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Analysis of LEO burns shows Bitfinex made nearly $300 million from trading fees in 2018

Larry Cermak
LEO is an exchange token, similar to BNB, launched last month by Bitfinex. Bitfinex has allegedly raised nearly $1 billion in USDT and USD in a private token sale in order to cover $850 million currently frozen in several accounts controlled by the payment processing company Crypto Capital.The post Analysis of LEO burns shows Bitfinex made nearly $300 million from trading fees in 2018 appeared first on The Block.

LEO is an exchange token, similar to BNB, launched last month by Bitfinex. Bitfinex has allegedly raised nearly $1 billion in USDT and USD in a private token sale in order to cover $850 million currently frozen in several accounts controlled by the payment processing company Crypto Capital.

One of the most important value capture propositions for LEO is a quasi-claim to Bitfinex’s cash flow via the burning mechanism. Bitfinex burns 27% of the consolidated revenues to purchase LEO tokens at market value until all LEOs are removed from circulation. 

In addition to using its monthly revenue, Bitfinex has also stated its intentions to burn tokens using funds it might recover from Crypto Capital and the 2016 Bitfinex hack.

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