ICO Focus: Interview With Alexander Smirnov of LH-Crypto

The market of cryptocurrency, as a new way of earning, remains nascent and is at the stage of growth. It gives anyone the opportunity to make money by investing in a cryptocurrency and by trading – it does not require large financial investments and and with little knowledge one should be able to understand this field. The company Larson&Holz proposes a new solution in the field of earnings on the cryptocurrency, it has developed the project of the world’s first crypto-broker LH-Crypto. We have spoken with the Executive Director on internal audit of Larson&Holz – Alexander Smirnov, to find out what is a crypto-broker and what opportunities of income it gives to its users and investors.

Alexander, would you tell us a little bit about the activities of the company Larson&Holz. What actually is it and whom is it working with?

The company Larson&Holz is a financial company. We work with an audience which we call traders. The trading community is large enough, the attitude to it can be very different. I think lots of people have their own experiences with the financial markets in Russia as well as abroad. We are specializing in the classic markets – stock market, currency market, we work on the Forex market  and with binary options.

What is the main idea of your project Lh-Crypto?

To realize the essence of our project, I would like to start with some background. On the 9th of September we adopted cryptocurrencies as working financial instruments which along with conventional currencies, stocks and commodities are traded on major financial markets. Of course, this laid the groundwork for a number of our ideas, so it didn’t take long to see their implementation. On the 23rd of October the magazine “CoinJournal” posted our project of creation of the first crypto-broker, and this information started actively spreading on the Internet. The next day we were interviewed by Mr. Jan Art, who is the Vice-President of the Bank of Russia, and is also one of the analysts and experts of the State Duma Committee on financial market.

What actually is the essence of your project?

Within the frameworks of our project we want not only to disseminate information about financial markets, giving people the opportunity to earn on speculative operations. In our project we propose the most conservative scheme, as we know that in most cases the financial market has high risks. We entered the market under the name “LHCoin – token with a monthly income from operating activities of the broker.” We offer the following to investors: with the help of energy traders, who exist everywhere, and it’s a special class of people, to give the most conservative clients the opportunity to earn, and earnings are guaranteed. And we have placed it on record that the level of income of the first year of our project will be 20% of invested funds, and with this projection, we have put the reputation of the company on the line because of the amount of belief we have about the project. Our company has existed for more than 20 years (on the Russian market since 2004 year).

 What is the point of a business scheme you have developed which will give your clients the opportunity to earn?

We have developed a project of the first crypto broker. It is necessary not to confuse crypto-broker with crypto-exchanges, where people convert some types of cryptocurrencies into the other, turning them into fiat money and vice versa. Broker companies have a much wider range of services – first of all, analytical centers, collecting of analytics, a work through specialized terminals which have fairly well developed tools for decision-making. And the most important thing that the broker company lend according to the system of so-called marginal lending – when in real time with small changes in prices a trader can quickly earn a lot of money. Of course, he should understand that there is a substantial risk.

How did you get the idea of creating a crypto-broker?

First of all, this idea appeared due to the fact that our industry – the industry of trading in the stock markets – has several major drawbacks, which can does not pertain with the crypto-community. First and foremost is that in most cases clients open brokerage accounts in dollars or euros. This complicates the life of those market participants who are in other jurisdictions, where there is a certain level of regulation – particularly in Arab countries, partly in Asia. Usually, these countries are trying to restrict the activities of the companies of the international level. And, as you see, crypto-approach allows us to lift these restrictions . The most important fact is that usually when the broker company perform calculations with our customers to send funds, to withdraw funds in the form of fiat currency, certainly we bear some expenses. According to our calculations, they amount to 5-6%. Moving to crypto-calculations with our customers  via, for example, ethereum and bitcoin, we save significantly and get enough benefits for the broker. However, when creating the project of crypto-broker, we don’t want to leave the money with us. We just want to give it to our investors, who will give us the momentum to create a crypto project as a part of our ICO. The 30th of October we started our PreICO. PreICO  presents a most favorable arrangement for people to earn more of our tokens.

What amount of funds do you expect to attract with this crowdsale?

The minimum amount we seek to raise is a million dollars and we have a maximum cap of about 50 Million. We aim to use realized funds to make the dream of our project a reality whiles giving investors an opportunity to earn passive income at the same time.

How will the sale of LHCoins be organized?

The sale period of LHCoin on ICO is divided into 3 parts: PreICO in which is ongoing, ICO, and Post-ICO, when the token is ready to enter the stock market. The price of the token will be determined by the funds collected at PreICO. However, if we do not reach this amount of 1,000,000 USD, according to our smart – contract based on the Ethereum platform, these funds will be automatically returned to all buyers of our tokens. So here there are no risks. However, we will establish the initial value of the token according to the funds collected on PreICO. The formula is quite simple: the amount collected divided into 200 000 000 tokens. However, we guarantee that the price of the first token will not be below 10 US cents. Further, with the development of the situation on the ICO, within 1 month we will artificially increase the value of token by 5%, 10%, 15% and 21%. And than we have a program “Early Bird Bonus”. According to this program, all people who have bought tokens at PreICO and during the first week of the ICO will already receive income in  ethereum from those who enter the market of our tokens on the 2nd, 3rd and 4th weeks. Thus, this project allows its investors to have an income in ethereum in their wallets immediately, without waiting for the start of the project. This is why we have divided our project into 3 parts, we say that the participants of the PreICO will get the best price.

What are the terms and conditions of entry for LHCoin on the stock market?

It depends on the amount that we collect during PreICO. Ideally, we would like to launch our token on the stock exchange in 3 to 6 months.

Why do you think the token LHCoin will be supported by its holders?

We divide the tokens into 3 parts, one of which goes to those people who support the project in the sphere of computer science and promotion (30% of the issued tokens). We call this part of the tokens LHCoin bounty. They don’t participate in the system of passive income. We give them to those who are involved in promotion of the project. As for those tokens that are sold for ethereum or for fiat currency, there will be 70% of them. As soon as the campaign ends on the ICO, the bounty tokens will also be the usual tokens and can be monetized.

How will the situation develop after the token LHCoin enter the stock market?

This is where the fun begins. The 5% which we save by moving of the project to crypto-calculations, we want to give our investors according to the system of “CASHBACK”. All further money receipt from crypto-broker activities gives the opportunity to obtain passive income to the holders of tokens. There is no sense in selling the tokens which generate revenue, so they will continue to remain on the exchange. Although there is the possibility to sell them.

What purposes do you pursue, while implementing the project LH-Crypto?

We do not only seek to serve the blockchain community, we also want to create a payment system which will increase our audience. We are the first brokers to announce the creation of the crypto broker. We have a business model that has been successfully operating for 12 years, as such this gives us a solid grounding. The income we receive from our customers of the crypto-community, gives us the opportunity to guarantee. Here we see Token Rate Insurance System, which allows us to guarantee the minimum rate of return of the token at 20% of its value at the end of the year. If at the end of the year the price quotation of the token has fallen, then the company assures that it will add the remaining amount from its own funds – this is the main idea of our project. In fact, we are putting the reputation of the long-existing company on the line. Moreover, we are well aware that the funds received from work of a fiat broker, will allow us to take these risks, and not to shift the responsibility to our investors.

 A broker, who begins to work in the crypto-environment should have the appropriate licensing. Does your company have it?

We have a licensing that allows us to work with the cryptocurrency and on financial markets (including Forex) – Vanuatu Financial Services Commission N177. Our project is based on an already operating company, so the beneficiary and the guarantor will be the Forex broker Larson&Holz IT Ltd.  The project “ICO crypto-broker” will be supervised by the division of Larson&Holz IT Ltd. in accordance with the legislation of the Republic of Vanuatu.

Thanks for your time and detailed conversation Alexander, we wish you a successful sale.

Thanks a lot for your support as well ICoWatchlist.

For more details, follow the LH-Crypto ICO here.

Disclaimer: This write-up is sponsored and does not fully reflect the opinions of any ICOWatchlist employee. It is not an investment or trading guide. It is advisable that you do your own independent research.