Amidst much contemplation, cryptocurrency exchange Bitfinex will list its new exchange token, LEO, on Monday after reportedly raising $1 billion from the initial offering.
Announcing the development on Friday, Bitfinex added that upon listing LEO on its platform, the token will be tradeable against bitcoin, the U.S. dollar, the tether stablecoin, ether, and EOS. Apparently, the token’s full name, UNUS SED LEO is carried from its formal issuer.
The rumors about the token sale initially surfaced last month to make up for an $850 million shortfall in funds. The exchange’s chief technology officer, Paolo Ardoino, previously stated that Bitfinex closed the $1 billion sales last week, with investments apparently ranging from $1 million to $100 million.
The buyer of the fundraising round wasn’t immediately clear, though, on Friday Bitfinex added that it had sold 100 percent of its tokens, in return for $1 billion in USDT. The post stated
“The overwhelming response and expedient execution of the token sale represents a new milestone for Bitfinex and the greater Blockchain community. In addition to our excitement around bringing such an unprecedented and powerful token to the heart of our community, the Bitfinex team remains dedicated to continuing to grow and develop core infrastructure for our industry as a whole.”
In the white paper of the token, Bitfinex mentions that it will buy back some percent of its circulating exchange tokens every month, based on its monthly revenue or as and when its locked funds by a payment processor, Crypto Capital is released.
The New York Attorney General’s office first revealed Bitfinex funds loss of access held by Crypto Capital in April, though the exchange reportedly provided conflicting stories about the reasons. The exchange stated that its funds were seized by authorities in the U.S., Poland, and Portugal and that it is working to regain access.
Image source – Bitfinex Medium