It has been less than two months since the New York Attorney General’s Office slapped Bitfinex in the face with an accusation of “fraud,” over their $850 million undisclosed loss cover-up. Now, their “LEO” token curated to remedy the ordeal is officially up on the 13th spot on the biggest crypto-market aggregator, CoinMarketCap [CMC].
With a valuation of over $1.8 billion, LEO officially referred to as “UNUS SED LEO,” was placed higher than the likes of Monero [XMR], Dash [DASH], IOTA [MIOTA], and Ethereum Classic [ETC]. While the entire crypto-space was still mulling the prospects of Facebook’s Project Libra, LEO came out of nowhere and climbed the coin ladder.
Paolo Ardoino, CTO at Bitfinex, hailed the quick-climb of LEO as “not a bad start.” He tweeted,
Shades of the Bitcoin SV [BSV] price climb were revisited when the cryptocurrency shot up to the 8th spot on the ladder, less than a month after forking from Bitcoin Cash [BCH] in December 2018.
Bitfinex released the LEO whitepaper on May 8 and stated that the price of LEO tokens would be 1 USDT, but later clarified that “other forms of consideration” and “USDt equivalents” would also be accepted. In the whitepaper, the utility of LEO was spelled out as,
“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.”
The exchange stated that the main objective of the proceeds generated via the LEO token sale will be towards replenishing the working capital of the exchange and to pay for any general business expenses. The whitepaper highlighted that LEO tokens can be used to redeem fee reduction on either Bitfinex or EthFinex.
Further, with the larger community viewing the LEO issuance as a ‘scapegoat tactic’ to remain in the vicious Bitfinex-iFinex-Tether circle, the exchange clarified its stance on the repurchasing and burning of tokens. Bitfinex will buy back the tokens on a monthly basis for a price, “equal to a minimum of 27% of the consolidated gross revenues of iFinex,” based on previous month’s calculations. This will carry on until no tokens are in public circulation.
At press time, the circulating supply was exactly LEO 1 billion, while the token was priced at $1.82. It was experiencing a 5.1 percent decline against the US Dollar over 24 hours.
No sooner did LEO push high on the CMC ladder did Bitfinex announce the first set of redemption for their infamous tokens. On June 19, hours after Ardoino’s tweet, the exchange stated that 501,107.1 LEO tokens or 0.0511 of the 1 billion tokens in supply had been burned and “completed on EOS.”
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