Introducing the “exit coin” for the luxury sector

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  2. The crypto Buffett lunch has been postponed. Lucky Warren Buffett.
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  4. A crypto Buffett lunch is on the cards. Poor Warren Buffett.
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While it is true to say that the great ICOmedy festival has died down a fair bit in recent months, it's not quite over yet. Dressed up in all sorts of new cryptoclothes and abbreviations — security token offerings (STOs), token generation events (TGEs), initial exchange offerings (IEOs), stablecoin offerings, etc — we are pleased to inform you, dear readers, that the perpetually preposterous initial coin offering lives on.

On Thursday, the Financial Times's markets news editor, Ben McLannahan, was sent the following (poorly worded) email which referred to an article written by the FT's Gillian Tett on bitcoin.

Good afternoon Mr. Mclannahan... After reading a Financial Times article last night; A fraud or the future? Bots bitcoin debate author Mrs Tett, I wanted take this opportunity to send you our most recent press release personally. I felt compelled to send this to Mrs Tett this morning prior to our release to an excess of 5000 global press at 14:30pm today.

The email was to inform Mrs Tett (apparently via Mr McLannahan) that a £16m mansion in Surrey had been sold to a British businessman in an “inspiring deal” for... cryptocurrency! Specifically, the “prestigious LGC-Coin cryptocurrency”.

In the press release Adrian Flint, a director at Heritage Group, the property developers, says:

Given the rarity of LGC-Coin, and the obvious demand soon after these substantial property transactions conclude, it's clear that demand will certainly outweigh supply. We will be holding the coins for a short period before a liquidation of a specific amount to cover build costs. The rest will be held, due to us being aware of further forthcoming world-first transactions using LGC-Coin.

According to LGC-Coin's website, the maximum supply of the cryptocurrency is 600m. That's the “rarity” Mr Flint refers to (ahem). (We're sure there's loads of obvious demand but we suspect that the “specific amount” Mr Flint talks about could be fairly close to 100 per cent. And that the “short period” he'll be holding the coins before selling them back for spendable currency might already have passed.)

To be fair though, LGC-Coin is trying to break new ground. In cryptoland, we have got used to the idea of the “exit scam”, we now have a new idea: an “exit coin”. The founder, Luke Wilson, explains:

The cryptocurrency community is unfamiliar with the term, but an exit coin is truly what it really is. It allows people to pair other cryptocurrencies with the LGC-Coin and will allow the to purchase luxury items such as property and shortly super-cars. This is why people should turn to us in terms of trust.

Um...?

The LGC-Coin website and white paper are ICOmedy gold. Like the bit about how they're planning to raise $280.5m, 20 per cent of which (so a tidy $56.1m) is to be allocated to the “founders”. Under “the LGC-Coin Core Team”, just one founder is listed, CEO Luke Wilson. This is him (screenshot from the white paper):

And then there's the inevitable bit about saving the world, where the luxury exit coin company will use its considerable expertise to “undertake construction of fresh water wells” in some unspecified villages in some unspecified country in Africa (screenshot from the white paper, again):

There are no dates in the white paper so it's a bit difficult to know which stage we're at in terms of reaching the $280.5m, although the company's website states that the “market cap” of LGC-Coin in a cool $6bn or so (which is quite funny as no exchange seems to list it and it doesn't even feature in the 2,146 rare coins listed on CoinMarketCap). But a YouTube video from July 2018 shows Wilson, saying that the “pre-ICO” had launched:

I would confidently say that around 50 per cent of our pre-ICO has actually been sold tonight at this event, in two hours. People are realising that actually with this coin I can actually make a purchase.

The ICO is now referred to as a TGE in the white paper. The best bit of the white paper, though, has to be the bit wherer we're told that actually this isn't really a cryptocurrency at all, as although LGC-Coin “will be run on the Ethereum open software platform based on blockchain technology”, it is also “able to bypass some of the scalability issues that affect Ethereum”:

LGC-Coin will maintain an internal ledger of all the individuals that hold their LGC-Coin tokens in the LGC-Coin Application. The advantage of this is that LGC-Coin users can use their tokens through the LGC-Coin application, rather than using them directly on the network.

So in other words, all your precious millions will be looked after by the well-established company itself. Seems legit. To da moon!

Related links:
Why security tokens are categorically and absolutely not crypto tokens — FT Alphaville
A failed ICO is trying to flog itself on eBay — FT Alphaville
The Bank of Hodlers [sic] (sigh) — FT Alphaville
ICOmedy — FT Alphaville

  1. The Woz and the crypto wonga
  2. The crypto Buffett lunch has been postponed. Lucky Warren Buffett.
  3. A $100m ICO being sued by the SEC wants more of your money
  4. A crypto Buffett lunch is on the cards. Poor Warren Buffett.
  5. LGC-Coin fights back against the Financial Times
  6. A failed ICO is trying to flog itself on eBay
  7. Crypto-shills
  8. Parliament gets it, crypto-currency bunkum edition
  9. The ICO whose team members are literally cartoon characters
  10. The London School of Cryptonomics
  11. Intel's disruption, and the problem with every token pitch
  12. Buy SEC tokens! Now!
  13. Crypto “hedge fund” update
  14. The CryptoMillionsLotto
  15. We ran away with your bitcoins!! LOL, JK
  16. About that Petro
  17. Michelle Mone brings a touch of the avant-garde to finance
  18. Conservative peer stakes her name on a crypto offering, just as the market crashes
  19. Crypto market put on notice — yet again
  20. ICO regulator anger translator
  21. Kodak makes last desperate bid for relevance with cryptocurrency
  22. Crypto cards just suffered a major setback
  23. Bank analyst very proud of his cryptocurrency mining rig
  24. Crypto startup wants to revive the non-dollar petrocurrency idea
  25. Crypto bust alert [siren]
  26. What ICO valuations tell us about the state of modern monopolies
  27. The Hitchhiker’s Guide To Cryptocurrencies
  28. This is nuts. When’s the crypto crash?
  29. Do crypto enthusiasts fear credit?
  30. What is tokenisation really?
  31. Trouble in ICO paradise
  32. An update on Harry Redknapp’s favourite cryptocurrency
  33. Congratulations on your sudden interest in cryptocurrencies, Harry Redknapp
  34. Crypto-Apple dealer attempts to avoid US regulators — updated
  35. Lol a FoHFs ICO, srsly
  36. The FCA’s belated views on the ICOmedy
  37. The hot new thing in initial coin offerings is…
  38. Dubai or bust for Baroness Bitcoin
  39. Westworld, cryptocurrency, and the gamification of women
  40. Don’t be fooled, the authorities are coming after ICOs
  41. Paris Hilton backs an eyebrow-raising crypto project
  42. So this is what watching a bubble feels like…
  43. Crypto-bailouts for struggling startups
  44. When crypto portfolios go mainstream
  45. What is crypto’s agenda really?
  46. Of crypto-Apples and other fantastical fruit…
  47. Evolution
  48. The best Risk Factors are Crypto Risk Factors
  49. From max to minimum optionality with Dentacoin
  50. Cryptocurrency exchanges could be subject to SEC regulation, too
  51. Three reasons we believe Alphachain is exempt from SEC regulation
  52. In ICO utopia, there is no division of labour
  53. Introducing Alphachain, the Alphaville initial coin offering
  54. Meet Daniel Harrison, the man behind magic money machine Monkey Capital…
  55. ICOs now take Visa (plus other ingenious solicitation temptations!)
  56. ICOs and the money markets
  57. In the crypto world, you can get something for nothing
  58. From dot.comedy to ICOmedy…
  59. What does a crypto startup do with $230m?
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