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Fintech company (blockchain concept): LongFin Corp (LFIN) (2017)

LongFin Corp. (NASDAQ: LFIN) was established in Delaware, USA on February 1, 2017. It is headquartered in New York City, New York, USA. It has 18 full-time employees. It is a global financial technology company that is powered by artificial intelligence (AI ) And machine learning to provide support. On June 19, 2017, LongFin Corp acquired LongFin Tradex Pte. Ltd in Singapore, which provides trade financing solutions, and listed on NASDAQ on December 13, 2017. Two days later, on December 15, the acquisition area A global microfinance solution provider authorized by the blockchain entered the blockchain field. On December 18, the stock price soared by more than 470%.

LongFin Corp.

LongFin Corp (LFIN):

LongFin Corp. through its wholly-owned subsidiary Stampede Tradex Pte. Ltd. provides foreign exchange and financial solutions to importers and exporters and SMEs. Currently, Longfin has operations in London, Singapore, Dubai, New York, Miami and India.

LongFin mainly provides structured bulk commodity trade financing solutions for small and medium-sized enterprises and banks; in addition, it also uses its own artificial intelligence and machine learning technology to develop and research an electronic market maker platform to provide corresponding solutions for exchanges, brokers and banks. solution.

LongFin business is divided into:

  1. Block chain : providing a block chain solutions provider, to provide micro-credit loan mortgage warehouse in the form of Ziddu currency (Ziddu Coin) is. Ziddu Coin is a smart contract that enables SMEs, processors, manufacturers, importers and exporters to use cryptocurrencies on all continents. Ziddu.com is a “blockchain-driven global microfinance solution provider”, only used for cryptocurrency transactions.
  2. Structured bulk commodity trade financing : refers to the trade process as the whole financing object, and by matching these financing methods, enterprises can obtain trade financing services that reduce the pressure on their own funds and reduce the pressure on their own funds by matching these financing methods. The two concepts of trade finance are selectively integrated. LongFin’s specific operation method is to match importers and exporters in the form of a third-party platform to make profits through the bid-ask spread. LongFin issues a 180-365-day forward letter of credit to the importer to ensure that the importer can make a profit when it expires. At the same time, LongFin conducts face-to-face transactions with the exporter to save unnecessary expenses. The price difference between the import and export parties is LongFin’s arbitrage. space.
  3. Alternative risk transfer financing: For importers in some low-credit countries, LongFin will contact insurance companies to provide them with comprehensive insurance and increase their credit ratings, and then provide financing and loans to them to distribute risks to insurance companies reasonably. LongFin provides short-term loans not exceeding 270 days.
  4. Spread trading : LongFin invests available funds in currencies with higher returns in emerging markets to earn high profits; at the same time, it provides forward foreign exchange trading services without principal delivery for volatile commodities.

LongFin investment highlights:

  1. Unique electronic market maker platform : LongFin’s electronic market maker is developed using artificial intelligence and other technologies, which can provide ultra-low latency and more powerful transaction commands. The platform can complete more than 2500 transactions per second, and The delay is less than 3-4 milliseconds. The platform can be directly connected to exchanges and banks. It is very safe and easy to expand. McKinsey once ranked it as the second place among 12 platforms of the same type. LongFin plans to connect the platform to 70 foreign exchange exchanges and at least 300 banking institutions worldwide.
  2. Trillions of trade finance market : The global trade market is constantly expanding, resulting in a growing gap between trade flows and financing mechanisms. According to data from the Bank for International Settlements, the global trade finance demand in 2014 was as high as 6.5-8 trillion US dollars. In 2015, the global trade financing shortfall of 1.6 trillion US dollars was irrecoverable by financial institutions, of which 690 billion US dollars came from Asia and 200 billion US dollars. The dollar comes from Africa. Such huge demand provides a broad market for non-bank financing institutions such as LongFin.
  3. The rapid development of non-bank liquidity providers : Since the financial crisis, technology-based non-bank liquidity providers have developed rapidly, especially in the foreign exchange market. In 2015, the share of non-bank liquidity providers in the foreign exchange market was about 20%, an increase of 16% over 2014, and this number will reach 30-35% next year. The huge trading volume of the foreign exchange market also provides a good development space for this institution, with a daily foreign exchange transaction volume of up to 5 trillion US dollars. At the same time, in recent years, there have been fewer and fewer scattered trading customers in trade, and the number of multi-merchant transaction platforms (MDP) like LongFin has increased. Since 2008, MDP has increased by 32%, while fragmented transactions have fallen by 50%.

It is worth noting that this time LFIN company adopted the latest US financing IPO method: RegA+

RegA+IPO is still a very novel financing method for the market.

The US Securities and Exchange Commission (SEC) passed the newly revised RegA+ regulations in 2015, which aims to create better, easier to operate, and more effective financing channels and methods for more small and medium-sized enterprises and start-ups. For many small and medium-sized enterprises and start-up companies that are facing financing difficulties, this is a financing method worth trying. What exactly is Reg A+? How does the Reg A+ regulation help SMEs to raise funds more effectively?

The US Reg A+, a regulation that facilitates listing and financing of SMEs, has effectively helped many SMEs to solve their financing difficulties in a short period of time. At the same time, a securities trading market with high liquidity, active transactions, convenient trading systems, and mature mechanisms can help companies achieve stock price stability and a reasonable company market value after listing, thereby further reducing the company’s financing costs.

Zhu Lijie, Managing Director of Dragon Gate Capital, said: Reg A+ is a regulation of the JOBS Act in 2012 and was formally implemented in 2015. The content of the regulation is to allow small and medium-sized enterprises to pass this regulation to raise up to 50 million US dollars from public investors within a year. Reg A+ allows companies to use equity crowdfunding to offer and sell their securities without having to register the securities with the SEC (only a notice is required, which is much simpler than a registration statement). At the same time, the company applying for Reg A+ needs to be a company registered in the United States or Canada.

  • First, the priority jurisdiction of the Blue Sky Law successfully exempted the review of the Blue Sky Law from the state government, which accelerated the financing process;
  • Second, with the new setting of the “test the waters” process, underwriters and companies are allowed to test the waters of potential investment opportunities with all investors, which will save financiers a huge cost;
  • Third, the scale of issuance. Compared with traditional IPOs, the overall requirements for information disclosure will be much lower;
  • Fourth, the financial reporting system is revised. Most companies will implement a simplified information disclosure system from four times a year to twice a year;
  • Fifth, for resale issuance, companies can choose to seek to trade their issued shares as part of a public listing or as part of an IPO.

These five amendments speed up the time required for financing and reduce the cost of the financing process. They also reflect that the US regulators also encourage SMEs to raise funds through Reg A+.

How to raise funds in the financial market, who to find financing, and where to find financing, have always been several issues that entrepreneurs around the world have to face when they grow their businesses. If you want to make your business bigger and stronger, but fail to meet the basic requirements of an initial public offering (IPO), then LFIN’s new financing IPO method provides a new channel for enterprises.

Note: The above content is from the WeChat public account @ 花街 Perspective

LongFin Corp (LFIN) investment:

LongFin Corp. (NASDAQ: LFIN) landed on Nasdaq on December 13, 2017, and issued 10 million Class A common shares. The IPO price range is US$5 per share and the proposed financing amount is US$50 million. Code: LFIN.

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