Sale of $1 Billion Bitfinex Tokens Announced via Curious Document
- Dovey Wan, founding partner of Primitive Ventures, reported that Bitfinex are planning to sell $1 billion worth of LEO tokens via an IEO.
- LEO tokens are intended to be a temporary measure and to be bought back by the company.
Billion dollar token sales are not unseen in the cryptocurrency world. Still, it is impossible for a billion dollar fundraiser not to attract the public’s attention. This is the case with the recently announced sale of $1 Billion USD worth of tokens.
A report from last Saturday revealed that iFinex, the parent company of one of the biggest crypto exchanges on a global scale – Bitfinex, is planning to sell $1 billion worth of company-branded tokens. While the token itself might not interest every crypto investor, leading analysts alert that its launch could bring real damage to Bitcoin.
The information was revealed by Dovey Wan, founding partner of Primitive Ventures. He reported that Bitfinex are planning to sell $1 billion worth of LEO tokens via an on-platform coin offering (IEO). In the beginning, this information was suspected to be false, considering the legal and financial instability of the Hong Kong-based exchange. However, a document published by Zhao Dong, a Chinese cryptocurrency investor, showed that this move is more than possible.
What is curious is that the document that was released on Twitter is explicitly stating that it is “not a whitepaper” but rather a “marketing document”. A new iFinex-owned company, called Unus Sed Leo, will issue the tokens and each will sell for one USDT.
LEO tokens are intended to be a temporary measure and to be bought back from the company, in a manner similar to Bitfinex’s issuing of BFX tokens in 2016 that were eventually bought back before the end of April 2017.
This infamous “marketing document” hinted that the above-mentioned LEO token would be similar in use to Binance Coin (BNB) and Huobi Token (HT). The document also announced that Bitfinex plans to buy back LEO, if the exchange receives the $850 million it is owed back from Crypto capital and manages to redeem the thousands of Bitcoin lost in its latest hack.
As the document states, all recovered funds would be used to re-purchase LEO tokens. In addition, Bitfinex would invest up to 27% of its monthly profits in buying LEO tokens. This process will continue up until less than 100 million LEO tokens are left in circulation.
As a further bonus for LEO holders, possession of the token will give users discounts on their trading fees when exchanging between cryptocurrencies on Bitfinex, EthFinex and EOSFinex.
- The exchange is also waiving any fee on the conversion of USDT to USDC in order to stimulate the swap and make it frictionless.
- The move came only three months after rival exchange Binance started to auto-convert USDC to its own BUSD stablecoin.
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- Etherscan data shows that crypto assets have once again started to leave one of FTX’s hot wallets, suggesting that the exchange has reopened withdrawals.
- Earlier today FTX CEO Sam Bankman-Fried took to Twitter to apologize for the recent events, and announce that Alameda will be winding down.
- The stablecoin issuer was order to produce a number of financial documents, as well as records of crypto trades, transfers, and its accounts with crypto exchanges.
- The order was made as part of a case that was started in 2019 by a group of investors, who alleged the company had manipulated the crypto market in 2017.