Cannabis producer Apothio raised $ 330,000 in a lawsuit against Kern County, California through a so-called preliminary action on the Republic investment platform.

Investments are accepted in US dollars, but investment certificates are issued as digital tokens on the Avalanche blockchain network (AVAX). This is the first ILO (International Labor Organization) Jumhouria offering launched in 2016 for equity financing.

The cannabis grower is seeking compensation from the county for damage done when the California Department of Fish and Wildlife Deputy allegedly managed 450 acres of $ 1 billion worth of crops.

Apotio’s lawyer, Kyle Roche, told Cointelegraph that government funding of legal issues through cryptocurrency investments has many benefits:

“The judicial systems work very well, they are simply too expensive. If you can remove the cost-based barriers to allowing capital to flow into the system when needed, I think the ILO can be a positive force for access to justice. ”
A litigation investment is when outside investors who are not affiliated with a case can provide funds for litigation in a litigation and receive a return on their investment based on the outcome of the case. In accordance with the International Labor Organization, the fund’s contributors receive digital tokens, which entitle them to receive a portion of any damage reimbursed as a result of the decision on the case.

According to Research Nester’s December 7, 2021 report, the global investment litigation finance market was valued at $ 11.4 billion in 2019 and is expected to more than double to $ 24 billion by 2028.

Roche noted that while the market is growing, it is mainly targeted at private businesses. He hopes that as more ILO cases are used, a significant barrier to legal investment will be reduced through cryptography:

“The use of cryptocurrencies is not a problem, but we need to make sure the regulatory instruments work in line with what the ILO does.”
The cannabis producer’s case has exceeded the minimum target of $ 250,000 to continue the trial. ILO tokens will be frozen in investor portfolios for a period of 90 days, after which they can be transferred.

Once a decision is made on the case, token holders will be given any refund they may have given and the tokens will be frozen again. As the case develops after the token is opened, a speculative market for the token may open up as investors may want to sell or buy a large stake as a result of the case.

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In 2021, law firm Roche began making plans to launch its own ILO token market called Ryval, which is currently being developed at Avalanche. Roche hopes that through Ryval, the ILO concept will become popular in the United States and around the world.

The ILO concept also offers cryptocurrencies another way to use real-world applications through coding. Experimental funding will join contemporary art through non-figurative coding (NFT), social media interactions, real estate investments, and even the oil and gas industry as sectors where coding will become a reality.

Source: CoinTelegraph