The parent company behind the cryptocurrency exchange Bitfinex and the stablecoin Tether, iFinex, is reportedly investigating a token sale. That is at least if a document recently shared on Twitter is to be believed.
Bitfinex’s planned LEO token is seemingly going to be a utility token
Specifically, the known shareholder and over-the-counter trader Zhao Dong tweeted an iFinex marketing document supposedly detailing how a Bitfinex token sale might look. Moreover, Bitfinex’s initial exchange offering (IEO) will reportedly see the exchange engage in raising up to $1 billion.
The document reveals that as much as one billion USDT worth of the exchange’s tokens, called LEO, will be available for purchase. Furthermore, the document – which clearly states that it is “not a white paper” – also details the nature of the LEO token.
As such, it mentions that the LEO token will be a utility token tying together Bitfinex’s ecosystem. What’s more, the document also goes on to suggest that holders of the token will benefit from crypto to crypto trading fees on Bitfinex and the company’s decentralized exchange EOSfinex.
In addition to this, there is a veritable plethora of other advantages that are going to be offered by the token. For example, the token will offer decreased lending fee reduction, deposit and withdrawal fee discounts, as well as decreased derivatives fees.
The tokens will reportedly be bought back on a monthly basis
Nevertheless, the document also states that citizens of, for example, Canada and the United States will not be able to partake in the LEO token sale. In total, one billion tokens will be issued by Unus Sed Leo Limited, which is another company owned by iFinex.
“The tokens will be sold in a private offering without the means of general solicitation or general advertising. Any tokens that remain issued may be sold in the manner and times determined by the Issuer in its sole discretion.”
However, this token sale is reportedly not purely motivated by a need to fund the development and deployment of the LEO tokens.
Rather, the cryptocurrency news outlet The Block reports that the firm intends to use the funds to cover its $850 million currently frozen by the payment processing company Crypto Capital, in a rather bizarre story has previously been covered by Toshi Times.
This would not be too different from the BFX tokens issued by Bitfinex following a hack in August of 2017. Moreover, the document also indicates that iFinex and its affiliates intend to buy back the LEO tokens on a monthly basis.
Image Source: CoinDesk
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.