Altcoin News: IEO Bitfinex — White Paper Details Published

May 4, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Bitfinex intends to raise $1 billion during the Initial Exchange Offering (IEO) of its token, according to an excerpt from a white paper published by shareholder Zhao Dong, from which The Block cites excerpts. The final version of the document is subject to change.

The Bitfinex token will be released under the LEO ticker and initially offered to a limited group of investors, after which, if the allocation is not distributed before May 10, the general public will be able to participate in the campaign. Dong claims that Bitfinex has already received verbal confirmation of investors about their intention to acquire tokens worth $600 million.

The Bitfinex document notes that one of the main reasons for the release of the token is that the company’s $850 million were frozen in several accounts controlled by the payment company Crypto Capital. The exchange also states that it “actively collaborating with the legal investigation and applying to unfreeze these funds through legal procedures.”

Tokens will be redeemed by the exchange on a monthly basis at market prices. For this purpose, Bitfinex intends to allocate at least 27% of its profits. The company reserves the right to redeem tokens within 18 months after defrosting funds. At least 95% of the unfrozen funds will be used to repay LEO for an equivalent amount. Dong also said that if the company is unable to return the frozen assets, it will use its operating profits to pay off the tokens and based on the figures for 2017–2018. expects to redeem them for four years.

In addition, Bitcoins lost by the exchange in August 2016 can be used to repay LEO, when 119 756 BTC were stolen from its wallets as a result of a hacker attack if any part of them could be restored.

LEO Token will allow traders to receive discounts on fees charged for trading on the platform. LEO holders will receive a 15% discount on transactions in “crypto-crypto” pairs, where they will act as takers, more profitable lending rates and withdrawal conditions.

According to the white paper, Bitfinex’s profit in 2018 was $404 million, $261 million was paid as dividends.

Author: Marko Vidrih