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For those interested in working in the legal blockchain space

Hello, I’m currently working for a blockchain-based leg blockchainlawyer01/29/18
The Patent office already takes care of the "authenticity" p jackofspeed01/29/18
I'm impressed- this is quite buzzword compliant. You're only phillydoucherocket01/30/18
I read the executive summary and glossed over the rest. FYI canon8302/09/18
Hi jackofspeed, Thanks for your comment, it's a good insi blockchainlawyer01/30/18
im in. ezrachomsky at gmail ezratheengineer01/30/18
I like the font. isthisit01/30/18
It’s a solution in search of a problem. Why would any dingbat01/30/18
I think the hypothesis is that eventually the buyers and sel jackofspeed02/02/18
It occurs to me due to the recent popularity of the crypto c jackofspeed02/02/18
still not seeing why anyone would use it dingbat02/10/18
Yeah I was hoping OP would have followed up with more inform jackofspeed02/10/18
There isn’t. I cant see why anyone woud ever use it dingbat02/10/18
Hey guys, Sorry for the delay in getting back to you and blockchainlawyer02/12/18
I think this is a shill move. Please disclose more informat canon8302/14/18
blockchainlawyer (Jan 29, 2018 - 4:22 pm)

Hello,

I’m currently working for a blockchain-based legal company called LEXIT, which is launching a mergers and acquisitions marketplace.

I have a little proposition for you.

I want to get your comments and opinions on LEXIT’s idea.

Here is a link to their white paper:

https://www.lexit.co/resources/whitepaper

Please have a read of it

If you are feeling lazy, I guess the executive summary is enough.

If possible, I’d like to create a little conversation on this forum with you guys about what LEXIT are attempting to do.

What do you think works / doesn’t work about their idea?

What challenges might be encountered in future?

How could it be improved?

Why might someone choose the LEXIT platform over traditional M&A services or why not?

You get the idea.

Then, I will invite a number of contributors who have made valid and constructive criticisms on the forum to get involved with LEXIT’s project alongside a number of thought-leaders, investors, lawyers, and tech guys in the blockchain space.

This would be a great opportunity if you want to get experience with professionals in the most exciting tech space around. Also, for those who contribute to the project, LEXIT is in a position to offer for free, ‘tokens’ (akin to digital shares) in the company.

Possession of the tokens will also allow you to access the LEXIT platform and provide M&A services in future (a kind of virtual job, if you will).

The project is very cool and is coming to market and I’m hoping the community joins LEXIT and the M&A revolution.

I look forward to your comments and criticisms, all are welcome, big or small.

Thanks so much.

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jackofspeed (Jan 29, 2018 - 5:07 pm)

The Patent office already takes care of the "authenticity" problem in the creation of IP. What problem does this product actually solve?

Most IP isn't marketable because few buyers know they need it. (As for thieves, they know they need a license, but they ain't paying.) And some forms of soft IP are only valuable while they are in use anyway (trademarks.)

As for M&A for small and medium-sized businesses, why would a small business want to "escrow" and digitize the "proof of ownership and list of assets" on a blockchain system. Yes, if I run a small business and I make all my financials public I'll be much more liquid, but if it's publicly viewable my competitors can be expected to use that knowledge against me.

Edited to add:
That said it's an interesting white paper and a reasonable idea. Most small businesses are unable to keep their books and legal formalities in inspection ready status on an ongoing basis (hence the end-of-quarter and end-of-year rigamarole. And due diligence for deals, too.)

Theoretically that data should be easy to keep in one spot, but lots of small businesses keep poor records of 'corporate governance' stuff. It's just not a priority.

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phillydoucherocket (Jan 30, 2018 - 12:02 pm)

I'm impressed- this is quite buzzword compliant. You're only missing AI and onion routing to make it cooler.

Combining the ICO with some handwaving about how this is a ground floor opportunity is a solid marketing plan.

I'm familiar with crypto and blockchains- it's an interesting idea chasing few real-world uses.

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canon83 (Feb 9, 2018 - 5:37 pm)

I read the executive summary and glossed over the rest. FYI - The language used in certain sections look plagiarized. You may have copied and pasted like many other white paper drafters. It looks very familiar.

1. Which problem(s) does LEXIT intend to solve? Buyers and sellers do not want transparency in value or price discovery. Private businesses generally do not want to disclose or have their financial information publicly available or even on a private chain where data can be leaked or subject to government review.

2. You are better off being compliant with the SEC so you can tap into the US market. It's my understanding that exchanges will delist "alt" coins they may be deemed a security by the SEC. If coin exchanges are not willing to add you, you have zero liquidity and your blockchain does not run. IMO, you will see a consolidation of exchanges. Once alt coins are delisted, fees go down dramatically and it becomes left profitable.

3. The costs of M&A for small businesses are reasonable. How much will LEXIT cost?

4. Token based Blockchains are now known to be "scammy". Are you incentivizing people through an expectation of profit from coins issued to support the digital infrastructure that runs the blockchain? That is very 2016.

5. The true value of a white paper is the team of founders. You need to disclose details of each co-founder, including yourself.

6. I am aware of 5 other whitepapers dedicated to solving something relating to M&A's.

7. Does your notice section serve as a disclosure for risk? It's not sufficient based on some white papers the community considers legit.

8. Email me for more comments (canon83.com at gmail)

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blockchainlawyer (Jan 30, 2018 - 4:36 am)

Hi jackofspeed,

Thanks for your comment, it's a good insight. There doesn't seem to be a private message function here. How can I best contact you?

If there is anyone else who would like to get involved with the project, please do continue to comment on the thread!

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ezratheengineer (Jan 30, 2018 - 9:20 am)

im in. ezrachomsky at gmail

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isthisit (Jan 30, 2018 - 1:49 pm)

I like the font.

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dingbat (Jan 30, 2018 - 9:20 pm)

It’s a solution in search of a problem.

Why would anyone use your finished product?

The first question I ask every startup is “why would someone pay you?”
If you can’t provide a short answer that holds up to scrutiny, don’t bother. I don’t even see a long answer here.

Problem: your product requires commoditizing things that not only don’t lend themselves to commoditization, but actually require injury to the end user to be accomplished. No way in a million years would it make sense for a business to use your product

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jackofspeed (Feb 2, 2018 - 9:47 am)

I think the hypothesis is that eventually the buyers and sellers would transact in the LEXIT token-which if it blows up like Bitcoin recently did, would allow the companies to claim very high valuations.

I'm only familiar with the US tax regime, but some countries may allow for deferment of realization of gains and losses until the tokens are converted into currency. An accounting trick of course: the economic reality is the same if it's characterized in dollars, yen, Bitcoin, or cowrie shells. If there is an accession to wealth it is taxable sooner or later.

The extreme volatility of the crypto currencies against legal currencies adds to the argument against their use for bookkeeping-the numbers just jump around too much.

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jackofspeed (Feb 2, 2018 - 10:28 am)

It occurs to me due to the recent popularity of the crypto currencies, a lot of folks are going to get their first introduction to FBAR and FinCEN reporting.

Good luck! (And don't wait until April 15)

Here's a taste:

Who Must File an FBAR
United States persons are required to file an FBAR if:

the United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

United States person includes U.S. citizens; U.S. residents; entities, including but not limited to, corporations, partnerships, or limited liability companies, created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.

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dingbat (Feb 10, 2018 - 7:57 am)

still not seeing why anyone would use it

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jackofspeed (Feb 10, 2018 - 5:24 pm)

Yeah I was hoping OP would have followed up with more information. Several posters have put in useful analysis. It really would have been interesting to get his answers to drill down and see if there's something real there.

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dingbat (Feb 10, 2018 - 8:26 pm)

There isn’t.

I cant see why anyone woud ever use it

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blockchainlawyer (Feb 12, 2018 - 9:46 am)

Hey guys,

Sorry for the delay in getting back to you and thanks for all the interesting points you've made.

Particularly you jackofspeed - I tried to contact you for your further input in a discussion group but realized there's no private message function here! maybe I should've planned that better...

As discussed, Lexit are looking for bright legal tech aware people who want to contribute to their platform, so, for all of you interested, head over to https://www.lexit.co/airdrop and sign up to receive a digital token and get involved. It's an interesting little project.

Cheers!

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canon83 (Feb 14, 2018 - 2:31 pm)

I think this is a shill move. Please disclose more information on the founders.

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