Litigation finance is when a firm purchases a percentage of a lawsuit to help fund a lawsuit in the hopes of benefiting from a victorious case. There are other litigation finance firms but Liti is one of a few that seeks to tokenize assets.
Liti Capital launched its LITI equity token on June 24th and a “wrapped” LITI token, the wLITI, on June 29th.
Liti Capital says it tokenized its equity shares with the goal of providing retail investors an opportunity typically only available to a few investors. The company believes that tokenized assets can lower the barrier of entry for smaller investors while reducing costs and increasing security for both investors and the company. Liti also believes there will be greater liquidity in a tokenized asset.
Liti Capital’s CIO David Kay emphasizes that Liti Capital is not a cryptocurrency:
“Therefore, increasing our Market Cap is a good thing for our investors because it means we are putting new money to work to buy assets and create profits. We were able to invest our first $10 million and turn it into assets valued around $100 million. We expect to use this new investment to produce similar results.”
The company reports that of its initial private raise of $12 million, $10 million was used to secure assets worth up to $100 million of potential asset value. Adding the anticipated $50 million totals $150 million in possible returns. Of course, the litigation must be successful to achieve these goals.
The company states that its long-term goals include prosecuting crypto scammers. Liti Capital says it will spend between 5% and 10% of its investment capital investigating and funding litigation against these crypto con artists and scammers.