Dear LCX community,
On March 10th, 2023, we had the most engaging and supportive AMA in our official Telegram chat, where our CEO, Monty C. M. Metzger (@montymetzger) answered questions from the community on various topics related to the platforms, our objectives, upcoming launches, and more. We really appreciate the warm conversation with the community and would like to share the summary of our live Ask Me Anything (AMA) session, moderated by community moderator “King” & “Alex”.
Community Host
Let’s welcome @montymetzger to this month’s AMA?
Monty Metzger, CEO
Hoi, Grüzi and Welcome to our AMA. I am excited to share some amazing news and key insights today!
Community Host
Let’s get started guys?
Monty Metzger, CEO
Hope you are all as excited as I am
Community Host
Thrilled to have you onboard once again Monty?
Community Host
It has been a great month in LCX, can you briefly give us some updates before we jump over to community questions?
Monty Metzger, CEO
Yes – the last 30 days have been all about growth, launching new products, and announcing new partnerships. While we see the current global economy entering a major recession and many players struggle – LCX keeps delivering.
Community Host
Great?
Monty Metzger, CEO
Here is a summary of the key things that have happened in the last 30 days related to LCX:
Floki Token Launching: LCX Exchange launched Floki Token, a new cryptocurrency, on its platform. The token was launched with the aim of providing users with a new investment opportunity and increasing the liquidity of the LCX Exchange.
LCX Launching Initiatives on Polygon: LCX announced the launch of a strategic initiative with Polygon. LCX has integrated and launched its services with the Polygon blockchain protocol to provide an end-to-end solution that will enable builders and token issuers to access secure, reliable, and transparent token sale infrastructure.
Official Approval of Prospectus for Tokenized Bond EURt7: LCX announced that it has received official approval for the prospectus of its tokenized bond, EURt7. The bond is designed to provide investors with a more secure and transparent way of investing in fixed-income products. LCX Earn, a new platform for earning passive income, will be used to distribute the bond to investors.
Community Host
Awesome, thanks for the update?
Community Host
From here also, let’s throw out the very first community question: When will there be more and faster Fiatramps?
Monty Metzger, CEO
Important for the community and for LCX. We had been working on this in stealth mode.
I can’t comment on this right now. Last year, we did a detailed selection process and looked at solutions. Now….. well. Stay tuned. An update will follow.
Community Host
Thanks for the answer Monty?
Community Host
Let’s do the next one. Will Lcx become profitable in 2023 or next year?
Monty Metzger, CEO
Growth is more important than profitability. LCX is a scale-up now, not a fresh startup. We will celebrate 5 years of LCX this year.
Community Host
??Very nice ✅
Monty Metzger, CEO
Nevertheless, you can see from our published financials that we are a well financed company. LCX AG has a share capital of 1 million CHF (almost 1 million USD), which is fully paid in. Due to regulation, we also have strict minimum capital requirements, which are always put aside and blocked (in fiat, unfortunately).
in terms of profitability. 2020 we made several million in profits already. Same in 2021 – profitable with 7 figure profits EBITDA. 2022 has not been published. Btw, it is important to mention that we are NOT a publicly listed company like Coinbase. But we decided to publish our financials to prepare for additional licenses and to provide financial transparency to our users and clients. including proof of reserves, which had been audited first by our internal auditing team and then by Grant Thornton, our external auditing firm. This process is costly, time consuming and normally only necessary if you work for Nasdaq or a billion dollar company.
But in any way – remember. We are a regulated entity in accordance with the blockchain laws in Liechtenstein. As such, at LCX, customer funds are fully segregated and held 1-1. Even in insolvency proceedings, customer funds cannot be taken into account. LCX AG funds are not mixed with customer funds. Never.
Community Host
Great and this will take us to the next question?
Community Host
What’s next for “LCX Earn”?
Monty Metzger, CEO
LCX Earn is a big milestone for LCX and for the crypto industry.
Community Host
Huge??
Monty Metzger, CEO
In a world where traditional finance meets tokenization, LCX introduces LCX Earn. LCX Earn offers fixed yield offerings based on regulatory compliant tokenized bonds, endorsed by the regulator, and passported across the European Economic Area (EEA).
The EURt7 Tokenized Bond is the first offering of this kind, launched at LCX this month.
Community Host
Very nice and huge for LCX ?
Monty Metzger, CEO
LCX Earn is different from all staking or yield earning products we have seen before. Celsius – grey market and unregulated, collapsing. BlockFi – in my view, clearly a security or bank-services that needs licences that it doesn’t have. Even Kraken’s staking services with ETH and other tokens have been under regulatory pressure. – the reason is that the moment users give their assets to a centralized entity for staking or other purposes, it is clearly a security offering.
Just to be clear, if you use the DeFi protocol, – fully decentralized – with your own non-custodial wallet, E.g., you engage in Proof of Stake systems and get stake rewards while providing critical infrastructure for the network. This is clearly NOT a security.
LCX Earn started in 2021 already, internally, and we filled out the prospectus in January 2022. Now, finally, we can roll it out.
Community Host
This is great and it’d eventually lead to more adoption of crypto ??
Monty Metzger, CEO
Starting with EURt7 with our key visual. The Moon.
Monty Metzger, CEO
The prospectus of the tokenized bond, the EURt7 security token, has been approved by the Financial Market Authority of Liechtenstein (Link to the Certificate of Approval of a Base Prospectus document) and passported across the EEA.
The tokenized bond is available to verified LCX users who are residents in the following 30 countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the Czech Republic.
Monty Metzger, CEO
Here is the link to the approval:
https://www.lcx.com/wp-content/uploads/Approval_LCX_EURt7_bond.pdf
Community Host
Awesome Monty LCX is doing it the Legal Way! ?? Amazing.
Monty Metzger, CEO
As you can also see, the approval is for a Base Prospectus. For all who know a little more about bonds, you may immediately wonder… A base prospectus is a legal document that provides detailed information about the terms and conditions of a financial instrument, including our tokenized bond.
Community Host
Interesting?
Monty Metzger, CEO
Another benefit of having a base prospectus for a tokenized bond is that it provides a framework that can be used for launching similar securities in the future. Once an issuer has created a base prospectus, they can use it as a template for launching other tokenized bonds or other types of securities in a similar manner. This can help streamline the process of launching new securities and reduce the time and cost associated with creating a new prospectus each time.
Monty Metzger, CEO
Having a solid base prospectus provides a foundation for growth and helps LCX build a strong presence in the market for tokenized securities.
Community Host
Very nice and important Info ??
Monty Metzger, CEO
Basically, we are establishing a whole new solution for what users want. We know that users actually loved the offerings of BlockFi and Celecius, but they have not done it the correct way.
Monty Metzger, CEO
Let me summarize LCX Earn:
➡️ Earn 7% Fixed Yield on $EUR
➡️ For Retail Investors
➡️ Available in 30 countries in Europe
➡️ Limited to 10’000 investors or €10M
➡️ 1st LCX Tokenized Bond is #EURt7
Monty Metzger, CEO
You read about many tokenized bonds as showcases for big banks. But these are only for other large institutions. LCX is the world’s first fixed yield bond offering targeting retail customers without selling it through middle-men, you can simply purchase and invest at LCX.
Here are the details: https://www.lcx.com/eurt7
LCX issues a 10 Million Euro Tokenized Bond, #EURt7. A security prospectus was published. Offering available to verified LCX users in 30 countries in Europe, #EEA. All details and documents are available at the above link.
Community Host
Amazing Monty thanks for the Infos ??
Monty Metzger, CEO
Yes – and especially for this AMA I can announce….
LCX Earn will include several assets besides euros, and we will be announcing the details in the coming weeks, one asset at a time. The euro is a good basis for many European investors. But I know our community also wants to earn yield on other assets.
Community Host
This is gonna be huge?
Monty Metzger, CEO
Announcing the details of each asset one at a time can help build anticipation and excitement within the community as investors wait to see which assets will be included on the platform. This will educate investors about the different assets and their potential risks and rewards, all of which are important and valuable for making informed investment decisions.
Offering a range of assets on LCX Earn can help provide investors with more options for earning yield and diversifying their portfolios. It also demonstrates LCX’s commitment to providing innovative, regulated, secure, and accessible investment opportunities for our LCX family: our LCX users and clients.
Community Host
Guys, get set with your questions ?
Community
Is there any progress regarding LCX US? What about an AMA with John Manella?
Monty Metzger, CEO
The US is becoming a toxic environment for any crypto company, and the policy makers are punishing even the best players in the market, such as Kraken or Coinbase. With the current development, I assume that we will see even more damaging actions against key players in the US until the bad actors are gone or dissolved. There are still too many shady crypto exchanges out there, which are harming the reputation of the real innovators. As such, we decided to double down on Europe while we still have users from more than 100 countries on our platform.
Community
What exactly will you use the money from the bond for? What are your plans?
Monty Metzger, CEO
Mainly liquidity at the LCX Exchange. Corporate Growth.
Community
Rule numero uno of business is to actually pay yourself first?
Monty Metzger, CEO
We define “yourself” as LCX. We invest in LCX’s growth only!
Community
Would we see at least $100M daily exchange volume?
Monty Metzger, CEO
We aim even bigger. ?
Community
Are there any big partnerships going to be announced anytime soon?
Monty Metzger, CEO
We have several major partnerships in the pipeline. Now things are turning around – as we are a new category leader, many companies want to work with us. For now, we only focus on the Tier 1 players in the market. Team is working in the background – announcements will follow.
Community
Awesome!
Community
Are new diamond nfts #tiamonds going to be added to the marketplace? Or even a new asset such as gold? #NFT #LCX
Monty Metzger, CEO
Tiamonds is a major project for us. Aiming to revolutionize the diamond industry as a whole. There will be a big relaunch and the launch of many new NFT drops backed by real-world diamonds. Insured, redeemable, and tradeable.
Community
Will you hire a COO?
Monty Metzger, CEO
As we grow, we will introduce new management structures. But we are not an old-school bank with many hierarchies – we will always have flat-management and be agile.
We have to close this AMA unfortunately.
Community Host
Thanks for your time.
The AMA session with Monty has finally come to an end.
We’re thankful for your support and for the amazing response to the AMA session with the CEO.
Also, we are indeed overwhelmed by all our esteemed community members, for their support and vitality towards the project.
For more information regarding LCX and the latest updates, you may visit LCX Insights
Thanks to all of you! The $LCX community is amazing!
Disclaimer: This content contains forward-looking statements that involve inherent risks and uncertainties, and we might not be able to achieve the predictions, forecasts, projections and other outcomes we describe or imply in forward-looking statements. A number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates, and intentions we express in these forward-looking statements and in other public filings and press releases. We may not achieve all of the expected benefits of our strategic initiatives and partnerships. Factors beyond our control, including but not limited to the market and economic conditions, changes in laws, rules or regulations and other market challenges, could limit our ability to achieve some or all of the expected benefits of these initiatives. This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to lose.
