Republic has revealed its next funding vertical today in a unique venture with Avalanche and Roche Cyrulnik Freedman, LLP. Initial Litigation Offerings or “ILO” will soon bring the multi-billion dollar asset class to retail investors, according to a blog post.
In fact, the first ILO offering will be Apothio LLC v. Kern County, State of California for the allegedly unlawful destruction of 500 acres of hemp crops worth approximately $1 billion.
The partnership cites data from a litigation fund LexShares that reports median annualized returns for the fund of a whopping 52% – after fees and expenses. This crushes many traditional benchmarks. While history is never any guarantee of future success these types of numbers can be compelling.
Created by Ava Labs, Avalanche is a high-performance blockchain that compares well against the popular Ethereum world. Ava Labs is on a mission to create the internet of finance with finality of transactions of under 3 seconds (Ethereum can loiter for minutes).
The ILOs will be digital assets and apparently, the tokens will be tradable on Ryval described as the stock market of litigation financing. It was not immediately clear which firm operates Ryval Market.
While there are other litigation investment platforms this will be the first to turn the asset into a digital asset (as far as we know).
By participating in these digital assets, a funder will provide the backing to pursue the litigation. If the case is a winner, the purchased tokens will proportionally benefit from any upside in the outcome.
Regarding the hemp crop case, the plaintiff in that matter, Apothio LLC, is a California-based industrial hemp R&D, and commercialization institution focused on hemp-derived cannabidiol oil (CBD). According to the post, in October 2019, without providing any notice or opportunity to be heard, the Kern County Sheriff’s Office destroyed 500 acres of the plaintiff’s legally grown hemp farm, estimated to be worth at least $1 billion. The case is expected to take place in Q1 of 2021.
Republic Advisory Services and Avalanche are said to be working out the details on facilitating the primary issuance of the tokens as well as the secondary trading of ILO tokens.
No date has been mentioned as to when the ILO will be live but it should be soon.
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