Cryptocurrency exchange Bitfinex is looking to move on from the recent controversy surrounding Crypto Capital and the New York Attorney General’s office with the announcement that its new utility token – LEO – will go live for trading today after raising $1 billion in capital last week.
Described by Bitfinex as “a utility token designed to empower the Bitfinex community”, the firm is looking to “provide utility for those seeking to maximize the output and capabilities of the Bitfinex trading platform”. The exchange has said LEO will be “at the heart of the iFinex ecosystem”.
— Bitfinex (@bitfinex) May 20, 2019
What are the funds for?
According to the LEO white paper, “proceeds may be used for working capital and general business purposes, including capital expenditures, operating expenses, repayment of indebtedness, and other recapitalization activities.”
Like one of Bitfinex’s main competitors Binance and its native utility token BNB, on a monthly basis, “iFinex and its affiliates will buy back an amount of LEO from the market equal to a minimum of 27% of the consolidated gross revenues of iFinex.”
— Paolo Ardoino (@paoloardoino) May 20, 2019
Commenting on the launch, Bitfinex CTO Paolo Ardoino asked people to “Stay tuned!” as “this is just the beginning, we have outstanding ideas for our token, in addition to the ones proposed in the white paper and roadmap.”
Last week, the CTO claimed on Twitter that the reason the exchange was able to raise $1 billion in 10 days was due to the trustworthiness of the brand.
Overcoming recent turmoils
It’s certainly interesting to note the speed at which Bitfinex has managed to turn around its recent turmoils. Since Bitfinex’s troubles came to light a few weeks ago, we have seen the price of BTC move from a 6% premium all the way to a 1% discount on the exchange that has been in the Bitcoin business since 2012.
Backed by solid net profits of $326 million and $404 million in 2017 and 2018 respectively, the firm has managed to easily raise $1 billion in funds and will now be hoping that it isn’t too late to the exchange-based utility token game.
Bitfinex concluded its post by saying that it “remains invigorated and humbled by the support of our users, personnel, and beneficiaries, and welcome everyone to the era of UNUS SED LEO.”
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