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Bitfinex to use Tokinex revenue for burning LEO tokens

Bitfinex to use Tokinex revenue for burning LEO tokens

July 9, 2019 | AtoZ MarketsOne of the largest crypto exchanges, Hong-Kong based Bitfinex has announced in its Medium post that it will spend 27% of past and future their native IEO platform’s Tokinex revenue on burning LEO tokens.

Tokenex revenues dedicated to Bitfinex’ LEO redemptions

As per LEO token whitepaper, a financial technology company iFinex, which owns and operates Bitfinex committed buying back LEO from the market equal to a minimum of 27% of the consolidated gross revenues, until commercial circulation runs dry. 

The whitepaper outlines, that “repurchases will be made at then-prevailing market rates.”  The Bitfinex’s blog post emphasized that the 27% figure applies to “past and future” revenues. 

The Hong-Kong based crypto exchange said that it has now used revenue generated by the first IEO on Tokinex, Ampleforth, to buy up outstanding LEO tokens. 

Tokinex as the crypto company’s native IEO platform was unveiled in May 2019, allowing verified users to take part in token sales from exceptional Bitfinex cryptocurrency projects. 

Ampleforth (AMPL)  is described by Bitfinex as  an innovative digital asset protocol for ‘smart commodity-money’. As per latest reports, within 11 seconds, selling 10% of its token supply, Ampleforth’s IEO raised $5 million. 

According to the crypto exchange’s post, Tokinex’s next IEO is scheduled for July 16. It will run the IEO for Ultra, a blockchain-based PC gaming platform. 

Recalling events leading to LEO issuance 

A few months ago New York Attorney General’s office announced that Bitfinex and their partner Tether used tether funds in an unethical way to cover their $850 million losses.  Back then the Hong-Kong based crypto exchange responded to NYAG allegations, by saying, that aforementioned funds were not lost but, “seized and safeguarded,” by the governmental authorities, including the U.S.

Following NYAG’s actions, one of the Bitfinex shareholders Dong Zhao a well-known Chinese trader announced that the company may soon issue proprietary exchange tokens to bring in Tether equal to the frozen $ 850 million amount.

The native utility token dubbed as LEO released for Tokenex was expected to be used on Bitfinex for internal services.

A month later, New York City Supreme Court, restricted Tether Ltd, from providing financial aid to its partner, Bitfinex.  The same period, when the NY Supreme Court released its order, Dong Zhao announced that LEO token’s offering project had already received 1 bln сommitments in USDT (Tether).

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ, nor should they be attributed to AtoZMarkets.

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