Linen on Republic | Should You Invest?

Linen on Republic | Should You Invest?

Company Overview

Linen is a mobile app and a crypto assets wallet which enables users to acquire and hold the emerging class of crypto assets (governance tokens, rewards tokens, social tokens, etc). The app also allows access to certain blockchainbased protocols, including liquidity pools and staking in decentralized finance (DeFi).

The app is the Company’s main product and is currently in private beta testing. Not all features of Linen App are currently available. Exchange pools, lending liquidity pools, and staking are developed by third-parties. These liquidity pools are powered by public blockchains such as Ethereum that allow for value transfer and can be programmed using smart contracts.

Invest in Linen
Republic is a startup investing platform where you can invest as little as $10 in impactful startups

Linen Business Structure

  • Form: Corporation
  • Jurisdiction of Incorporation/Organization: Delaware
  • Date of organization: June 11, 2018

The Deal Terms

  • Security: Crowd SAFE
  • Valuation Cap: $22,000,000
  • Discount Rate: 0%
  • Min. Offering Amount: $25,000
  • Max. Offering Amount: $4,900,000
  • Min. Investment: $200
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Competition

Linen's main competitors are cryptocurrency wallets that integrate Ethereum-based lending liquidity pools in their wallets and aggregators of DeFi protocols. Projects like Argent, Dharma, Outlet Finance, Zerion, BlockFi, ZenGo, Coinbase, Celsius, Nexo and others provide the ability to earn interest on stablecoins and cryptocurrencies. Linen is focusing on less tech-savvy users and on long-tale of crypto assets, but we can't know if this will be the right move.

How will Linen Use The Funds Raised On Republic?

Linen's Use Of Republic Campaign's Proceeds
Source

The Team

Vitaly Bahachuk: Vitaly is in charge of developing the Company’s product vision conducting the marketing efforts and executing the Company’s business plan. Prior to his responsibilities at the Company, Vitaly was President of OCF, Inc from February 2019 to December 2019, where he was responsible for the company’s strategy. Prior to the foregoing, Vitaly was President of Almus Media, Inc, from November 2015 to July 2018, where his responsibilities included business development.

Aliaksandr Bazhanau: Aliaksandr is responsible for the design and technical architecture of the Company’s products. Backend systems and smart contract development also fall within his purview. Prior to his responsibilities at the Company, Aliaksandr was Treasurer and Secretary of OCF, Inc, where he was engaged in technology consulting from February 2019 to December 2019. Prior to the foregoing, he worked as a software engineer at Adform, from April 2015 to March 2018. Aliaksandr completed a Blockchain research internship at IBM Research from August 2017 to November 2017.

Debt

Linen's Balance Sheet
Source

On December 30, 2020, the Company and Vitaly Bahachuk entered into a loan agreement (the “Loan Agreement”), in the amount of $30,000.00 (the “Loan Amount”), with an interest rate of 5 percent (5%), compounding annually. Prior to the maturity date, the Company can repay the Loan Amount, together with all accrued but unpaid interest thereon, at any time without penalty. On January 24, 2021, the aforementioned parties amended the Loan Agreement to extend the maturity to September 30, 2021. Except as to the modification regarding the maturity date of the Loan Agreement, the latter remains in full force and effect.

On February 1, 2021, the Company and Aliaksandr Bazhanau entered into a loan agreement (the “Loan Agreement II”), in the amount of $25,000.00 (the “Loan Amount II”), with an interest rate of 5 percent (5%), compounding annually. The maturity date of the Loan Agreement II is September 30, 2021, upon which date the Loan Amount II including all accrued and unpaid interest are due and payable. Prior to the maturity date, the Company can repay the Loan Amount II, together with all accrued but unpaid interest thereon, at any time without penalty.

The Financials

Linen's Financials
Source
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