Largo Coin Limited has launched a blockchain-enabled warranty service targeted at securing private investors’ funds. This project looks to partner with startups and established firms by providing a trustless investment relations solution.
Largo Coin has introduced a new iteration of investment insurance service by adopting blockchain and cryptocurrency to improve investor relations. The new product provides warranty functionalities to startups and established firms looking to enable a transparent and seamless means of insuring investors’ funds. The platform is currently onboarding businesses interested in boosting their appeal in the global investment landscape and reducing the risks their investors are exposed to.
Remarkably, Largo’s investment insurance template does not operate as a holistic intermediary between registered businesses and their investors. Rather, the platform creates a granular relationship with each investor and offers individuals warranty services based on specified partnership agreements between both parties involved in the deal. Hence, Largo is obligated to ensure that its partner companies fulfil their side of the deal and protect the interests of investors.
Importantly, Largo has opted for blockchain technology as the bedrock for its warranty service to establish a transparent ecosystem where businesses and investors can both co-exist. The platform releases its native LRG coin, equivalent to the amount paid as an investment to a partner company, to an investor’s personal Largo Coin Wallet as soon as the investor and the company sign an agreement.
From the information made available, it is clear that the value of the coins released to the investor corresponds to the value of the investment paid to the company at the exact moment both parties signed the agreement. As at press time, the price of the LRG token was hovering around the $9 mark, with CoinMarketCap's chart showing that it has a strong correlation with BTC. Interestingly, the market cap of the token is set at 200,000 LRG tokens, which the platform describes as an effective way of ensuring that the token retains its value.
What Happens to The Warranty?
The funds paid into the personal wallet becomes the property of the investors until the partner company fulfils all its obligations as stated in the original agreement. Furthermore, Largo explains that investors are protected from investment risks if they hold on to the warranty. According to the startup, the warranty agreement allows investors to withdraw funds from their wallets, which they must return within 12 hours from the time of withdrawal. Failure to adhere to this term automatically nullifies the warranty agreement.
In cases where the company is unable to deliver on its promises, the investors have the right to sell the tokens to mitigate losses. Largo will carry out process integrity and compliance monitoring to ensure that both sides live up to the ends of the bargain. To do this, Largo has introduced an automated way of ascertaining the presence of coins in wallets.
Additionally, the platform covers, on behalf of its partner companies, the regulatory liabilities and obligations relating to cryptocurrency, insurance, and warranty. Moreover, Largo is responsible for verifying the legality of companies before onboarding them to its investment insurance platform. In terms of security, the platform has incorporated a Proof of stake blockchain architecture to secure funds and provide a sophisticated validation mechanism.
Largo Reinvents Deal Insurance and Escrow Services
Besides offering investment warranty service, Largo has conceived and effected a new method of providing a trustless ecosystem for domestic and international B2B and B2C trades. To achieve this innovation, the platform relies on the distributed nature of blockchain technology, the effectiveness of smart contracts, and the versatility of fintech. Largo enables escrow and deal insurance services ideal for the increasingly globalized and digitized economy.
Largo’s blueprint is reminiscent of decentralized finance, which offers a trustless and transparent form of managing, executing, and reporting transactions. Also, its innovation is a DeFi-enabled system characterized by censorship-resistant capabilities. The startup has opted for blockchain technology as the bedrock for its products. Therefore, smart contracts play a vital role in the operations of its escrow services, which means that there is no need for middlemen factors – in turn, making the system impervious to human errors. In practice, the system offers a common ground for the two parties involved in a deal or trade.
According to Largo, both parties can come up and agree with the terms of the contract upholding the validity of their deal. Next, the buyer will purchase an amount of LRG coin equivalent to 15% of the payment he is expected to transfer to the seller as insurance cover. Once this is done, Largo Platform pays and locks the equivalent of the initial cost of the transaction to the buyer’s Largo Coin Wallet.
If the transaction between the buyer and the seller goes according to plan, Largo Platform will retrieve the LRG coin deposited in the buyer’s wallet.
If not – that is the seller fails to deliver –, the LRG coins are unlocked, and the buyer can sell it on a crypto exchange as a refund.
Largo hopes to reinvent the insurance industry by instantly reimbursing funds to aggrieved parties of trades and deals, eliminating the time-consuming processes of claiming insurance, and providing universal insurance and escrow products.