An anonymous reader quotes a report from the website, which states that a new tech startup plans to become "the stock market of litigation financing" by allowing everyday Americans to bet on civil lawsuits through the purchase and trade of associatedcryptocurrencies. The company hopes to provide funding to individuals who would not be able to pursue claims. "Our goal is to make access to justice more affordable," said Kyle Roche, one of the startup's founders. "I want to make the federal court system more accessible for all." The company took advantage of a rule created by the former President that allowed a private company to crowdfund up to $5 million from Americans regardless of their wealth. All investors regardless of accreditation status will be able to purchase and hold the same token for a specific case on the open market. The person who owns the token at the time of a settlement or verdict cashes in. The sale of token is dubbed an "initial litigation offering" by the team. Wealthy and sophisticated "accredited investors" will be able to trade lawsuit token immediately, but non-rich will have to agree to a year-long lockup period, according to Insider.
The concept of litigation funding is not unique. An industry built around the concept has grown in popularity. According to Westfleet Advisors, investors poured $2.5 billion into the litigation funding sector between June and June 2020. Until now, only accredited wealthy investors could put their money into the sector. Through the use of tHe digital currency, it can legally open up access to all. The tokenization of U.S. law will benefit users in a few other ways, including by providing the market with liquidity that previously wasn't available in litigation funding. If someone with a token needs money or believes a case is headed south, they can sell their token to the highest bidder and cash out. As the case develops, the value of a token will rise or fall. The person gets a big ruling from the court, but not a win. He said that the price may go up. Republic and the smart contacts platform have been working with the law firm of Roche's to develop the Ryval. A full team will be announced in the first quarter of the year, according to the predictions of the company.
In the early going, messaging will be very important, which is why for the first few years of the organization, it will be focused on access to justice and taking claims that we believe are good claims. I don't think anyone should be in charge of who gets to go to the courts. I believe that access to the court system should be given to as many people as the justice system can handle. The lawsuits will include antitrust, securities claims, and wrongful terminated. "I don't see anything that I wouldn't categorically not go near," he replied when asked if there were any types of cases that he wouldn't avoid. The basic facts of the case and the procedural elements necessary in order to win will be provided to users by Ryval, as well as other relevant information, to help novices navigate such a complex industry. One of the responsibilities of the platform is to educate the market. Retail investors will gain more than they will lose by entering the legal market, according to the company. "These investments have been very lucrative over the course of the last five to 10 years, and some of the top law firms average antronomical annual percentage rate of 30-to-40 percent," he said. He thinks interest will be high in the event of a downturn since litigation outcomes are market-based.
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