LibreBank. Another failed project or the very investments that will bring you a good profit?

Let’s figure it out.

In previous article I’ve had already told you about stablecoin LibreCash, idea of which is the main source of inspiration and the project’s engine.

I also mentioned LBRS token (LibreBank Reserve Share), which serves as the anchor of LibreCash and is an investment tool — LBRS, actually, will the subject of the current article.

LBRS considered to be an asset of the LibreBank contingency fund. Owners of such an asset have the right to vote in the DAO management in proportion to their share of ownership, and the contingency fund, for its part, ensures the stability of the LibreCash token.

Let’s review it in details using scheme as an example, that was taken from project litepaper.

Please, read scheme from left to right.

1. Asset owners have the ability to manage LibreBank DAO for making common decisions through voting.
2. LibreBank DAO provides the proper functioning of LibreCash stablecoin.
3. LibreBank DAO provides the serviceable and efficient operation of funds.

Accordingly, in rude way, it turns out that investors can independently control their risks by influencing the management of the system. It’s ,to a certain extent , enhances tranquillity of investors regarding the development of the project and, consequently, and facilitates smooth growth of the LBRS rate. But still some risks remain.

Let’s look at them.

It is expected that project will issue 100 bln. LBRS tokens:

1. 50% will be frozen in a smart contract as part of the reserve. This part can be sold only by decision of the DAO, and all funds in the case of a sale will be frozen in the reserve fund.
2. 10% will aim at development of the project (team, partners, marketing, etc.).
3. 10% will be frozen in a smart contract with a uniform grant to the development fund for 4 years.
4. 30% will be available for purchase.

Tokens from paragraph 4 exactly will be allocated between investors. All means will be directed to the reserve fund during their sale.

Since the LBRS rate is to some degree related with LibreBank DAO capitalization , which includes a reserve fund, investors get the first risk — the fall of the LBRS rate when borrowing funds from the reserve fund, if the LibreCash rate (for example, ETH, BTC) will fall. The second risk — LibreBank DAO capitalization downfall with the market overall decline. But here we’ve got more encouraging picture, because the project plans to diversify the risks in the fund with the help of assets such as commodity and gold tokens, stocks, bonds and CDP, and also plans to actively introduce LibreCash into the real sector. And the higher the level of LibreCash integration into the real sector, the less is the necessary volume of the stabilization (reserve) fund. Thus, system will be able to function with partial redundancy in future, because there will be a stable, natural demand for LibreCash.

Anyway , investment risk is inevitable. So, you should be ready for this.

But, aside from the risks, LibreBank’s assets have several benefits that could interest many investors.

Let’s review them.

LibreBank positions itself as a project whose goal is to create a global reserve system and a world non-inflationary currency. The concept of the project is based on the hypothesis of a global redistribution of resources in favor of decentralized financial systems and, consequently, cyclical growth of the index of the Crypto-currency market in the coming decades.

Put simply, LibreBank is betting on the continued growth of the crypto currency market and with the help of stablecoin LibreCash increases its long-term positions.

Since there is crypto-currency market growing and expanding since the birth of bitcoin, and some patient people have already made huge fortunes on this, it can be assumed that such a bet is a good idea.

But does there is any sense to invest in LBRS, when it is possible to diversify the portfolio and enjoy the growth of the market index of the Crypto-currency?

Here some interesting point.

Let’s remember LibreCash with collateral assets, which directed to the reserve fund.

These assets will give a significant part of the increase to the capitalization of LibreBank DAO, and therefore, contribute to an additional increase in the rate of LBRS. The higher popularity of LibreCash, the greater leverage for growth.

In additional, project plans to make a profit in funds from:

1. Emission spread trading (trading inside the corridor between the best bids for the purchase and sale of LibreCash).
2. System commission for the exchange of tokens.
3. Collateral loans, which the bank will provide through its own decentralized platform, using the assets of the fund.
4. Profit from decentralized derivatives issued by LibreBank (futures, options, swaps).

All these points will provide a good stable growth of capitalization from LibreBank.

Which factors can also facilitate to the growth of the LBRS?
This, for example, is a limit on the tokens release — 100 million. Deficiency and imbalance of supply and demand with the growth of the project’s popularity in the future can provoke an accelerated growth rate. An additional deficit in turnover may also result in the freezing of a large number of tokens in a smart contract for the participation of investors in the management of the DAO, and the motivation system will contribute to this.

With the growth of the fund’s profit by the decision of the DAO, it is possible to redeem tokens and their subsequent burning, which will also reduce the number of LBRS in turnover.

And, of course, it would be advisable to participate in the ICO project at the very beginning, because, based on the litepaper project, the starting price for LBRS will be determined in the form of an auction during the pre-sale and after that will increase by 200–1000% in the sale process . That is to say, early investors will get the maximum advantage over the subsequent ones.

Summing up, you can make a verdict that the project does not look like a regular pacifier, and you can make good money on this, especially in the long term. “World economy of the future” — it would be strong word for projects of its kind, but who in general predict for sure the future? Maybe this is exactly the very project that will be one of the first that break into the every person life.

Anyway, you will able to decide.

Precise dates ICO launch currently remain unknown , but it can happen in the near future, so I recommend to “keep one’s finger on the pulse.” And follow the news, for example, here: https://twitter.com/LibreBankDAO

Project’s websites:
https://librebank.com
https://librecash.com
Discussion on bitcointalk: https://bitcointalk.org/index.php?topic=3386155

We will review LiberBank account and funds status page in next articles.

---

Subscribe me on:

Medium: https://medium.com/@max_profit
Telegram: https://t.me/max_prof
Twitter: https://twitter.com/maks_profit
Golos.io: https://golos.io/@maxprofit