 Live from Nassau in the Bahamas, it's theCUBE, covering Polygon 18, brought to you by Polymath. Okay, welcome back everyone. We're live here in the Bahamas. This is theCUBE's exclusive coverage of the token economics world, cryptocurrency, blockchain, the new innovation that's changing the world. And of course, we're on the ground floor. Day two of coverage. Our next guest is Amir Kaltec, CEO and founder of El Exit. El Exit, called legalized exit, legit exit. He's automating the M&A process in a decentralized way. This is exactly the kind of value we see with cloud computing. And we see automation and efficiencies. That's disruptive. Amir, congratulations on your awesome venture. Love your model. Let's get into details because I think you're demonstrating, in my opinion, where value's being created and then ultimately captured faster, more efficiently because you're automating the M&A process for people to get exit in a highly volatile value creation, value capture world. Take a minute to explain your company. All right, this is fantastic. Thank you for this kind intro. Hello world. Lex said in a nutshell, it's M&A on blockchain. And I hope you guys will love it. What we do is we give you access to the world of M&A, which is currently a big boys club, right? And we want you guys to be all participating in it from the small entrepreneur who just started out, who crashed his daughter, but created a great tech. He can sell it on it. The whole world's going to see it. Or to the seasoned entrepreneur, to the big entity, to the big enterprise, you can sell it on there too. You will see by all acquirers in the world. And at a penny off the costs, at loads of speed, you will be able to liquidize and asset your business. So Dave and I predict that there's going to be a lot of liquidity going on at many levels. I'll see token economics drives that. But in the startup world, you either make it or you sell it or you put it out of business. So in this world, as people start developing technology, the difference between a company and a feature might not be the same. So I might build the best app for social entrepreneurship, for solving world hunger or tracking the water supply through blockchain. And someone says, damn, I love that. I'm going to buy that. Now I got to go to a banker. I got to get legal fees. My choices are, you know, limited, hassle, cost cash. I mean, as a guy who just crashed his startup, let's take this example, right? Because the majority does fail, right? Over 90%, as a matter of fact, 96%. Now, you just fail, but you have this great technology you created, right? What are you going to do? You check your address code. Who might, you know, buy it. But it's limited too because you just started out. You don't know nobody. So what you do is you go to a consultancy, M&A consultancy, to lawyers who are connected to the sphere. The gatekeepers. Yes, the gatekeepers, the big boys, you know. And they take a big cut of it. They'll tell you, it's an amazing technology. We'll help you sell it. But you make a down payment of $10,000 right now, and we look into it. But you don't have to put $10,000 right now, for instance, right? So what are you going to do? And even if you pay them, the legibility of getting back to you is not that high. So what do you do is on the exit is, you get to the exit, you open up your account, you get KYC, we're very strict on that. It's a fully legit platform. And you list it. You get assessed by your professional M&A network, given a value to it. It's not the value you will be sold for, but it's a value that professional assessor thinks you're worth. And why? He's going to state its reasons. Now the buyers are going to see it, make the bids. And there you are, access. And so you guys automate that entire end to end process? Absolutely. So Lexit is from the listing down to the final due diligence and drafting of agreements. Everything is in it. The final signature and the transfer of ownership. It's a full solution. Yeah. The future of work obviously is about automation. I mentioned cloud computing, because we look at that market heavily and the tech side automation drives it. But managing processes, automating processes of the way is threatening to a lot of people. You're basically putting people out of business potentially. Or if you're successful, a cadre of ecosystem partner service providers traditionally go out of business. So I like that. Potentially. Well, they're going to have to adapt or change. I mean, I see this in global service integrators like Accenture. These guys are getting eaten up by machine learning automated coding because they can do it faster and better. Well, you know my business better than I do. What do we do with theCUBE? We know our stuff. So, but this is disruptive. And at the end of the day, the other thing I want to get your reaction to is open source. A lot of people in the ethos of the mission based open source world is, I wrote code using open source. If my company fails and my VCs make it proprietary, it's like an owned asset in bankruptcy or whatever. Dying, they can't put it back. But with open source code, there's always going to be value there to some level. I mean, might not be great. So I might say, hey, you had a fails venture. I'll buy your code. Transfer your GitHub over. Done. That's how we work. So this is kind of like the dynamic that you see. This is the direction we're heading to. We want to connect the dots because we started less it out of a community approach. We figured out two years ago when we started it. So we're two years in the dev right now that this is dialing needed. We don't have access, but if I got this problem right now as a startup or so do many, and out of this thinking, we claim ourselves to be the startups for starters, right? And empower the community. I believe that in terms of leadership, for instance, you're only a good leader. If you empower everyone around you to become a good leader, all right? Based on respect and mutual purpose. So I got to ask you questions. Everyone's going to ask this question when I all startups because you got to know where you are. Are you a startup? Are you a growing company? Where's the product? How far along are you? When is it going to be released? Talk about the momentum of the offering that you have. Is it available in beta? What's the status of the product itself? Because I'm sure it'll be used a lot. Oh yeah. Oh, as I said, we started two years ago. The first year we didn't even, I mean write a single line of code. It was just like, how do you put this huge M&A process into usable yet powerful but simple to use platform? How do you do that? Which is scalable from a small, small asset you want to sell, a line of code, an algorithm, up to a large enterprise. So it was the first year was finding out a process. What is necessary? How do we cover all aspects on different jurisdictions and all this stuff, right? How to make it work on legal side too. And we figured it out and then we started doing it. And right now, I can tell you guys, we are scheduling the launch of LaxZit this year in June. So we're not just- So the product will be ready for production, shipping product? Absolutely. Like, available worldwide, completely worldwide, ready to operate, ready to make your deals, to put your listings, to make your bids, to get the best technology out there, but not just technology. Lesson is M&A. It means any kind of business. From a pizza chain, to a high tech company, to, I don't know, food, supply, you can sell. So usually when I do legal documents, you see exhibits in there and say, oh, exhibit A is all the IP, or whatever the buyer's selling, and the seller's selling the buyer's buying. When you deal with decentralized asset creation and capture, you use that blockchain involved, how much is the tech involved in your process? Obviously the legal stuff I can really see automating away. That's like, check one. But when you start dealing with assets that are either code or something durable, like property, that's maybe stored in blockchain. How do you guys look at that? Is that part of the automation? Is that a factor? Where does that impact? Is that an exhibit? Do I just say, here's my key? How do you deal with that? All right, let's put it this way. We do want to connect existing M&A space to Lexington. They exist, they're huge structures. We do want to disrupt them, that's true. But to do that, you can't just create entirely everything new. So you have to kind of find a way for the big boys' old club, the big banks, and all those folks around there to participate, to give them a familiar way to work. So what we did is the token model economics and their way are that people get rewarded, people pay for stuff inside of it, and such. Everything is triggered with smart contracts, obviously, to know, did you do the down payment? Is the signature happening? So the smart contracts are automating the whole thing down to the final transaction. When the final transaction happens, we get our commission paid out from the Astro. We have, you know, the Lexington crypto Astro. So everything is transparent and secure. Everybody involved into a deal knows exactly what's happening, right? And they have a shared incentive too. They're tokenizing the process so there's a reward element, right? Is that, am I getting this right? Yes, the three parties in Lexington, buy a seller, obviously, and the assessors, professional M&A guys. So they get rewarded in tokens, and that greatly, pretty much like in the magnitude of what they do in billables at the big four PWC and so on and so forth. So it's a high incentive there to do this in this assessment, right? And they get rewarded from the community poll, which gets feed with all those listing fees, unlocking features, and everything what's happening within Lexington itself. Now, the kicker is that we at Lexington believe that much in our own token, right? That the commission you have to pay us is between eight and 2%, 2% about $35 million in volume, and it gets a bit higher down to the lower volumes. We take this commission only in our own token. I don't want dollars, not even Bitcoin. So you have your own token? Yes. Utility token or security token? It's a utility token, strictly, and it's called LXT. LXT, great, and is it available now or are you going to launch it in June? Right now we are in the private presale, halfway through, and it looks like we will keep it in a presale. It looks like the pace we're selling out LXT right now to the private backers is that high that we are thinking two weeks from now on. So speaking mid-March, it's sold out. What's the numbers? Hard cap, soft cap, you have numbers? See, I told my team, listen, everybody tells me you do an M&A on blockchain, hey, you can raise hundreds of millions and everybody would say, that's okay. I said, we don't need that money, right? I just want to raise what we do need to just finalize the last mile of the death and launch it this year. So the hard cap is 10,000 ETH, 10K ETH only, roughly $9 million right now, and that's it. Yeah, all right. And you're going to reserve the other tokens for the community to do the work and be part of this new future of work equation? 50% of the total supply, which is 18 million, eight zero, goes to the sale, to the market. It's just 10% to us founders. We don't need more. She's not greedy. You guys are playing it right. Straight up. I want the community to be empowered. This whole thing here. Yeah, you need the community. You need the community. I need the community. So that is a different dynamic, well not different, that is the dynamic that everyone is gringing on the community in the ecosystem here is that if you have bow guarding or hoarding coins or people taking down allocations, you miss the dynamic of the human capital which is what the future of work is doing. You are an example. Free promotion, you know what I mean? It's like, well, you're engaging. The future of work requires human capital. So if one institutional buyer buys the token out, there's no people. I interrupted you. You said we are an example for what? I got curious. The future of work, you are executing potentially disruptive M&A, but you're not going out to the banks directly they can play to, so you guys just service. I mean, it's like you're like an Amazon.com website or a cloud service for M&A, well not like, but I mean automated. Automating away things is a way to go. Do you see other examples that are like you guys that are emerging in use cases? I mean, obviously you're taking a known process, M&A, automating it away, making it tokenized. What other things do you see out there that's ripe for disruption? I do think that if somebody out there, no, let's say what we do, right, let's put this aside for a moment. I think supply, the supply chains of the world, right, are ripe for disruption. I think that inefficient, I think even food production, right, down to the basic needs of a human being, this is ripe for disruption. I mean, when I got my MBA and back in the eight, 90s, I forgot my computer science three in the 80s and I remember the word that always sticks in my head from the books that they teach you is the value chain. Value chain. The value chain is a concept of anything, right, of value creation. This notion of chaining, lock chain, you see it, anything that has value creation process. Let's take food production for a moment, right? All right, rice, okay? Rice. So now there is this farmer, Somanasia, or elsewhere, and he's producing, he's selling it to somebody who's picking it up. He sells it to the next distributor. He sells it to the international distributor. So he sold it for probably, I don't know, maybe 20 cents a pound, tops. Probably just five, I don't know the prices. So what happens if we could change the supply chain, that we have a decentralized nature of how all these people can directly fit into the system and just jump those middlemen entirely? So this is what I'm speaking about, you know, it's going to disrupt everything. Somebody's going to figure out that one. So you guys have a good formula just to recap. You're automating the M&A process. You're creating a huge supply of tokens available to the community that will help you change the game on M&A, which is also part of the process, your value chain now tokenized. And you're taking a small cut that's a tiered commission, if you will, on the M&A transaction, you know, higher than the lower numbers. And as you go higher, what you want more deals, you take a smaller cut. So it's not greedy, you're not taking a grotesque. We go even beyond. Around Lexet we created a partner program, right? This partner program is fueling directly deals onto Lexet and we give them 50% of our commission. People tell me you're crazy. No, I'm not. You need to incentivize. So if you get thousands of departments one day, you know, think of that. So 50% is still a lot. And I believe in sharing. All right, this is everything except my girlfriend. Everything is fun. So we share. You're going to have my beer, that's fine. So speaking of that, you know, I believe in this. Well, the network effect too. Sharing is an ethos of distribution, right? So distribution is sharing. Sharing is also a social thing, but social gamification really is about distribution. You're essentially creating a network effect. And this is the fundamental pattern, right? I mean, in token economics is the networks. Totally true. Right, you see that? The sound happens, yes. All right, what's your situation now? You got a deal going on? Key with Pauling math? That's amazing. Tell me about that. You're announcing it on stage in about an hour. It's true, yeah. The stage is about to come up. Yeah, Trevor and his team do a great job. You know, boarding startups with the tokens become a security token. I believe there is a huge business for them in the future. And now we want to work with them together, so we partner up. And what we do is, one of the models is that we will help them, their clients to liquidize these tokens then, or relax it. So this is one of the thoughts we have. We're just figuring out a few things, but we're very excited. And it's all API based, I'm assuming, right? All API based. It's highly automated. Of course, automation. Yeah. It's all about automation. You know, you have to lower the cost to make it efficient, to make it cheap for everybody involved. So you have to automate everything you can. And smart contracts are, per se, an automation tool. Well, Amir, good luck with your venture. Legs it. I love the idea. I love what you're doing. I think this is what we look for in theCUBE, this kind of innovation. We think it's awesome. Good luck on your team. The product's almost pretty long. And the pre-sale is almost through. So if you guys want to end, 40 ETH is the men. Let me just drop that one in two weeks. It's closing. And we just throw in between four to six weeks. We're going to just throw the token. So it's everything happening right now. And soon after that, the exchanges are waiting. And you'll be surprised. They're going to be the good ones. All right. This is innovation, theCUBE covering the blockchain, the cryptocurrency, we're at Polycon 18. Polymath is the folks putting on the event with grit capital, a Canadian contingency, but they know their cryptography. If you know Canada, you know the deal is there. It's theCUBE covering it live. We'll be back with more live coverage after this short break. Thank you. I'm John Furrier, the co-founder of SiliconANGLE Media and co-host of theCUBE. I've been in the tech business since I was 19, first programming on many computers in a large enterprise, and then worked at IBM and Eulah Packard, total of nine years in the enterprise. Various jobs from programming, training, consulting, and ultimately as an executive salesperson. And then started my first company in 1997 and moved to Silicon Valley in 1999. I've been here ever since. I've always loved technology, and I love covering emerging technology. I was trained as a software developer and love business, and I love the impact of software, technology to business. To me, creating technology that starts the company, it creates value in jobs, is probably one of the most rewarding things I've ever been involved in. And I bring that energy to theCUBE because theCUBE is where all the ideas are and where the experts are, where the people are. And I think what's most exciting about theCUBE is that we get to talk to people who are making things happen. Entrepreneurs, CEO of companies, venture capitalists, people who are really on a day in and day out basis, building great companies. And the technology business is just not a lot of real-time live TV coverage, and theCUBE is a non-linear TV operation. We do everything that the TV guys on cable don't do. We do longer interviews. We ask tougher questions. We ask sometimes some light questions. We talk about the person and what they feel about. It's not prompted and scripted. It's a conversation. It's authentic. And for shows that have theCUBE cover it, it makes the show buzz. It creates excitement. More importantly, it creates great content, great digital assets that can be shared instantaneously to the world. And I'm so proud to be part of theCUBE with great team. Hi, I'm John Furrier. And Herschewek.