Bitfinex Seeks$1 Billion
Just as initial coin offerings used to whip up a frenzy of interest leading up to the boom in crypto price, initial exchange offerings (IEOs) now seem to be the flavor of the crypto year, as giant exchange Bitfinex is now rumored to be looking to raise up to USD 1 billion in its own IEO.
Founding partner of VC firm Primitive Ventures Dovey Wan is the instigator of this latest rumor, saying that Bitfinex was planning a sale of company-branded crypto tokens and an on-platform IEO. A document purportedly obtained by The Block cites China-based Bitcoin investor and Bitfinex shareholder Zhao Dong as the source. The token, dubbed LEO, will be the one sold to raise capital.
The Block head analyst Larry Cermak Tweeted his findings:
Bitfinex released their IEO white paper to raise $1 billion and The Block has all the details. Summary belowhttps://t.co/34FMFeFLp7
— Larry Cermak (@lawmaster) May 4, 2019
The white paper apparently confirms this news. It is also rumored that Bitfinex will allocate 60% of the placement to private backers, although it is not clear if they will benefit from cheaper prices than retail investors buying the tokens during the IEO.
LEO appears to be a utility token as well as a redeemable asset, much in the vein of Binance Coin (BNB), the native token of the world’s largest crypto exchange by trading volume. LEO will also be bought back each month, and Bitfinex will be doing even more than Binance to burn its tokens, committing 27% of its monthly profits to achieve a higher burn rate. This is expected to make the token even more scarce, thus increasing its value, assuming constant demand for a dwindling supply.
Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.
Image Courtesy: Pixabay