Everyone should have noticed by now: Bitfinex is launching its own token under the ticker symbol “Leo”. After the Bitfinex hack, there are already debt tokens (which can also be exchanged for iFinex shares), and they have also been repurchased in full. This time the tokens will be an exchange utility token and an là model BNB.
First of all, from my perspective, it makes sense to understand the path Bitfinex took to make this decision. The incident is a bit complicated and I don’t want to reproduce it here. Instead, the following are court documents (unfortunately, in English), it’s best to find out for yourself. Many reports can be found online, but none of them provide as good information as the original files, even if you have limited knowledge of English and can only browse the files (especially the existing chat between Bitfinex and Crypto-Capital is interesting).
Explain the terms in advance: OAG = Office of the Attorney General
- The first file to start the program: https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=vIexA1b0spKOnK_PLUS_ZUGTJ3A==&system=prod
- The answer from Bitfinex’s attorney, including the resolution of OAG’s false statement from the perspective of Bitfinex: https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=lyTOWUVaDHJdfUfkNZePWg==&system=prod
- OAG’s response to Bitfinex’s response: https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=8W00ssb7x5ZOaj8HKFdbfQ==
As can be seen from the documents, Bitfinex can no longer obtain approximately US$850 million in funds from Crypto-Capital Bank. Therefore, in order to ensure sufficient liquidity, Tether’s reserves paid to Bitfinex (this is a very short and actually insufficient summary of what happened, please read the file above). The litigation proceeded immediately.
In my opinion, the business models of Bitfinex and Tether must be severely restricted. In my opinion, this may cause the market to collapse. Since the third document describes that OAG only has problems with Tether’s provision of liquidity and the communication between Bitfinex and Tether, this situation seems to have been avoided. Both can conduct business as usual, but should no longer make payments to Bitfinex from the Tether reserve.Therefore, Bitfinex decided to use liquidity Leo token sale One billion U.S. dollars was raised. Bigbit has calculated the difference between BNB and Leo:
I find it particularly interesting and pleasant that, just like debt tokens, the entire supply will be burned to Leo. This will be done monthly at 27% of total revenue. If Bitfinex retrieves the “lost” money, it plans to repurchase a large portion of Leo.As always, more information can be found at Official white paper.
Leo tokens are only offered in private sales (public sales are only planned if there is no investment of 1 billion US dollars), and it seems that Bitfinex will Achieved the financing goal in just 10 days.
Since Bitfinex’s trading volume seems to remain stable and may remain in this state in the future (I also assume that court litigation will no longer have a significant impact), in my opinion this is an extremely attractive investment opportunity. According to my current understanding, Bitfinex repurchases tokens at market prices-so token prices should continue to rise over time. I suspect that Leo tokens will be traded on Bitfinex in the near future, and believe that there will still be a time window shortly after the trade starts.
Please note that I am not a lawyer, so my assessment of the program, Bitfinex and Tether may be wrong.
Disclaimer-Note on conflicts of interest: the author or part of the creative team invests in the above cryptocurrencies or companies themselves or will invest in them (this will appear under each article by default because it may appear in the investment project at some point In time).