(LKK) LYKKE speculation

[tempus]

Can people in the US use the Lykke wallet yet? I D/L'd the app, but it told me that if I lived in the US I could not use it yet? Has theat been fixed, and is there any way to invest in Lykke right now (For USAans) ahead of the wallet?

Unfortunately it's not possible for US-citizen yet to use the App. Reason is that Lykke is in regulatory processes in the USA. Once Lykke has received all needed approvals that will change of course. Lykke has a team in the USA and they give their best to get it through as fast as possible.

You already have a date about the approval of lykke in U.S.A. ?

No ETA yet, but also because it won't be about the whole USA at once. And it's a really complicated procedure I also don't have deep enough knowledge about.

Some words about how it's done:

1) It's about single states. Some states are easier and will be faster, others are harder.

2) It's about different kinds of licenses

3) It's also about different kinds of possibilities (access to products/client experience).


For the practice that means: One can think of the whole process as a roll-out over time. Citizens of the easier states will get access to Lykke earlier, those in the hardest states will have to wait longer. And there will also be differences about user experience. Some things that will be possible in the EU for example may be blocked first for US-citzen and enabled step-by-step over time.

But Lykke makes good progress and the man who leads it, Michael Klena, has a lot of experience. I believe that first results will realize this summer.

Thanks for the response and the commitment you have had so far in this project. I followed it from the beginning and bought lykke at $ 0.04 last summer, and I think opening in America is crucial to make it grow even faster and deep!

According to your prediction, where do you see lykke in late summer and late 2017?
20,000 and 60,000 satoshi is realistic?

I don't think that much in fix prices but more in dynamics and price-potential. To make it more tangible:

If one does really good research about a project, in this case Lykke, it becomes possible to write down strength, weaknesses and risks. If I do that with Lykke, the strength-list is really impressive. If we look on the next month and ask what is likely to have positive impact on the price it's in my opinion

1) if there should be significant user-growth it's likely to already have some effect.
2) if there will be "messages", indicators of future potential (sometimes what is called hype-material - more psychological impact).

And if we think about the development status right now it's still base-building and not that much "hype-material", but it't also likely to attract more users: Offchainsettlement, Ethereum-integration will be next and should come soon. And all progress on the regulatory front will also attract more users because the door to Lykke becomes more open.

What I expect to be "hype-material", that it will not only lead to more attention on Lykke but also change the picture of Lykke more into "wow, now I get that Lykke is about much more" will be the web-based-terminal. I don't know when it will come but I expect it to have impact.


If we look at weaknesses:

1) Some say that Lykke doesn't do enough marketing.
2) LKK is only on Lykke, not on other exchanges yet.
3) Development delays



First about marketing: It's true that Lykke is still pretty unknown and under the radar and it's also true that Lykke doesn't do much marketing yet. But: Exactly that is potential what becomes clear if we think about a potential alternative: Imagine that Lykke would spend a lot of money to do big marketing. 1) It would considered as hype. 2) Maybe it wouldn't even have the wanted effect for now because at the current stage it's not that attractive for a majority yet. What I expect and what Lykke is about: An increasing tendency - also regarding marketing. Once the base-building is done and once Lykke becomes fully functional and accessible for more and more people (because of regulatory approvals) and starts to do crowdfundings for other projects, begins to list the significant Cryptos and projects etc. it will have marketing effect even without pushing/hyping it hard.

If LKK would be on other exchanges it would have marketing effect, especially on bigger exchanges like Poloniex or Kraken etc. I don't know if that will come soon. But it's not necessarily bad if LKK is only on Lykke first, simply because it ensures a more stable growth, also because it more attracts Investors instead of "In-and-Out-Traders". The price becomes more reliable and a better reflection how Lykke is seen and valued. At the same time: The potential still stays - not being on other exchanges is the potential to hit other exchanges once ready.

Development delays are not nice for sure but a common reality for complex projects and it needs quality. As long as they deliver quality and improve everything what may not be as perfect as possible, I see no problem.



If we look at risks:

In a lot of projects the teams itself are the major risks because there are many scammers and even more teams that find out that they are overwhelmed and/or run out of funds etc. The team behind Lykke is absolutely reliable. Nobody is perfect but there is no doubt about their honesty and professionalism and abilities - and whenever there may be a lack on whatever front they hire somebody to close a gab.

But: One risk is always the technology itself. Offchain-settlement for example is a hard thing to do, very complex. That's why they are testing and testing and testing. At the same time there are projects out there, like Factom for example, who still had to face problems after going life and after extensive testing for months.

Another risk may be the financial side because Lykke is expensive. Not speaking about price and marketcap but about the goals. Lykke needs manpower and especially regulations are damn expensive. But again, they know what they are doing. Richard Olsen is a man with huge experience and there are many others as well - Sergey Ivliev (won a prize for best Risk Manager) for example but also others.

The number 1-risk in my opinion is security. It would be a huge set-back if something would happen on that front.


And my way of thinking about it all, as a conclusion is:

Risks are risks. If a worst case scenario should realize and it's never possible to totally exclude that (in no project, no Investment at all), it would have impact for sure. At the same time the team behind this won't give up.

Interesting are the weaknesses because I see it all as potential. And the Lykke-strengths are even pure potential in a lot of ways: A very attractive usecase that will become more and more attractive over time what will lead into increasing natural growth (already happens). And over time it will also be possible to make more marketing because even if offchain-settlement is absolutely important, it won't get the attention like web-based-terminal, debit-card, business deals etc. It's simply not such an eye-catcher, unlikely to produce headlines.

In very short words: If no risk-scenario realizes the price of LKK is very likely to increase and maybe even to hype. It's not possible to predict the "when" or "how high", but if we compare Lykke with some projects that are in fact only smart contracts on Ethereum but very high valued: Once people begin to understand that Lykke can do all such things and more, including becoming a prediction market etc., they may rethink what should have a higher value.


This was the try to outline my personal view and of course I'm biased because I work for Lykke. But I work for them because I see what I see, not the other way around. ;-)

[torjusg]

Thorough and well spoken Tempus. To me, Lykke is the only long term investment available at the moment which I would consider an excellent buy at 4X the ICO price. It has extreme market potential, works very well in terms of doing trades although lacking in some respects as of yet (such as a proper trading interface, limit orders being the most sorely missed).

I do not think that LKK should at any stage go on Poloniex, Kraken or any other centralised exchange of the simple reason that they are prone to attacks. Since LKK is a token that represents shares, it could potentially become a problem for the company or the rest of the coinholders if a lot are stolen, lost or somehow otherwise compromised.

[kronos123]

Thank you so much, Mr. Tempus.
You are really exhaustive, detailed and convincing

I keep my lykke for a long long time.   

[kawacaki]

I'm planning to buy another 150k lkk1y, but i am waiting for the opportunity to sell a large chunk of XRP for that.
So lykke must not rise to hard to soon. at least wait fot XRP to rise around $.75

[mtnsaa]

Can people in the US use the Lykke wallet yet? I D/L'd the app, but it told me that if I lived in the US I could not use it yet? Has theat been fixed, and is there any way to invest in Lykke right now (For USAans) ahead of the wallet?

Unfortunately it's not possible for US-citizen yet to use the App. Reason is that Lykke is in regulatory processes in the USA. Once Lykke has received all needed approvals that will change of course. Lykke has a team in the USA and they give their best to get it through as fast as possible.

You already have a date about the approval of lykke in U.S.A. ?

No ETA yet, but also because it won't be about the whole USA at once. And it's a really complicated procedure I also don't have deep enough knowledge about.

Some words about how it's done:

1) It's about single states. Some states are easier and will be faster, others are harder.

2) It's about different kinds of licenses

3) It's also about different kinds of possibilities (access to products/client experience).


For the practice that means: One can think of the whole process as a roll-out over time. Citizens of the easier states will get access to Lykke earlier, those in the hardest states will have to wait longer. And there will also be differences about user experience. Some things that will be possible in the EU for example may be blocked first for US-citzen and enabled step-by-step over time.

But Lykke makes good progress and the man who leads it, Michael Klena, has a lot of experience. I believe that first results will realize this summer.

Thanks for the response and the commitment you have had so far in this project. I followed it from the beginning and bought lykke at $ 0.04 last summer, and I think opening in America is crucial to make it grow even faster and deep!

According to your prediction, where do you see lykke in late summer and late 2017?
20,000 and 60,000 satoshi is realistic?

I agree with tempus that it's hard to give predictions especially in BTC prices. If you take the past ICO price (it was around 8k sats) it hasn't moved that much, especially compared to other assets which actually pumped 4 or 5x (let alone in fiat terms). So I think that while the fiat pair can continue to rise as long as Lykke gets to be more well known and developed, the BTC pair is not so clear, I've seen LKK both gain on BTC rises and the other way around.

I think Lykke is a much more stable investment compared to other projects, it's not only about token/platform usage speculation, investors are getting actual true equity in the company, something quite unique in this space. Things like offices, licenses, revenue and other assets all matter while estimating the true value of Lykke as a company.

In terms of outlandish predictions or wishful thinking, someone on Reddit mentioned recently that "One day Lykke might be the stock exchange of the world. Maybe not, but maybe".

 

[jonridgeon]

Is the offchainsettlement update complete and successful now?

[tempus]

Is the offchainsettlement update complete and successful now?

As far as I understand, it's a like a step-by-step-rollout, that more and more users are taken into offchain. And yes, all seems fine so far.

Only issue I know and also experienced myself: first it gives the message "App version not supported. Please update."

Users need to log out and than to login again. That should solve the problem.

[kronos123]

I'm planning to buy another 150k lkk1y, but i am waiting for the opportunity to sell a large chunk of XRP for that.
So lykke must not rise to hard to soon. at least wait fot XRP to rise around $.75

What is lkk1y?

[kawacaki]

I'm planning to buy another 150k lkk1y, but i am waiting for the opportunity to sell a large chunk of XRP for that.
So lykke must not rise to hard to soon. at least wait fot XRP to rise around $.75

What is lkk1y?

https://www.lykke.com/city/blog/what_is_lykke_forward   you buy lkk at a discount by settling lkk1y for 1 year

[kronos123]

Well, but that was an active offer until February 28th.
Now you can still buy lkk1 coins and at what price?

[mtnsaa]

Well, but that was an active offer until February 28th.
Now you can still buy lkk1 coins and at what price?

Hey kronos123, right now it's around 10%, the market dictates the price of course, I've seen it above and below that but I think the days of 20% discount are long gone.

[kawacaki]

You can find the actual price in the lykke app.

[vlom]

one thing is clear. the price won't jump up and down (pump and dump) when the token is not listed on exchanges.

a problem i have with lykke is: do you really don't need lkk to make a trade? if the answer is yes: how will the company make money the future?and why should anybody buy tokens/shares?

[tempus]

one thing is clear. the price won't jump up and down (pump and dump) when the token is not listed on exchanges.

a problem i have with lykke is: do you really don't need lkk to make a trade? if the answer is yes: how will the company make money the future?and why should anybody buy tokens/shares?

No, users don't need to buy into LKK to use Lykke and there is also no fee. So yes, it's of course a good question how they'll make money. The answer is: Lykke acts as marketmaker, is algodriven and makes money over the spread. You can think of that as kind of a dynamic fee, dependent on the market situation. Additionally Lykke will also become a platform for others to do crowdfundings, they plan to go into the payment direction pretty soon, over time it may even become a prediction platform.

Here is an answer of Richard Olsen on Reddit on a similar question:

"My apologies for the late response: 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/

[jonridgeon]

Tempus, thanks you're being very helpful here 

I was just wondering about the roadmap for Lykke. Looking at Trello, there is quite a lot of things listed for the near-term, do you think that will all realistically be done by the end of this year? I am really enthusiastic about the Lykke project and checking every day about anything that's going on, i guess that can make it like waiting for a kettle to boil!

[tempus]

Tempus, thanks you're being very helpful here  

I was just wondering about the roadmap for Lykke. Looking at Trello, there is quite a lot of things listed for the near-term, do you think that will all realistically be done by the end of this year? I am really enthusiastic about the Lykke project and checking every day about anything that's going on, i guess that can make it like waiting for a kettle to boil!

The Trello-roadmap actually was an internal roadmap but Sergey gave me his ok to publish it. It's not totally set in stone but more dynamic. Especially time estimations may change, sometimes he moves something from near- to mid-term and the other way around for example (you can see changes by clicking on Menu - on the right side).

And history shows, not just in Lykke but in all ambitious Blockchain-projects, that delays are not that rare. With other words: Think of the roadmap as goals to reach and I have no doubt that those goals will be reached, but it's very hard or even impossible to think in fixed time-estimations. That's also a reason why there are no fixed dates - only near/mid/long-term. That gives some room. ;-)

But yes, I believe that "near-term" is achievable in within about few months. If not Sergey would move it to mid-term. He did that with P2P-Lending for example.


About time estimations (near-/mid-/long-term) he said this on Telegram:

"short term (in road map) indicates the tasks that are in development/deployment phase, eta typically 0-4 months; in 'mid-term' are the tasks that are on our todo list, eta 3-6 months; long-term are the projects that we envision, eta up to 12 months and longer"

[jonridgeon]

Tempus, thanks you're being very helpful here  

I was just wondering about the roadmap for Lykke. Looking at Trello, there is quite a lot of things listed for the near-term, do you think that will all realistically be done by the end of this year? I am really enthusiastic about the Lykke project and checking every day about anything that's going on, i guess that can make it like waiting for a kettle to boil!

The Trello-roadmap actually was an internal roadmap but Sergey gave me his ok to publish it. It's not totally set in stone but more dynamic. Especially time estimations may change, sometimes he moves something from near- to mid-term and the other way around for example (you can see changes by clicking on Menu - on the right side).

And history shows, not just in Lykke but in all ambitious Blockchain-projects, that delays are not that rare. With other words: Think of the roadmap as goals to reach and I have no doubt that those goals will be reached, but it's very hard or even impossible to think in fixed time-estimations. That's also a reason why there are no fixed dates - only near/mid/long-term. That gives some room. ;-)

But yes, I believe that "near-term" is achievable in within about few months. If not Sergey would move it to mid-term. He did that with P2P-Lending for example.


About time estimations (near-/mid-/long-term) he said this on Telegram:

"short term (in road map) indicates the tasks that are in development/deployment phase, eta typically 0-4 months; in 'mid-term' are the tasks that are on our todo list, eta 3-6 months; long-term are the projects that we envision, eta up to 12 months and longer"

Super, thanks!

[kawacaki]

Lykke has achieved long awaited milestones: Offchain settlement and Ethereum integration. We will hold an Annual Lykke Coinholder meeting online on June 29.
 


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.

Please note that to be able to vote you would need to complete your identification process in the Lykke Wallet (selfie, ID, proof of address).


Lykke life speeds up - stay tuned!
Richard Olsen and Sergey Ivliev,
Founders of Lykke


All impressive stuff!
also the value of lykke is still rising every day.
sad for me, cause i wanted to buy so many more
there is nothing like lykke out there! get on board or get left behind, choice is yours.

[chanmaleng]

will coinholder meeting makes price increase?

[Jacqualin]

As I see from this forum, most of the people invested to the altcoins say that in one year period it will be $100. C'moon be realistic. It will not work.

That coin, this coin if you ask anybody all coins will be 100 dollars worth in a year.

I think there are just a few coins to be invested. That's why even you say that maaan it is just $10, you need to be careful about the investments you made.

Still money is money