LEO Token (LEO) is a utility token for Bitfinex and other iFinex-managed trading platforms. The token should strengthen Bitfinex's community and operations.
Following its launch in May 2019, the UNUS SED LEO (LEO) token on the Bitfinex exchange made news for its rapid ascent to the top of the market capitalization rankings for cryptocurrency tokens. Early in June 2019, it appeared that the LEO token has entered the prestigious top 10 token club, attracting comparisons to similar tokens such as Binance Coin (BNB), the native token of the cryptocurrency exchange Binance.
iFinex, the parent company of the Bitfinex exchange, published a whitepaper concurrently with the commencement of the private token sale in May 2019. According to the paper's findings, iFinex intends to issue no more than 1 billion LEO tokens. Each will be pegged to the stablecoin tether (USDT). Bitfinex began trading in LEO tokens against BTC, USD, USDt, EOS, and ETH on 20 May, following the end of the sale.
LEO token is intended to increase the desirability of the network it operates on for its holders by delivering a variety of promised benefits.
The LEO token will contribute to the decrease of taking and lender fees for iFinex's trading platforms, products, and services. iFinex operates the Bitfinex exchange and EthFinex digital asset trading platform from Hong Kong. All taker fees for LEO holders should be decreased by 15% for all crypto-to-crypto trades, including crypto-to-stablecoin pairs, across all fee tiers. Bitfinex has also just stated that taker costs for LEO holders holding more over 5,000 USDt in LEO would be cut by an extra 10%. This refers to the tokens found in their accounts during the previous calendar month, with the computation encompassing the entire month. This is expected to encompass all crypto-to-crypto pairs, with the extra UNUS SED LEO fee benefits to be implemented in the coming weeks. Lenders are eligible for a fee discount of 0.05 percent for every 10,000 USDt in LEO tokens held in their accounts.
LEO, being the utility token at the center of the Bitfinex ecosystem, is intended to optimize the ecosystem's trading procedures. The LEO token project guarantees that up to 25% of trading fees will be deducted in LEO if the trader possesses these tokens. In addition, traders will be able to purchase any fee level in LEO for a period of 30 days using an amount of LEO equal to 75% of the delta ratio between the average monthly fees generated and the current trader tier in USDt. The discount should be applied to all fees assessed by both Bitfinex and Ethfinex. Similarly, LEO holders are eligible for 25% fee reductions on crypto withdrawals and deposits. In other words, Bitfinex will allow users possessing more over 50 million LEO to withdraw $2 million without paying additional fees.
The proceeds from the maiden exchange sale for LEO tokens should assist the organizers in enhancing their commercial possibilities. According to iFinex, the funds generated by the transaction are ideal for general business reasons, increasing the company's working capital, covering expenditures, operational expenses, as well as debt repayment and recapitalization.
LEO token employs token burns as a means of devaluation. Compared to a similar Binance Coin, LEO token burns are expected to be faster and have the following characteristics:
According to the information provided in the LEO whitepaper, token burning are expected to occur periodically. iFinex is required to buy back and burn a minimum of 27 percent of its preceding month's consolidated gross revenues. As long as the tokens remain in commercial circulation, the procedure must be repeated. According to unconsolidated reports, iFinex's profits in 2018 were USD 404 million.
iFinex also intends to repurchase and burn the existing LEO tokens using monies acquired from Crypto Capital, a Panama-based payment processor frequently mentioned in connection with an alleged affair involving Bitfinex (including an alleged loss of about USD 850 million). As long as the team believes it essential to finish this procedure, the repurchases will occur through multiple transactions.
A same strategy will be implemented with the monies recovered from the 2016 Bitfinex hack. The sum planned for use in this manner should equal 80 percent of the hacked funds redeemed, with an 18-month term for this activity serving as a hedge against market fluctuations.
Bitfinex was founded in 2012 as a Bitcoin-centric peer-to-peer exchange, making it one of the more established exchanges in the blockchain business. In May of 2019, its core team, which also supervised the LEO token project, consisted of more than a hundred experts. In accordance with the company's declared preference for quality above quantity, there are no more than 25 people working exclusively on the development.
Bitfinex stated in August 2016 that it had been the target of a security compromise. More than USD 72 million in BTC was allegedly stolen from the company's customers' accounts. Together with Tether, the exchange was criticized in 2019 for failing to reveal the loss of approximately USD 850 million related to Crypto Capital's deposits. Additionally, it is alleged that Bitfinex engaged in an undeclared, conflicted transaction with certain consumers. As of June 2019, the legal struggle with the state of New York is ongoing.
Bitfinex and its sister business Ethfinex announced the debut of their initial exchange offering (IEO) platform, Tokinex, in May 2019. With initial exchange offerings (IEOs), as opposed to initial coin offerings (ICOs), exchanges function as a guarantee and undertake a due diligence check on the team of professionals engaged.
An investor in cryptocurrencies believes that $1.5 million of his stolen money somehow wound up in an account with a cryptocurrency exchange situated in Manhattan, and he wants to know how.