Unus Sed Leo (LEO) Token Purchases Traced to US Investors

Despite the ban for US investors, the Bitfinex IEO was accessible through offshore investment vehicles.

Unus Sed Leo (LEO), the native token of Bitfinex, may have been sold to US nationals, though through offshore investment vehicles. Based on social media activity, the fund Arrington XRP Capital has acquired tokens during the IEO. The Arca crypto investment fund also managed to acquire LEO through an offshore subsidiary.

https://twitter.com/arrington/status/1152685786615074816

The admission about US buyers, though using offshore companies, may spell additional trouble for Bitfinex. The parent company, iFinex, is still under investigation for offering trading services to residents of New York without holding a BitLicense.

Bitfinex was never completely transparent about the token sale, stating it had raised $1 billion in days, all secured by private investors.

LEO is attracting the attention of potential investors, despite the limitations. The asset, currently trading around $1.30, bounced off from the recent lows, and created expectations for a rally. LEO trading is still relatively slim, at $7 million in 24 hours.

LEO slid as low as $1.22 on July 20, creating temporary expectations it would wipe out its value down to $1. However, it managed to peak at nearly $2, and continued downward later. But the LEO market, being illiquid, may promise at least a short-term rally.

Curiously, the concentration of LEO activity is not on Bitfinex, but on DragonEx, where more than 70% of all trades are happening. OKEx is also carrying the token, as well as a handful of niche exchanges.

LEO is also going through a continuous token burn program, having destroyed more than 500,000 tokens since the launch. Still, it would take about 50 years to burn all of the LEO supply, unless the burn rate increases. Despite its aim to be the Bitfinex native token, LEO is still only tentatively traded. Bitfinex carries volumes around $230 million in 24 hours, of which LEO is still a very small slice.

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