Bitfinex Posts Continuous LEO Token Burn Schedule Over 50 Years
At this pace, the entire LEO supply would be gone in 50 years, paying back the $1 billion for which the tokens were sold.
Bitfinex has decided on a continuous schedule for buying back its new native token, Unus Sed Leo (LEO). The token burns, visualized on a new tracking tool, are a way to share the earnings of the exchange, but also a payback on a $1 billion loan taken to cover holes in the finances of Bitfinex.
The LEO token was issued through an initial exchange offering (IEO) on Bitfinex in May, following attempts to take out a loan from Tether (USDT) to the tune of $900 million. Bitfinex was pressed for a decision when it became clear it lost access to $850 million. The loss was deemed temporary but was still worrying as Bitfinex traders reported an inability to withdraw funds.
The funds are still locked due to the investigation against Crypto Capital, a company that provided payment services to several exchanges.
LEO price at the IEO was $1, and most coins were reportedly sold to private investors. Initially, LEO was used to offer preferential withdrawal fees, other bonuses and decreased trading fees. The price of LEO rallied in the past week, going up to an all-time peak of $2. The current price for the asset is $1.90.
Because of its rapid price appreciation, LEO is sparking some enthusiasm. But skeptics see the asset as risky, potentially to be dumped by the large-scale owners on unsuspecting traders. LEO now trades on Bitfinex, but was also recently added to OKEx. OKEx volumes for LEO are under $20 million’s equivalent in 24 hours, in a pairing with USDT.
The LEO token shows a supply above 999 million tokens through the tracking service. However, the Bitfinex LEO token on the Ethereum network shows a supply of 660,000. The transactions listed show a movement of LEO tokens between the Bitfinex wallets and OKEx storage.