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Lykke is a movement to build a global marketplace for the free exchange of financial assets. By leveraging the power of emerging technology, our platform eliminates market inefficiencies, promotes equal access from anywhere in the world, and supports the trade of any object of value.
Lykke Corp, incorporated in Switzerland, issues its shares in the form of Lykke Coins on the Blockchain.
Lykke Corp is a FinTech company that develops a trading platform (see our Github). The company’s subsidiaries, which are licensed as financial companies, provide broker and trading services for clients. All possible asset pair types are tradable: fiat fx to fiat fx, fiat fx to crypto, and crypto to crypto.
Lykke is much more than a traditional securities business. We believe that, in the future, many assets will be digitized, from real estate to freelance time, to music IP rights, to rent, to say nothing about SME private equity, project financing, bonds, community coins, and many others. Our users will be able to trade them all.
We believe that the UK provides the best-in-class regulatory environment for this kind of trading facility for institutional clients. The compliance is hard, but it enables us to streamline the processes and operations to provide a high-end service to our clients.
Our corporate organization is inspired by the mechanisms of nature and its unmatched efficiency. The crowd-based approach opens our organization to contributors from around the world and provides us with speed and versatility.
Our marketplace is highly efficient and seamless. We provide immediate delivery and direct ownership. The transaction costs on our marketplace are low, thanks to our efficient corporate structure and new technology.
Lykke traces its history to 1985, when our founder and CEO Richard Olsen formed Olsen & Associates, or O&A. This firm collected tick-by-tick foreign exchange data and built an online information system with real-time forecasts and trading recommendations. In 1995, O&A organized the first high-frequency finance conference, making a large tick-by-tick data set available to academia. In 1996, Richard co-founded OANDA, a spin-off of O&A. First, OANDA introduced a currency converter, which was an instant success. Then, in 2001, OANDA launched a foreign exchange trading platform with second-by-second interest payments and uniform spreads for all ticket sizes. There was no price discrimination for small traders. Richard is passionate about reforming the financial industry and creating a seamless marketplace, where any asset can be exchanged against any other asset at minimal cost.
A commercial enterprise has equity with shares that can be traded in the market. In the case of Lykke, these are our Lykke coins. The market value of our coins mirrors the efficiency and success of Lykke. This is a clear-cut metric that aligns interests.
Yes, but please keep in mind that security does not stop with us. While Apple phones have very good security to prevent malware from recovering data from an app, you should keep a lock code on your phone and take other measures to prevent people from accessing your wallet.
Also, it is very important to create a paper backup of your wallet by writing down your unique twelve-word seed. This seed will help you to recover your private key in case your device is lost or stolen.
ICO stands for Initial Coin Offering. Lykke offered 30 million Lykke coins (LKK) from September 13 to October 11, 2016, at a price of 0.05 Swiss francs per coin, representing approximately 2.33% of Lykke’s equity.
A Lykke coin (LKK) is a cryptographic token that represents ownership of Lykke, a Swiss registered corporation. It is not a currency. There is no mining, and there are no other exchanges that accept it (although that may change). One hundred Lykke coins represents a single share of Lykke Corp. Read more at our Information Memorandum
No. In a traditional fundraise, early investors get preferred stock in exchange for cash. In this kind of early public arrangement, investors get liquidity instead. All coins have exactly the same rights.
Yes. They are divisible to six decimal places. This is probably overkill, but it enables people to buyLykke coins with an even amount of any currency. In most cases, it doesn’t make sense to divide a Lykke coin, but you could if you wanted to.
We priced our ICO in reference to other FinTech companies that have raised or are raising money. The FinTech market is active with many different startups at various stages of development, so we had a number of companies that we could compare with. We also used standard present value calculations based on the revenue forecasts for the next three years. The valuation of Lykke was derived from these two methods and then validated by professionals with extensive experience in startup and growth companies.
Yes, the coins are traded on the open market of the Lykke Exchange. You can download the Lykke Wallet, deposit Bitcoins, send a SWIFT bank transfer or make a credit-card payment, and buy Lykke coins on the Exchange page.
Yes. If you own Lykke coins, you are entitled to become shareholders of Lykke Corp, provided that you submit to our minimum KYC requirements. Shareholders have additional rights, such as voting and receiving dividends.
The KYC process is a standard AML/CFT measure required by all financial companies and banks. This includes the verification of your ID and proof of residence. An additional biometric factor (in the form of a selfie photo) is added to secure your account.
Yes. At the moment, there are 12,856,900 shares of stock. The company issues new shares on occasion, usually to bring on new investors. Now that the company’s shares are publicly traded, the company will, in the future, set up a voting mechanism for existing coin holders to vote on matters like this. Be sure to see the Shareholder Memorandum for details.
Potentially, but unlikely. As with any stock, instant liquidity is not guaranteed. Lykke has reserved ten percent of the funds raised for a liquidity pool, and we will be raising more outside funds for an investment pool that will purchase Lykke coins. In general, the company aims to provide as much liquidity as possible. As more people own and want the coins, liquidity will increase. If, for some reason, fewer people want the coins, liquidity will decrease.
The shareholder’s meeting will be held electronically. Assuming that we know who you are and how to you reach you, we will invite you to this meeting based on the number of coins that you own. We also plan to have onsite events, which we hope will be an opportunity for learning, meeting people, creating new opportunities, and extending our community.
Distributed ledger technology is the protocol of decentralized data storage in a blockchain, where the consistency of data is guaranteed by the cryptography and consensus of multiple nodes. The pioneer and the most popular implementation of the DLT is the Bitcoin Blockchain.
Distributed ledger technology offers immediate settlement in a non-centralized framework at ultra-low costs. This will pave the way for the emergence of a global marketplace for all asset classes and instruments that use this system.
Distributed ledger technology facilitates step-by-step transactions. If contracting parties A and B decide to exchange assets X and Y, the transfer occurs synchronous and step-by-step; it cannot happen that just one side of the transaction is executed. Distributed ledger technology operates on a global scale and performs the role of a notary service. The technology is highly efficient, and it dramatically reduces risks associated with any type of transaction.
Distributed ledger technology is one of the most profound innovations of humankind, because contracting parties can execute transactions step by step, independent of location, while maintaining direct ownership. The step-by-step procedure is a safeguard against any misbehavior or fraud between transacting parties and dramatically reduces the risk associated with transactions. Direct ownership reduces complexity.
Distributed ledger technology may be used to record ownership of literally any type of financial asset.
We use Lykke coins to reduce our dependence on external funding. If a holder of Lykke coins wants to convert these coins into CHF, EUR, USD, or BTC, Lykke will make the conversion and transfer the money to the designated address.
Today, banks spend massive resources on inhouse operations. The adoption of distributed ledger technology will lead to massive cost reductions and enable banks to focus on their core expertise of managing risk.
The colored coin protocol (coloredcoins.org) makes it easy to use distributed ledger technology for any type of financial instrument. A financial institution can, for example, buy one Bitcoin on the market and then divide this one Bitcoin into one million increments. It can then use each one of these increments as a so-called colored coin and specify with the colored coin protocol the terms and conditions of that particular financial instrument.
A colored coin issued by the financial institution may represent a share of the company itself, but it doesn’t have to. It can represent any type of IOU, such as the commitment to make a payment of x EUR in n days to the holder of the colored coin, if so requested. The colored coin protocol makes it possible to use the distributed ledger technology to deliver and settle any type of financial transaction of any asset within minutes. Colored coins can have International Securities Identification Numbers (ISINs) to map them into the existing back office and risk management systems of banks, making the system compatible with the existing financial architecture.
Issuers of colored coins will buy virtual currencies to securitize financial assets, but they can use a small fraction of a Bitcoin to issue a colored coin. One Bitcoin can be sliced into one million increments; so, in theory, a colored coin needs to include only 1 millionth of a Bitcoin (1 Satoshi). If Bitcoins trade at a price of 300 USD per Bitcoin, the intrinsic value of the virtual currency per colored coin will be 0.0003 USD, a negligible amount compared to the market value of the colored coin. The price volatility of Bitcoin will therefore not impact the market price of colored coins.