Bitfinex’s LEO Token Spikes 30% in a Week With OKEx Listing
The asset closes in on the $2 level, as it integrates itself in the crypto ecosystem.
The newly launched LEO token on Bitfinex is trying to make its presence felt, after rising by 30% in the past week. CoinGecko trading data showed the token going as high as $1.96, up from recent lows around $1.54.
LEO is one of the more closely watched tokens, as Bitfinex skeptics see it as a way to collateralize the exchange’s missing assets. Bitfinex reportedly lost access to $850 million of its funds, after Crypto Capital, its banking provider, faced an international investigation for unauthorized banking services.
The most recent price spike followed the announcement that OKEx was listing the token, showing the potential for acceptance.
The amount of LEO issued was just enough to cover the $900 million loan negotiated with Tether, Inc., the issuer of USDT tokens.
Despite the skepticism, the LEO asset goes through a new price appreciation cycle. But the price rises on very slim volumes, below $20 million in 24 hours. The recent rally brought LEO to a record price of $1.99, nearly double from the $1 nominal price during the token sale.
In theory, LEO could fall as low as 1 USDT, behaving as a stablecoin, while having no upside limit, traders comment:
The LEO asset was also distributed in a private placement, so there is no way to tell if there is organic demand, and whether the “whales” that bought the asset intend to hold or sell. LEO offers trading bonuses, as well as withdrawal discounts, to large-scale owners.
The LEO token arrives at a time when most leading exchanges have a native asset used for trading pairs and various preferences. Bitfinex is an older market operator, and with the exception of an ad-hoc token to cover for the 2016 hack, lacks a native token. Like Binance Coin (BNB), LEO will go through regular token burns to distribute earnings and limit supply.
The asset is still in the price discovery stage, and there are expectations for a larger-scale rally. Still, skeptics see the asset as extremely risky.