Bitfinex to use Tokinex revenue for burning LEO tokens

One 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.

The article was updated on 15 November, 2019 by Amicus.

9 July, 2019 | AtoZ Markets – As per LEO token whitepaper, iFinex is a financial technology company. That 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. 

Tokenex revenues dedicated to Bitfinex’ LEO redemptions

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.  Bitfinex also said that it has now used revenue. The first IEO on Tokinex, Ampleforth generated it to buy up outstanding LEO tokens. 

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

Bitfinex describes Ampleforth (AMPL) as  an innovative digital asset protocol for ‘smart commodity-money.’ As per the 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 will be on July 16. However, it will run the IEO for Ultra, a blockchain 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 up its $850 million losses.  Back then, the crypto exchange responded to NYAG allegations by saying that it didn’t lose the funds mentioned above but “seized and safeguarded” by the governmental authorities, including the U.S.

One of the Bitfinex shareholders, Dong Zhao is a well-known Chinese trader. Following NYAG’s actions, he announced that the company might soon issue proprietary exchange tokens to bring in Tether equal to the frozen $ 850 million amount.  The native utility token as LEO released for Tokenex. It was for Bitfinex’s internal services.

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

Think we missed something? Let us know in the comment section below.

Share Your Opinion, Write a Comment