iFinex, the parent company of the cryptocurrency exchange Bitfinex and the stablecoin Tether (USDT), has released the white paper for the new digital asset LEO. The LEO token is a virtual currency that the company is launching in order to gather funds and allow the company to remain liquid in the coming months.
Bitfinex Releases LEO Whitepaper
According to the white paper published on May 8, LEO is going to be a utility token that will be traded against Tether. Users can purchase 1 LEO for 1 USDT. The token is going to be sold through an Initial Exchange Offering (IEO) as many other exchanges are currently doing.
The white paper explains that there will be up to 1 billion LEO tokens issued by the company and they will be sold in a private offering outside the United States. It is worth mentioning that they are going to be very strict with the nationality of those purchasing the digital currency. U.S. nationals will not have access to this digital asset.
It is worth mentioning that iFinex has different plans and projects for the future. At the moment, the firm is working on Ethfinex Trustless, Bitfinex and Nectar. Meanwhile, they will also be working on Bitfinex Derivatives, eosfinex, iFinex IEO Platform and many other things, including projects related to the Lightning Network (LN).
Bitfinex and Tether are currently being investigated by authorities in New York due to the fact that Bitfinex decided to use $700 million from Tether (USDT) to cover up losses of $850 million. Now, the exchange will be working in order to recover funds that it has frozen in Portugal, Poland and the United States and it will also be purchasing LEO tokens back.
The Whitepaper reads as follows:
“LEO has been created with the iFinex and crypto community at heart and in mind. LEO represents a sizeable opportunity for existing iFinex users and those who wish to use iFinex’s platforms and services. A special purpose subsidiary of iFinex intends to sell up to 1 billion worth of LEO tokens.”
About the repurchase plan that Bifinex has established, they will be buying on a monthly basis an amount of LEO tokens equivalent to 27% of the consolidated gross revenues of iFinex from the previous month. They will do this until no tokens are in commercial circulation. Finally, 95% of the recovered net funds from Crypto Capital will also be used to repurchase and burn outstanding LEO tokens within 18 months from the date of recovery.
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