiring the regulatory approvals to turn the Lykke marketplace into an industry strength organisation that institutions can use. There is a lot of upside for the Lykke business model. An increase of the LKK price is positive for us, because it makes it easier to fund our expansion plan and attract top talent.

Lykke does not have any shareholder agreements, etc. preventing investors to sell their LKK. This strategy is in line with my approach to build a fragile company – my reasoning is as follows: If investors can at any time sell their coins, then selloffs will be spread out over time and are helpful warning signals for the company. We have seen a few early investors selling, which has slowed the upmove of LKK but was easily absorbed by other investors. We are observing a rapid increase of daily liquidity in LKK (yesterday 1 Mio USD). This is a healthy development that will cushion strong sell offs."
https://www.reddit.com/r/lykke/comments/6fvxqc/50m_market_cap/dipmw4u/

Ok so according to this, they are going to move ALL the lykke coins into the trading wallet, meaning the supply of coins will be flooded big time.

Which tells me that the project will be overvalued in many people's eyes (the free market), leading to a substantial drop in price

I am selling all my LKK immediately and will wait until the dust settles before re-buying again. There is no need to flood the market with so many coins whatsoever

This move isnt respecting the investors who bought LKK on the Lykke trading wallet..its making a mockery of them

I believe Richard Olsen realises he made a mistake and is trying to correct it before the situation gets much worse

[doctor-s]

Is Lykke on any exchange?

Lykke is the exchange

[doctor-s]

I noticed Lykke's price on coinmarketcap over the past couple of days went down from 0.395 to around 0.383 and yet the marketcap rose from around 56 million to 61 million despite the lower price per coin.

Has there been an employee bonus distribution or something that has increased the circulation of the coin?

I don't believe circulating supply (which is what coinmarketcap uses) has increased. Though I'm not certain. If it has increased, it's increased minimally.

In any case, I wish coinmarketcap would use the total supply, and not the circulating supply, it's very misleading.

I think the best chart is brave-new-coin - much more precise (gives a lot of infos by moving over it with the mouse) and they display the total:

https://bravenewcoin.com/lykke#Trading-Pairs


Regarding the circulating supply: They move more into the trading wallets. Richard Olsen made a post about the supply and how it's handled, also about the value on reddit:


"Thank you for all the comments about the valuation of Lykke.

Coinmarketcap computes the market capitalization of Lykke based on the coins that are held in the trading wallets and does not include the coins held in other wallets. When Lykke was founded and started the first rounds of fund raising, the coins were issued to other wallets, because the trading wallet was not yet developed. In June we will move all the Lykke coins to the trading wallet. If the price of LKK does not change and remains at 0.374716 USD the total market capitalisation will jump to 481,772,471 USD.

Every buyer of LKK needs to be aware that the Lykke project is high risk – we are reinventing finance and build an emergent organization that is inspired by the principles employed by nature and where all the software and knowledge is open source. We will make mistakes and these mistakes can be costly, so there is risk and any investor should only buy LKK, if he can afford to lose his money.

What is the appropriate valuation of LKK?
LKK is not just a normal crypto currency that can be used to make payments. LKK is also a share participation in Lykke Corp and entitles to dividend payments, when Lykke earns a profit. 1 LKK represents a share participation of 0.0000000778% of Lykke Corp to be exact.
Lykke is more than a regular stock exchange, because we will be one of the liquidity providers on the exchange and will ourselves offer investment products for our users to invest. In addition, we have our accelerator business, where we help incumbents to retool their business and move to blockchain. We are acquiring the regulatory approvals to turn the Lykke marketplace into an industry strength organisation that institutions can use. There is a lot of upside for the Lykke business model. An increase of the LKK price is positive for us, because it makes it easier to fund our expansion plan and attract top talent.

Lykke does not have any shareholder agreements, etc. preventing investors to sell their LKK. This strategy is in line with my approach to build a fragile company – my reasoning is as follows: If investors can at any time sell their coins, then selloffs will be spread out over time and are helpful warning signals for the company. We have seen a few early investors selling, which has slowed the upmove of LKK but was easily absorbed by other investors. We are observing a rapid increase of daily liquidity in LKK (yesterday 1 Mio USD). This is a healthy development that will cushion strong sell offs."
https://www.reddit.com/r/lykke/comments/6fvxqc/50m_market_cap/dipmw4u/

Ok so according to this, they are going to move ALL the lykke coins into the trading wallet, meaning the supply of coins will be flooded big time.

Which tells me that the project will be overvalued in many people's eyes (the free market), leading to a substantial drop in price

I am selling all my LKK immediately and will wait until the dust settles before re-buying again. There is no need to flood the market with so many coins whatsoever

This move isnt respecting the investors who bought LKK on the Lykke trading wallet..its making a mockery of them

I believe Richard Olsen realises he made a mistake and is trying to correct it before the situation gets much worse

That's not how it works. Lykkes trading is currently managed by a trading bot. You can check out how it works on their website.

There's a big difference between putting coins in circulation, and putting sell orders out for tonnes of coins.

What they're doing is simply giving the existing shareholders the ability to sell IF they wish. This means the angel investors, founders, institutional guys, and people who believed in Lykke can sell their original distribution if they wish.

The only thing that's happening is levelling the field between current LKK holders, and original shareholders.

It is absolutely necessary that this occurs, as it further distributes ownership over time. This is a good thing.

You can of course, exercise your right to sell at any time.

[kadscuk]

That's not how it works. Lykkes trading is currently managed by a trading bot. You can check out how it works on their website.

Ok, if lykke is using a trading bot ie an algo, without their being an ability to buy on a limit price or market price, that means its using an artificial mechanism to set the LKK price. In other words, lykke is artificially setting the price of the LKK token which isnt using free market forces. In baby terms...it means their gaming their price to their advantage.

LKK isnt trading on the free market ie on bittrex, polo etc so of course the LKK pricing system is biased. As a private company, lykke is entitled to do that obviously, but investors need to be aware that they're paying a substantial premium for LKK tokens than if it was on the free market.

Its a clever pricing strategy resting on centralisation and a special technical angle

There's a big difference between putting coins in circulation, and putting sell orders out for tonnes of coins.

What they're doing is simply giving the existing shareholders the ability to sell IF they wish. This means the angel investors, founders, institutional guys, and people who believed in Lykke can sell their original distribution if they wish.

The only thing that's happening is levelling the field between current LKK holders, and original shareholders.

Yes theres no sell orders automatically set for coins but that's not what I mean at all.

What lykke is doing is playing a technical trick: shareholder tokens count towards market cap just as much as tokens bought on the exchange. However, the way lykke has done its valuation (as it shows on coinmarketcap) is to only include the trading wallet tokens on its market cap.

Just because lykke decides that only trading wallet coins should count in the valuation doesn't actually make it true. Its the free market and industry which decides your true valuation.

As soon as people realise lykke isnt trading freely, there is less incentive for investors.

It is absolutely necessary that this occurs, as it further distributes ownership over time. This is a good thing.

True, this transparency does help, but it should have been done from the very start. Olsen could have easily allowed all coins to contribute to market cap from the beginning - and he should have because 'private" tokens were still bought at a price, meaning they have value.

So, by flooding the market, im not talking about their being sell orders because there's more supply of tokens. Im talking about an attempt to game the system by cooking your free token vs unavailable token numbers and thinking people won't notice when your valuation is totally out of whack.

If they were transparent from the beginning they wouldn't have this problem.

[doctor-s]

That's not how it works. Lykkes trading is currently managed by a trading bot. You can check out how it works on their website.

Ok, if lykke is using a trading bot ie an algo, without their being an ability to buy on a limit price or market price, that means its using an artificial mechanism to set the LKK price.

Yes, anyone who bothered to do 5 mins research or read the documentation on the website, or spent 5 mins with the app would understand that limit orders are not yet in place, and the market trading is managed by a bot.

In other words, lykke is artificially setting the price of the LKK token which isnt using free market forces. In baby terms...it means their gaming their price to their advantage.

LKK isnt trading on the free market ie on bittrex, polo etc so of course the LKK pricing system is biased. As a private company, lykke is entitled to do that obviously, but investors need to be aware that they're paying a substantial premium for LKK tokens than if it was on the free market.

No. This is false. The market is setting the price of LKK based on the constraints of the algo bot. If nobody is buying, and people are selling, the bot will drop the spot price for buys. That's how it works.

Lykke will be added to other exchanges, however, lykke is an exchange, it's going to be directly competing with the likes of polo and kraken. Once limit orders are in place on like (set as a near term goal so should be very soon), this issue will evaporate.

If you don't like the way the Lykke market is currently set up with the algo trading bot. Don't buy. It's pretty clear and simple. Nobody is forcing you to.

There's a big difference between putting coins in circulation, and putting sell orders out for tonnes of coins.

What they're doing is simply giving the existing shareholders the ability to sell IF they wish. This means the angel investors, founders, institutional guys, and people who believed in Lykke can sell their original distribution if they wish.

The only thing that's happening is levelling the field between current LKK holders, and original shareholders.

Yes theres no sell orders automatically set for coins but that's not what I mean at all.

What lykke is doing is playing a technical trick: shareholder tokens count towards market cap just as much as tokens bought on the exchange. However, the way lykke has done its valuation (as it shows on coinmarketcap) is to only include the trading wallet tokens on its market cap.

Just because lykke decides that only trading wallet coins should count in the valuation doesn't actually make it true. Its the free market and industry which decides your true valuation.

As soon as people realise lykke isnt trading freely, there is less incentive for investors.

Uh, this isn't Lykke doing that. It's coinmarketcap. Look here at a different website that calculates correctly: https://bravenewcoin.com/market-cap/

If you have a problem with coinmarketcap, don't use it. It's coinmarketcaps problem. Again, do 5 mins research on Lykke and you'd see the error in coinmarketcaps calculation. Perhaps you can email them and get them to fix how they calculate market cap?

It is absolutely necessary that this occurs, as it further distributes ownership over time. This is a good thing.

True, this transparency does help, but it should have been done from the very start. Olsen could have easily allowed all coins to contribute to market cap from the beginning - and he should have because 'private" tokens were still bought at a price, meaning they have value.

So, by flooding the market, im not talking about their being sell orders because there's more supply of tokens. Im talking about an attempt to game the system by cooking your free token vs unavailable token numbers and thinking people won't notice when your valuation is totally out of whack.

If they were transparent from the beginning they wouldn't have this problem.

But that's not how this works. Again, your entire premise is based on the false representation given by coinmarketcap. If you have a problem, it's with them.

Think about it this way. The other 90% of Lykke shareholders are just that, shareholders. They were not originally LKK holders but shareholders. Lykke is transitioning to an LKK holder based model. 10% of the shares of Lykke were available for sale on the Lykke exchange representated by LKK coins. The remainder 90% were already purchased / owned by the founders, angel investors, etc. who originally funded the project. Their shares were never on the market to begin with, so private wallet / trading wallet for them is irrelevant, as their stakes were locked as per shareholder agreement. You can read all about this on their website.

I mean, does nobody read the company docs anymore?

Lykke is a company, people need to really get their head around this. It's not a cryptocurrency.

[tempus]

I noticed Lykke's price on coinmarketcap over the past couple of days went down from 0.395 to around 0.383 and yet the marketcap rose from around 56 million to 61 million despite the lower price per coin.

Has there been an employee bonus distribution or something that has increased the circulation of the coin?

I don't believe circulating supply (which is what coinmarketcap uses) has increased. Though I'm not certain. If it has increased, it's increased minimally.

In any case, I wish coinmarketcap would use the total supply, and not the circulating supply, it's very misleading.

I think the best chart is brave-new-coin - much more precise (gives a lot of infos by moving over it with the mouse) and they display the total:

https://bravenewcoin.com/lykke#Trading-Pairs


Regarding the circulating supply: They move more into the trading wallets. Richard Olsen made a post about the supply and how it's handled, also about the value on reddit:


"Thank you for all the comments about the valuation of Lykke.

Coinmarketcap computes the market capitalization of Lykke based on the coins that are held in the trading wallets and does not include the coins held in other wallets. When Lykke was founded and started the first rounds of fund raising, the coins were issued to other wallets, because the trading wallet was not yet developed. In June we will move all the Lykke coins to the trading wallet. If the price of LKK does not change and remains at 0.374716 USD the total market capitalisation will jump to 481,772,471 USD.

Every buyer of LKK needs to be aware that the Lykke project is high risk – we are reinventing finance and build an emergent organization that is inspired by the principles employed by nature and where all the software and knowledge is open source. We will make mistakes and these mistakes can be costly, so there is risk and any investor should only buy LKK, if he can afford to lose his money.

What is the appropriate valuation of LKK?
LKK is not just a normal crypto currency that can be used to make payments. LKK is also a share participation in Lykke Corp and entitles to dividend payments, when Lykke earns a profit. 1 LKK represents a share participation of 0.0000000778% of Lykke Corp to be exact.
Lykke is more than a regular stock exchange, because we will be one of the liquidity providers on the exchange and will ourselves offer investment products for our users to invest. In addition, we have our accelerator business, where we help incumbents to retool their business and move to blockchain. We are acquiring the regulatory approvals to turn the Lykke marketplace into an industry strength organisation that institutions can use. There is a lot of upside for the Lykke business model. An increase of the LKK price is positive for us, because it makes it easier to fund our expansion plan and attract top talent.

Lykke does not have any shareholder agreements, etc. preventing investors to sell their LKK. This strategy is in line with my approach to build a fragile company – my reasoning is as follows: If investors can at any time sell their coins, then selloffs will be spread out over time and are helpful warning signals for the company. We have seen a few early investors selling, which has slowed the upmove of LKK but was easily absorbed by other investors. We are observing a rapid increase of daily liquidity in LKK (yesterday 1 Mio USD). This is a healthy development that will cushion strong sell offs."
https://www.reddit.com/r/lykke/comments/6fvxqc/50m_market_cap/dipmw4u/

Ok so according to this, they are going to move ALL the lykke coins into the trading wallet, meaning the supply of coins will be flooded big time.
 

All of their LKK's, not those of Investors. And there is no real difference for the market. It won't be simply dumped what also wouldn't make any sense because it would be dumped into Lykke-Buy-Orders since User-limit-orders are not possible until now. There also won't be a super-huge-sell-wall.

Which tells me that the project will be overvalued in many people's eyes (the free market), leading to a substantial drop in price

But if that should be the case, that people right now believe the valuation is below of what it really is, you should see it as a push for transparency and not the opposite. And while this move is not a secret but openly told the public and discussed by the community here and on reddit and also on Slack the price did not drop until now. I believe the reason is that the high valuation never has been a secret. I've communicated it here several times, and also on all other places (I'm Ph03n1xII on reddit btw). And the total supply is also one "focus-info" on all places and official documents.

I am selling all my LKK immediately and will wait until the dust settles before re-buying again. There is no need to flood the market with so many coins whatsoever

That is everybodies own free choice. And sure, it is possible that some or even many Investors might be kind of scared or expecting others to be. Until now that is not the case. The price did not go down but even more up.

And I personally don't believe that this will have much impact on the price while I believe that if the price should go down it will be profit-taking, a usual price correction. But I often believed that to happen in the past and all corrections until now were pretty much short-term and the price recovered very quickly.

This move isnt respecting the investors who bought LKK on the Lykke trading wallet..its making a mockery of them

See, there are early Investors who bought LKK before there the APP existed. And there never was a sell-restriction while the supply that was displayed on coinmarketcap as "on the market" was not precise but only displayed the ICO of Sept/Oct 2016 if I recall it correctly. Then Coinmarketcap changed it to "circulating supply". And in Bitcoin for example that counts all BTC that are in existence. In Ripple it counts all XRP that are not locked (Ripple as company made the decision to hold back a certain amount they control). In Lykke it's about the difference of trading wallets and the other options (private or coinprism).

If compared to Bitcoin: All LKK's are already in existence so all could counted as circulating supply
If compared to Ripple: There is no such sell-restriction in Lykke. But at the same time LKK's represent ownership and founders and company will not just be carefully with that because they don't have any interest in damaging the price and the value of the company, they also have no interest to sell their ownership cheap - they founded this, they are the ones who work hard to make Lykke successful.

Out of Investor-perspective LKK has much more advantages than XRP that is just a bridge currency without much base or connection to the success of the company behind. And it's everybodies free decision, based on own conclusions, to decide if one wants to buy and to participate that way in the potential but of course, it's also putting money at risk - and that is true for all Investments. And Richard Olsen is very open about it and says:

"Every buyer of LKK needs to be aware that the Lykke project is high risk – we are reinventing finance and build an emergent organization that is inspired by the principles employed by nature and where all the software and knowledge is open source. We will make mistakes and these mistakes can be costly, so there is risk and any investor should only buy LKK, if he can afford to lose his money."

And that is not the first time he states that.

   
I believe Richard Olsen realises he made a mistake and is trying to correct it before the situation gets much worse

I believe it would be a big mistakes not to communicate it but to do it. And it would even be worth if they would do that in a hidden fashion, slowly over months and thinking Investors would be too stupid to recognize it.

[Alao]

So the price of LKK started out at .04 USD a just hit .40 today (partially because of the rise in BTC). I don't know what more you people want?!?!? This is a high risk and high reward investment. This company is trying to change the financial Forex world and has a pretty sharp team.

[tempus]

For German-speaking ppl here, article plus Video about Richard Olsen and Lykke (he speaks "swiss-german" btw ;-) ) :


Revolutioniert dieser Mann die Handelsplätze?

Der Schweizer Richard Olsen will mit seinem Startup Lykke einen globalen und digitalisierten Finanzmarktplatz errichten. Im cash-Video-Interview erklärt er seine ehrgeizigen Pläne.

https://www.cash.ch/news/top-news/richard-olsen-von-lykke-revolutioniert-dieser-mann-die-handelsplaetze-1076655