UNUS SED LEO is a new token designed to improve the capabilities of all iFinex platform and service users (including the Bitfinex exchange). The token is intended to address the situation that developed following the New York prosecutor’s office accusing the exchange of illegally exploiting Tether cryptocurrency funds.
Unus Sed Leo, a coin developed by Bitfinex, has been issued (LEO). In less than a month, the cryptocurrency grew by 80% and entered the top 20 on CoinMarketCap. Here’s everything you need to know about it.
UNUS SED LEO is a token issued by iFinex, the parent company of Bifinex, a cryptocurrency exchange. The coin became live in May 2019 after the firm received $1 billion in an initial public offering. On the iFinex platforms, token holders get trade discounts.
The corporation will purchase back and destroy tokens until they are no longer available on the market.
Bitfinex was founded in 2012 and is one of the earliest cryptocurrency exchanges in the world. While it is still one of the top cryptocurrency exchanges in the world, its journey hasn’t always been easy. In truth, 2018 was a very trying year, and not just because of the bursting of the crypto boom and the onset of the crypto winter.
The biggest issue Bitfinex had was a loss of $850 million when the shadow banking firm Crypto Capital Corp’s money were seized by a number of governments around the world, including Poland, the United Kingdom, Portugal, and the United States.
At the same time, US authorities accused iFinex, the parent firm, of illegally moving assets to Crypto Capital Corp. and of attempting to hide the $850 million loss by using reserves from Tether Ltd., another iFinex company.
The ensuing debate and negative headlines have clearly tarnished iFinex and Bitfinex in the eyes of investors. In response, iFinex announced the production and distribution of the UNUS SED LEO coin, which would offset the $850 Tether fund deficiency. In May of this year, the UNUS SED LEO token debuted.
The total number of UNUS SED LEO tokens created was 1 billion, with 660 million on the Ethereum blockchain and 340 million on the EOS network. All of the tokens were sold for $1 USDT apiece in a May 2019 private sale and a June 2019 IEO, raising $1 billion and offsetting the loss.
This utility token differs from others in that it was designed with the intention of eventually burning all of the tokens. With this in mind, Bitfinex spends 27% of its income on token purchases and burns.
Bitfinex maintains a dashboard that displays information about token purchases, burned tokens, transaction information, and more in order to ensure complete transparency.
LEO is a top 100 cryptocurrency with the following main characteristics and takeaways:
When the New York City Attorney General’s Office accused Bitfinex of concealing losses totaling more than 11 billion ZAR in 2018, it faced a slew of problems. Bitfinex is an iFinex subsidiary, and at the time of the incident, iFinex warned that it might not be able to retrieve the funds.
Bitfinex announced the issuance of a token, UNUS SED LEO Limited, to address the budget shortfall it was facing in order to rehabilitate itself. More than 13 billion ZAR was raised during the Initial Exchange Offering, and each LEO token was tied to 1 USDT for the 1 billion supply available at the time.
A billion LEO tokens were issued and sold for 1 USDT in a closed initial exchange offer (IEO), with 27% of the earnings going toward purchasing tokens at market cost. These coins were supposed to be burned, with the proceeds going into the exchange’s budget.
Bitfinex assures that data on purchased and burned tokens, as well as transaction information, is released to ensure constant openness of its goals.
The replenishing of the Bitfinex budget, the expansion of opportunities for service clients, and the development of the iFinex ecosystem are the three key functions of LEO.
LEO serves as the exchange’s internal coin, offering users a range of benefits like as fee reductions, commission reductions, and other discounts.
The LEO token is a utility token that will be used to support Bitfinex derivatives, the IFinex IEO Platform, Dazaar, Finex, Betfinex, and EOSfinex.
Because of the repurchase and burn process, LEO’s key feature is that it will not last indefinitely.
Another advantage is that LEO is available on two blockchain platforms: Ethereum and EOS. This means that the coin can be sent as an EOS or ERC20 token.
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