,
25 tweets,
7 min read
Read on Twitter
(Thread)
1/
$LTO Review. This was a tough review for me. Everything about it I either loved or hated and there wasn't much middle ground.
TLDR: It has very strong pumpamentals like a $QNT, but don't become a bagholder
You can buy it here: bitmax.io/#/register?inv…
1/
$LTO Review. This was a tough review for me. Everything about it I either loved or hated and there wasn't much middle ground.
TLDR: It has very strong pumpamentals like a $QNT, but don't become a bagholder
You can buy it here: bitmax.io/#/register?inv…
2/
Basic premise - $LTO is a workflow management chain. Basically it is meant to be a B2B cost/efficiency solution for a lot of real world processes using "live contracts". This especially includes processes with a lot of steps that can be easily automated.
Basic premise - $LTO is a workflow management chain. Basically it is meant to be a B2B cost/efficiency solution for a lot of real world processes using "live contracts". This especially includes processes with a lot of steps that can be easily automated.
3/
THE PROS:
I love the idea and the simplicity of it. Everything they are trying to do is very well explained in various existing articles, videos, etc. so I'm not gonna go crazy here. (See links at end of thread)
THE PROS:
I love the idea and the simplicity of it. Everything they are trying to do is very well explained in various existing articles, videos, etc. so I'm not gonna go crazy here. (See links at end of thread)
4/
I like that they didn't raise a ton of money in ICO. They have a strong company with proven business results and they *should* know how to use the money responsibly instead of blowing 100s of millions like almost every 2017-2018 ICO
I like that they didn't raise a ton of money in ICO. They have a strong company with proven business results and they *should* know how to use the money responsibly instead of blowing 100s of millions like almost every 2017-2018 ICO
5/
It's good that they aren’t pigeonholed into one industry. What they are doing works across a lot of business segments, which will allow it to provide a lot of real world value if it becomes widely adopted.
It's good that they aren’t pigeonholed into one industry. What they are doing works across a lot of business segments, which will allow it to provide a lot of real world value if it becomes widely adopted.
6/
Industries include supply chain, insurance, real estate, notary services, document management, etc. They are also working with government entities on solutions for some of their processes (i.e. in the legal sector)
Industries include supply chain, insurance, real estate, notary services, document management, etc. They are also working with government entities on solutions for some of their processes (i.e. in the legal sector)
7/
They appear to have a strong team and haven't made any overly outlandish claims as far as what they are going to do in the future. There seems to be a focus on tangible results, which I like.
They appear to have a strong team and haven't made any overly outlandish claims as far as what they are going to do in the future. There seems to be a focus on tangible results, which I like.
8/
They are collaborating with IBM Watson (which is cool by itself) to help make minor court cases (in Holland) more streamlined - saving the government and taxpayers money.
They are collaborating with IBM Watson (which is cool by itself) to help make minor court cases (in Holland) more streamlined - saving the government and taxpayers money.
9/
THE MEH:
I'm a speculative person who doesn't really get a boner for all the tech heavy stuff, so if you want that, check out the other articles I link to at the end. There's a lot of cool stuff, but I'm only putting the things I see as buying/selling points here.
THE MEH:
I'm a speculative person who doesn't really get a boner for all the tech heavy stuff, so if you want that, check out the other articles I link to at the end. There's a lot of cool stuff, but I'm only putting the things I see as buying/selling points here.
10/
THE CONS:
First off, let me say that a lot of the cons I associate with this project are also cons with many other utility token projects. I'm not saying that $LTO is better or worse than competitors in these aspects of the project, just that I personally don't like them.
THE CONS:
First off, let me say that a lot of the cons I associate with this project are also cons with many other utility token projects. I'm not saying that $LTO is better or worse than competitors in these aspects of the project, just that I personally don't like them.
11/
The tokenomics - I can't review all these other low caps and give them shit for their premines, dev fees, etc and just gloss over the tokenomics for $LTO. First off, they did an ICO, which was ballsy. They also had a respectably small raise, so not too bad on those fronts.
The tokenomics - I can't review all these other low caps and give them shit for their premines, dev fees, etc and just gloss over the tokenomics for $LTO. First off, they did an ICO, which was ballsy. They also had a respectably small raise, so not too bad on those fronts.
12/
But, and this is a big but, they only sold 42% of the tokens in the ICO, which had a seed round, presale, and public sale. That means the team controls the remaining 58% of tokens. See the token breakdown below from their Medium article.
But, and this is a big but, they only sold 42% of the tokens in the ICO, which had a seed round, presale, and public sale. That means the team controls the remaining 58% of tokens. See the token breakdown below from their Medium article.
13/
I know I am a skeptic, but I have a hard time believing crypto projects these days. Sure, they say funds are going to be used for this or that, but there is no guarantee or accountability really. These metrics make it really difficult to get excited about $LTO
I know I am a skeptic, but I have a hard time believing crypto projects these days. Sure, they say funds are going to be used for this or that, but there is no guarantee or accountability really. These metrics make it really difficult to get excited about $LTO
14/
They put mechanics in the ICO to try and make it look like it isn't that big of a deal that they only sold a small number of tokens, but they did a poor job of being convincing (to me at least). Things like lockups, a troll bridge, and claims that tokens won't be dumped.
They put mechanics in the ICO to try and make it look like it isn't that big of a deal that they only sold a small number of tokens, but they did a poor job of being convincing (to me at least). Things like lockups, a troll bridge, and claims that tokens won't be dumped.
15/
First - the lockups. Basically 90% of the total supply will be "in the wild" by Jan 17, 2020. All lockups except the foundation will be unlocked between 7-12 months. For me, I would have preferred lockups to vest over a 3-4 year period considering how big the amount is.
First - the lockups. Basically 90% of the total supply will be "in the wild" by Jan 17, 2020. All lockups except the foundation will be unlocked between 7-12 months. For me, I would have preferred lockups to vest over a 3-4 year period considering how big the amount is.
16/
This is the ERC20 pie chart. 85% of the entire ERC20 supply at time of writing is controlled by the top 5 holders. That's not a typo - I said the TOP FIVE HOLD 85% (granted the ERC20 coins are only ~12% of total supply).
This is the ERC20 pie chart. 85% of the entire ERC20 supply at time of writing is controlled by the top 5 holders. That's not a typo - I said the TOP FIVE HOLD 85% (granted the ERC20 coins are only ~12% of total supply).
17/
Before going on, I need to explain that they have 2 tokens. A mainnet token and an ERC20 token. The ERC20 token is the one that is trading on exchanges while the mainnet token is used by the platform. They can be converted back and forth via the Troll Bridge
Before going on, I need to explain that they have 2 tokens. A mainnet token and an ERC20 token. The ERC20 token is the one that is trading on exchanges while the mainnet token is used by the platform. They can be converted back and forth via the Troll Bridge
18/
Now, the troll bridge - I like the idea of it, but HATE the way $LTO implemented it. Their documentation makes it sound like it's some drastic measure that makes the tokens dump-proof by forcing a % fee to convert mainnet tokens to ERC20
Now, the troll bridge - I like the idea of it, but HATE the way $LTO implemented it. Their documentation makes it sound like it's some drastic measure that makes the tokens dump-proof by forcing a % fee to convert mainnet tokens to ERC20
19/
But, when I actually took a look at the fee curve, it basically just means it'll only be 2-3 months before tokens get dumped because the % fee goes from 55% after ICO to ~10% at 3 months. The seed/private sale buyers got 15-40% bonuses, so I doubt they care about that 10%
But, when I actually took a look at the fee curve, it basically just means it'll only be 2-3 months before tokens get dumped because the % fee goes from 55% after ICO to ~10% at 3 months. The seed/private sale buyers got 15-40% bonuses, so I doubt they care about that 10%
20/
If they had done a linear fee reduction of 5-10% per month that would have been much better to ensure coins didn't get dumped on the market. Current structure has fee going to basically 0 after 6 months.
If they had done a linear fee reduction of 5-10% per month that would have been much better to ensure coins didn't get dumped on the market. Current structure has fee going to basically 0 after 6 months.
21/
This is a super misleading P&L statement since projections for 2020-21 are basically useless for a project like this - they shouldn't be relied upon at all. One thing that does stand out to me though is the $1M liquidity/exchanges line item in Q1 2019 (fwiw)
This is a super misleading P&L statement since projections for 2020-21 are basically useless for a project like this - they shouldn't be relied upon at all. One thing that does stand out to me though is the $1M liquidity/exchanges line item in Q1 2019 (fwiw)
22/
Now the weakness most utility tokens share - I just don't see that much actual value in their token. Sure, they have an underlying business generating revenue, BUT HOLDING THEIR TOKEN DOES NOT ENTITLE YOU TO ANY OF THOSE REVENUES.
Now the weakness most utility tokens share - I just don't see that much actual value in their token. Sure, they have an underlying business generating revenue, BUT HOLDING THEIR TOKEN DOES NOT ENTITLE YOU TO ANY OF THOSE REVENUES.
23/
The only real value for the $LTO token is transacting with the network. While businesses will need tokens for this purpose, most of the time those will be given away in exchange for partnerships. Businesses def won't be paying a lot of money for these tokens.
The only real value for the $LTO token is transacting with the network. While businesses will need tokens for this purpose, most of the time those will be given away in exchange for partnerships. Businesses def won't be paying a lot of money for these tokens.
24/
So, in conclusion, I see a ton of value in the actual project itself and what they are doing. I think it has real world use cases and could be big, but I just don't see where the value of the $LTO token will come from in the long term.
So, in conclusion, I see a ton of value in the actual project itself and what they are doing. I think it has real world use cases and could be big, but I just don't see where the value of the $LTO token will come from in the long term.
25/
Special thanks to those who helped with various aspects of info gathering:
@KRMA_0 @CryptoMaestro @cryptonephilim @Brad_Laurie @CryptoCalibur @LTOnetwork
Additional Reading:
cryptocalibur.com/lto-network-ic…
medium.com/the-birb-nest/…
medium.com/@LTOnetwork
Special thanks to those who helped with various aspects of info gathering:
@KRMA_0 @CryptoMaestro @cryptonephilim @Brad_Laurie @CryptoCalibur @LTOnetwork
Additional Reading:
cryptocalibur.com/lto-network-ic…
medium.com/the-birb-nest/…
medium.com/@LTOnetwork
