The cryptocurrency exchange Bitfinex's shareholder Zhao Dong has released a new promotional material detailing the exchange's upcoming initial exchange product (IEO) at a price of $1 billion. This information was shared in the tweet of Dong on May 4th.
The document, allegedly released by iFinex – behind Bitfinex and the company Tether (USDT) – announced a token of up to 1 billion usable USDT worthy of exchange, known as LEO, for purchases. The token described in the marketing document – specifying it is not a white paper – a utility token designed to be at the heart of the company's ecosystem.
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The marketing document promises that LEO token holders will enjoy reduced encryption fees to encrypt Bitfinex and the company's decentralized exchange EOSfinex transaction fees. In addition, the token will also report a reduction in loan cost reductions, withdrawals and deposit fee discounts, and a reduction in derivative fees.
The document promises that users will also see similar advantages in future iFinex trading platforms, products and services.
The material also stipulates that citizens of the United States and Canada, as well as citizens of other jurisdictions, are not eligible for LEO sales.
The ongoing token sales are to pay $850 million in exchange funds, which are currently frozen by multiple accounts controlled by a payment processing company, the encrypted news media The Block reported today. This publication cites a white paper excerpt from the new token.
Just last week, the Office of the Attorney General of New York accused Bitfinex of using the subsidiary’s funding company, Tether, to bear the $850 million in losses.
The rumor that Bitfinex hopes to raise funds through IEO was originally started at the end of April, and Zhao rumored the rumor earlier this week with less details.
Also last week, Cointelegraph reported that lawyers from Tether confirmed that the company had only enough cash to support its Stabilization Coin (USDT) to increase its supply by three-quarters.