Apr 30, 2019
Lothlor The Custodian Digital Asset Fund | LOT
1/05/2019 | Q 2
What is Lothlor Investment Fund?
What difference will it make to my Blockchain Digital Asset Investment Portfolio?
We say welcome to Scott Botha CEO of Lothlor.com. Its always a pleasure meeting up and discussing your plans in the Blockchain Investment space.
In essence, Lothlor Token Fund is represented by the LOT Token that is the Fund Custodian, responsible for holding a multiple of handpicked Digital Assets within the fund.
Its safety lies with #DAI makerdao.com the Stable Coin that is responsible for safeguarding the Digital Assets in the fund. DAI is the first decentralized asset-backed hard currency on the Ethereum Blockchain.
What does this mean?
It simply means that there is a Liquidity Backed Stable Coin that is equal to the Dollar that when negative trends set in fund management secures funds to DAI in order for it to stay stable.
It means that when you buy 1 LOT Token (valued at $0.6 or 0.0041093ETH at the time of this article), you will be investing into a combination of Digital Assets to increase the value of LOT when they rise positively “BULLISH” and or “park” in the Stable Coin DAI when the market shows a negative trend “BEARISH”. The fund stays transparent and indicates at all times in which way it decides to interact with the market.
One of my top favorite things about Decentralized Blockchain is the fact that you can at any stage trace what your money is doing, in this case by the click of a button on the Lothlor website you will be taken to Etherscan where you can see all the transaction interactions you made with Lothlor Token Fund. This information is embedded in the Ethereum Blockchains Immutable Ledger and no one can tell you otherwise.
This whole process is made possible by an incredibly intelligent DAPP on the Ethereum Blockchain called Kyber Network with their Token Swapping Tool called Kyber Swap. Kyber Swap takes the difficulty out of trading Tokens. No Exchanges, no KYC, no need to worry about leaving your money on an Exchange.
Kyber Swap has been launched on APP Store, iOS and integrated into the Enjin Digital Wallet for Android users. The Enjin Wallet is a great example of how the swapping system works and you can read more about that here.
Gaming | My Crypto Gateway to the World
The power of this tradable system is proved inside the Lothlor Ecosystem where these tradable Tokens are seamlessly swapped to secure profits.
Let’s get into our Questions and Answers for the second quarter of 2019 for Lothlor.com
#1) After Q1 2019 What is your view on the Cryptocurrency Digital Asset Market for the rest of 2019
Well everyone, from a price point of view, is slightly bullish with Bitcoin has increased over 40% year to date. Infrastructure is forever growing regardless of price, with adoption looking to follow suit. I will be hoping that the technical’s continue to remain bullish and longer-term technical’s change bullish so we can put the bear of 2018 behind us.
#2) What strategy have you adopted for Q2 and or beyond for 2019 in order to grow the LOT Fund and LOT Token value.
From a value perspective, which is the ultimate goal of the fund, we changed the portfolio weights to hold a minimum of 10% in DAI. This will add an extra hedging tool when the market is bullish. For further information on this, look under the ‘Trading Rules’ section under the fund’s ‘Documentation’ section.
From a growth perspective, we should see organic growth through consistency in beating our benchmark, Ethereum. We will also be looking at targeting LinkedIn, a potentially untapped market in the crypto space.
#3) Can you explain to our readers how makerdao.com DAI Stable Coin acts as the fund's safety net?
Similar to how a traditional fund hold cash with stocks, we hold DAI with our various tokens. If we believe a token is trending bearish, we will exit the position and convert into DAI, thus limiting any further losses should the token continue to fall in price. Inversely, if we believe a token is trending bullish, we will convert DAI into the trending token with the hopes of profiting from a continued increase in token price.
#4) The Kyber Network and Kyber Swapping tool is a fundamental part of your core business. What new developments are they undertaking that will improve your Funds competitiveness in the market?
Kyber has seen consistent growth, over various metrics through Q1 2019. They plan on moving towards a permissionless liquidity protocol that can be implemented on any smart contract enabled blockchain. They also plan on having their protocol direction, implementation and treasury decisions to eventually be made by the Kyber community. The first pilot, KyberDAO Voting Experiment #1, recently took place. Kyber is consistently looking towards the future. Their great team plus able community will own the DeFi space in the near future.
#5) Living in a fast-paced Blockchain Crypto space means adapting to change fast. As your company grows as a Digital Asset Custodian Fund, how do you see the fund incorporating new ideas or development to foster growth in 2019?
With any business, one needs to be able to adapt to change as fast as possible. With crypto, do not be afraid of all the technical jargon, but rather embrace it by educating yourself in the areas you are less knowledgeable. Kyber is looking into Waterloo, a Decentralized Practical Bridge between EOS and Ethereum. This would increase the tokens under the fund’s watchlist, for example, with the portfolio of the fund holding both ETH & EOS based tokens in the near future. Kyber also incorporated WBTC in early Q1. Wrapped Bitcoin (WBTC) is the first ERC20 token backed 1:1 with Bitcoin. Thus the fund’s portfolio now has exposure to Bitcoin.
#6) The Ethereum Blockchain is a fundamental part of your business. What is your opinion on Ethereum for the remainder of 2019?
My long term beliefs are that the market will be dominated by Ethereum and tokens, such as ours, built on top of Ethereum. The markets just haven’t realized it yet! Once markets start moving independently of bitcoin, you should see Ethereum swallow up even more market dominance, with developers looking at building more and more dApps on top of the Ethereum blockchain.
#7) Do you think from what you have learned in the 2018 Bear Market that you will be able to better withstand the next one?
Most definitely! The fund adapted after the last bear to incorporate two additional trading pillars. The first one was touched upon earlier when a bearish token is converted into DAI. The 2nd pillar utilizes our fund’s DAI in a bear market. We use DAI as collateral to loan Ethereum and once loaned the Ethereum is converted into DAI and repaid at a later date, thus profiting from a blockchain based short position.
#morneolivier
Thank you, Scott.
To contribute and add perspective to our discussion I have asked Sam Shrager to join us. Sam Shrager — Digital Marketing Officer — NKB Group London| LinkedIn
Sam, over to you. Thank you Morne, it’s a pleasure to form part of the transformation leading to Digital Asset Funds.
#1a) What do you think of the current regulatory landscape and what do you think will be the key developments in 2019? How might this affect your business?
To achieve greater adoption for the digital assets landscape, there needs to be a catalyst that attracts institutions, investors, merchants, and consumers. In my opinion, this catalyst is Bakkt, who are heavily focused on building digital asset infrastructure. In order to achieve this Bakkt needs to follow regulations. They recently filed with the New York Department of Financial Services to serve as a Qualified Custodian for digital assets. This regulation is pivotal for the adoption and growth of this technology.
Moving forward the SEC has recently advertised the need to employ a Senior Level, Financial Analyst in Cryptocurrencies. This individual will be tasked with applying their knowledge of federal securities laws to digital assets and crypto businesses. With regards to the token fund, rules and regulations are out of my control, thus all I can and will do is make sure I stay informed and abide by these regulations as they become law to provide a trusted product moving forward.
#2a) With the recent legal action against Bitfinex, do you think this might have an impact on investor confidence in the space?
Seasoned individuals in the digital asset space are familiar with the FUD surrounding both Bitfinex and Tether. The recent lawsuit against them by the New York Attorney General should be taken as a positive. Investors interests are being protected by the Attorney General. Another point to mention is the competition. Bitfinex has fallen down the ranks in exchange adjusted volume. Tether still remains the top stable coin by market capitalization but faces stiff competition from USD Coin, TrueUSD, Paxos Standard Token, and DAI.
#3a) As Ethereum Blockchain is fundamental to your business, what do you think of Buterin’s recent announcement that Ethereum will use a higher staking reward metric after the deployment of Proof of Stake?
DeFi (Decentralized Finance) dApps built on Ethereum are exploding at the minute. The likes of Compound, Dharma, BlockFi, and Nuo are offering extremely attractive rates to lend Ethereum. Vitalik Buterin realized that he faced competition from these dApps and had to react by increased the staking reward to drive adoption for validating ether for the upcoming ETH PoS Algorithm.
Thank you, Sam, it's always fantastic to get an outside perspective on one’s business and in fact helps one dig deeper into the core of it, thank you!
Scott, thank you for updating us on your exciting Blockchain Custodian Fund Investment Platform, I am certainly excited to see how the Fund develops in Q2 and will be sure to have some further prudent questions for Q3.
Reference:
NKB Investment banking for the digital world
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UPDATED 11/04/19
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