Altcoin News: Bitfinex Shareholder Revealed New Details of a Possible Crypto Exchange Token sale

May 2, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Bitfinex may begin selling its token in order to raise $1 billion next week, CoinDesk writes, citing a shareholder statement from the crypto-exchange Zhao Dong, who previously disclosed information about the proposed initiative of the company.

According to Dong, potential investors should contact either him personally or with the DFund group organized by him. The minimum investment amount is $1 million, token emission — 1 billion, worth $1 each.

“Only qualified foreign investors will be allowed to invest,” who will express their non-binding intention to take part in the campaign before the end of the week. After studying the white paper, they will be able to refuse to participate or confirm it by making a deposit in the amount of 10% of the declared share.

Tokens will be sold on a first-come, first-served basis, Dong explained, adding:

“If the whole [1 billion is] fully allocated, we will not have to run the IEO to the retail channel, it will be like a private placement.”

How exactly the funds will be used, Dong did not specify. Probably, they will partially go towards compensation of the $850 million lost by Bitfinex after the transfer of the payment company.

Dong claims that when issuing a token, Bitfinex will use a “hybrid” model that combines the characteristics of BNB, issued by the Binance exchange and used to pay commissions on its platform, and BFX, which Bitfinex itself issued in 2016 against funds lost due to hacking. extinguishing them next year.

“Bitfinex will destroy [the] token with full unfrozen funds in the future, in addition to referring to the logic of BNB token,” he wrote.

Earlier, a representative of Bitfinex and Tether confirmed that at present companies do not have sufficient liquid reserves to provide all the USDT in circulation.

Author: Marko Vidrih