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Bitfinex IEO raised $1 billion in just 10 days

Bitfinex IEO raised $1 billion in just 10 days

May 17, 2019 | AtoZ MarketsBitfinex IEO raised $1 billion in a recent private token sale. It took one of the largest crypto exchanges just 10 days to raise money, that will help Bitfinex to cover $850 million that was seized by the governmental authorities.

Bitfinex IEO token sale results announcement on Twitter

On Monday CTO at Bitfinex,  Paolo Ardoino tweeted about successful finalization of the Bitfinex private token sale, by saying that it “ is able to raise 1b USD in 10 days”.

The company collected money via an initial exchange offering (IEO) of Tether, a stablecoin operated by its sister company. According to Ardoino, multiple private companies—“giants in our industry and outside”—invested over $100 million each.

The money Bitfinex IEO raised supposed to cover the $850 million which exchange can’t currently access, due to the recent scandal related to Bitfinex and New York Attorney General’s office litigations.

Investors fulfill their commitments to Bitfinex

Just a week ago one of the major Bitfinex shareholders Chinese trader Dong Zhao announced that Bitfinex IEO has already received 1 bln сommitments in USDT (Tether). Zhao reported that investors have already lined up to buy the Bitfinex exchange LEO token, that will reportedly be used on Bitfinex for internal services.

The first time the Bitfinex shareholder mentioned in social media about the crypto Bitfinex’s plan to issues its own proprietary exchange token.  He mentioned then, that most likely Hong-Kong based crypto exchange would not be doing a public sale for its token.

Crypto market against Bitfinex?

One of the largest crypto exchanges has experienced a massive departure of traders since the New York City Attorney General’s office announced that Bitfinex and Tether used tether funds in an unethical way.

More than a week later, after a scandal surrounding iFinex Inc., which manages Bitfinex and owns Tether Ltd., the popular Crypto market cap tracker CoinMarketCap (CMC) decided to exclude Bitfinex the market capitalization assessment.

The experts suggest that the reason behind the sudden rise in prices on the Bitfinex platform, which led to its removal from the CMC, is that Tether holders exchanged their tokens for other cryptocurrencies to withdraw them from the exchange. Will Bitfinex be able to recover its reputation? Only time will say.

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