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The Avalanche Protocol Team Announces the Launch of "Initial Litigation Offering", Aiming to Attract Litigation Financing

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An Initial Litigation Offering is a litigation financing product that allows the use of blockchain technology and is open to all investors.

Rhythm BlockBeats news, on December 15th, Avalanche Protocol issued a document announcing that Roche Cyrulnik Freedman LLP and Republic Advisory Services will launch the "Initial Litigation Offerings (ILO)", hoping that through this way to attract the $10 billion litigation financing asset class to Avalanche Protocol. The Initial Litigation Offering is a blockchain-based litigation financing product open to all investors.

Litigation funding, also known as legal financing and third-party litigation funding, provides assistance to individuals who lack the necessary resources Provides the funds necessary to litigate or arbitrate civil claims. The ILO raises the funds needed to litigate these cases and marks economic rights in such claims. Each token indirectly represents a legal claim to a portion of the potential financial recovery that has been converted into a digital asset.

Since these arrangements are only insured on the basis of the outcome of the litigation, if the claim fails, the funder will take risks. However, if the lawsuit does lead to an economic recovery, funders can also share in the financial benefits. One of the leading litigation funds, LexShares, has invested in 103 cases since 2014. 43 of them have been solved for a 70% win rate and a median annualized return of 52% net of fees and expenses (CNBC), beating many hedge funds and well ahead of the S&P 500's 8.7% annualized return over the same period rate of return.

Avalanche Protocol and Republic Advisory Services are working on a regulatory process to enable litigation tokens minted on the Avalanche blockchain Conduct primary issuance and secondary transactions.