Cannabis grower Apothio has raised $330,000 in a lawsuit against Kern County, California through the so-called initial litigation offer on the Republic Investment Platform.
U.S. dollar investment is accepted, but the investment certificate is issued as a digital token on Avalanche (AVAX) Blockchain network. This is the first initial litigation offer (ILO) Republic The platform was launched in 2016 and is designed for equity Crowdfunding.
Cannabis growers are seek The representative and the California Department of Fish and Wildlife allegedly flattened 450 acres of crops worth up to $1 billion, and the county received compensation.
Kyle Roche, a lawyer for Apothio, told Cointelegraph that there are many benefits to investing in a legal case for crowdfunding through cryptocurrency:
“The court system works well, but it’s expensive. If you can resolve cost-based barriers by allowing capital to flow into the system that needs it, I believe the ILO can become a positive force for access to justice.”
Litigation fund investment means that third-party investors who have nothing to do with the case can provide funds to litigants in court cases and obtain a return on investment based on the outcome of the case. According to the regulations of the International Labor Organization, fund donors receive digital tokens, which entitles them to receive a portion of any damages recovered as a result of a case decision.
According to the report on December 7, 2021, the global investment market for litigation funds in 2019 was valued at US$11.4 billion and is expected to more than double by 2028 to reach US$24 billion. Research nest.
Roche pointed out that although the market is growing, it is mainly reserved for private institutions. He hopes that as more and more cases use the ILO, cryptocurrency will lower the high barriers to legal investment:
“Using encryption is not a challenge, but we need to ensure that the regulatory tools are applicable to what the ILO is doing.”
The cannabis grower’s case has exceeded the minimum target of the lawsuit by $250,000. ILO tokens will be frozen in the investor’s wallet for 90 days, after which they can be transferred.
After the judgment of the case, the token holders will receive any rewards they may obtain, and the tokens will be frozen again. As the case progresses after the tokens are unlocked, the speculative market for tokens may open, as investors may wish to sell or buy more shares in the outcome of the case.
In 2021, Roche’s law firm began to develop a plan to launch its own tokenized ILO market Ryval, which is currently in Avalanche developmentRoche hopes that the ILO concept will become popular in the United States and around the world through Ryval.
The ILO concept also introduces another way for cryptocurrencies to adopt real-world applications through tokenization. The investment of litigation funds will be added to modern art through intangible tokens (NFT), Social media interaction, Real estate investment,even Oil and gas industry As a tokenized industry, it is becoming a reality.