It seems that the rumours surrounding iFinex and their cryptocurrency exchange Bitfinex were well founded. Just a couple of days after the first mention of their upcoming LEO token initiative, the official whitepaper has been released. This search for funding is happening despite the fact that Bitfinex if having a bit of trouble with the authorities.
The official whitepaper confirms the information that one LEO token will trade for one USDT but it also mentions that “other forms of consideration” are also in place. iFinex plans to open an explicit LEO:USDT market once the token sale has concluded successfully.
Bitfinex has placed a maximum sell cap of 1 billion USDT in LEO tokens for its private trade. The popular exchange intends to use the funding for their main business expenses, including “capital expenditures, operating expenses, repayment of indebtedness and other recapitalisation activities”.
Bitfinex has some big plans about the LEO token, as stated in the whitepaper:
LEO will be the utility token at the heart of the iFinex ecosystem. Token holders will experience benefits across the entire portfolio and are expected to obtain benefits from future projects, products, and services, whether or not detailed within this white paper.
LEO tokens will be used for obtaining discounts on trading fees when exchanging between cryptocurrencies on Bitfinex, EthFinex and EOSFinex. Another exemplary benefit is that every owner of upwards of 50 million LEO tokens will be able to withdraw up to $2 million without any fees.
After the initial announcement, a couple of users were curious about details about the repurchasing and burning of LEO tokens. Bitfinex did confirm the initial information that they will invest a minimum of 27% of their monthly revenue into buying back tokens. This procedure will continue until no LEO tokens are left in circulation.
Bitfinex announced that the private token sale would continue until 11th of May. If the objective of selling 1 billion USDT tokens is not reached at that time, the remaining tokens will be publically sold at an appropriate time in the future.