One of the ways native tokens operate is by facilitating transaction fees on DeFi applications, including crypto exchanges. One of the most well-known tokens for an exchange is Binance’s $BNB.
Another token that is used for crypto exchanges is the LEO token. What is it? What are its use cases?
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LEO Token Price to PHP
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An Introduction to LEO Token
The LEO Token, $LEO, is the utility token for the platforms under iFinex, including Bitfinex and Ethfinex. iFinex’s motto is “Unus Sed Leo,” where the token name LEO came from, a Latin phrase for “One, But a Lion.”
This phrase argues for quality over quantity, as it describes how a lion was embarrassed for having only one child, but it answers that at least its child is a lion, as explained by Steven Buchko (2019).
IFinex had an initial exchange offering (IEO) for $LEO in May 2019, during a private sale, and in June 2019, for a public sale, for 1 USDT for each token. During the IEO, a whitepaper on $LEO was also released.
Originally, $LEO was planned to be pegged to the U.S. Dollar and be backed by a reserve of $USDT. However, due to some reasons, according to the team, $LEO is now backed by the firm’s own reserves and is not pegged to the U.S. Dollar anymore.
Moreover, $LEO is normally used for the iFinex-produced exchanges; alongside Bitfinex and Ethfinex there are Dazaar, a decentralized data marketplace; Betfinex, a betting platform; and μFinex, a suite of tools and libraries to build exchanges and derivatives markets.
Basically, $LEO owners and holders get discounts on these platforms. Bitfinex and Ethfinex also offer a 25% discount on crypto deposits and withdrawals and up to 5% discount on peer-to-peer finance lending.
Furthermore, the two iFinex platforms also charge taker fees, a type of trading fee that is charged to users who place market orders on an exchange, of 15%. But users who earn more than $5,000.00 could enjoy up to a 10% discount on taker fees. These fees are normally in $LEO.
$LEO Burn Commitments
Starting from its 2019 launch up to today, iFinex pledged to purchase $LEO from the market, which equates to 27% of the firm’s consolidated gross revenues from the previous month. iFinex is said to do this until there is no $LEO in commercial circulation.
Also, in 2019, BitFinex faced multiple legal challenges after the New York Attorney General’s Office accused Bitfinex and Tether of fraud and money laundering. It was because Bitfinex allegedly transferred $850 million to Crypto Capital Corp., a payment processor company controlled by Tether’s CEO. According to iFinex, at least 95% of recovered net funds from Crypto Capital will be used to repurchase and burn outstanding LEO tokens within 18 months from the date of recovery.
Lastly, in August 2016, Bitfinex confirmed that more than $72 million in $BTC was stolen from the customers’ accounts managed by iFinex.. At least 80% of recovered net funds from the BitFinex hack will be used to repurchase and burn outstanding LEO tokens within 18 months from the date of recovery.
|All-Time High||$8.14 (February 08, 2022|
|All-Time Low||$0.799859 (December 24, 2019)|
How to Buy $LEO?
- To start buying, selling, holding, and trading $LEO on exchanges, users should create and verify an account by providing requirements such as personal information, an email address, a phone number, a valid ID, and a selfie.
- Choose the $LEO trading pair; it could be $LEO/USDT, $LEO/USD, $LEO/PHP, or others.
- Buy $LEO by typing the desired amount.
- Check the crypto wallet of the exchange, select the transfer or send option, and type in the wallet address of the receiver. Make sure that the wallet is compatible with $LEO.
- Check if the transaction is complete. Usually, the amount has already been loaded to the wallet.
Using $LEO on iFinex platforms is a good choice, as the exchanges offer a lot of perks and big discounts.
Its website claims that $LEO aims to provide a fast, secure, decentralized, and transparent way for users to enjoy the iFinex-produced platforms. The company also seeks to reward users for their participation and contribution to the network’s operations and maintenance.
Overall, before investing in cryptocurrencies, it is advised to practice due diligence and do your own research.
This article is published on BitPinas: Unus Sed Leo – Leo Token Crypto Overview and Usecase
- Before investing in any cryptocurrency, it is essential that you carry out your own due diligence and seek appropriate professional advice about your specific position before making any financial decisions.
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Original article follows (may contain outdated information)
iFinex is the parent company of crypto exchanges Bitfinex, Ethfinex, and Eosfinex. Furthermore, they are closely associated with the stablecoin company Tether Limited, whom they share common management and shareholders.
Last 2018, Crypto Capital, Bitfinex’s payment processor, was forced by the US government to cease operations due to allegedly committing bank fraud and providing “shadow banking” services to cryptocurrency exchanges. Consequently, their funds were seized, including Bitfinex’s $850 million.
The exchange is working on getting their money back; however, it’s uncertain whether they ever could. This is the main reason they launched Unus Sed Leo, to make up for the lost funds. Therefore, they raised $1 billion via private offering of the new exchange token.
Bitfinex promised to repurchase outstanding LEO tokens and burn them if they ever recover the lost $850 million fund from Crypto Capital. This will bring up the price of the token dramatically due to scarcity. Furthermore, the exchange will also use 80% of their recovered funds from the 2016 hack to repurchase and burn LEO, which would raise the price even more.
Besides the speculation, LEO tokens also have a real use-case as they can be usable across all of iFinex’s platforms, projects, products and services; including the ones in the future.
iFinex currently has three crypto exchanges, and holding LEO accords you a discount in trading fees, lending fees, as well as deposit and withdrawal fees.
Some of the iFinex’s future projects and services include Bitfinex Derivatives, iFinex IEO platform, a regulated Security Token exchange, Dazaar, Betfinex, μFinex.
The LEO token has a dual-protocol launch, which means it will be issued on two blockchains: Ethereum and EOS. According to the company, this strategy would provide enhanced flexibility and ease of use for token holders, contribute to blockchain interoperability development, and allow for LEO to become an integral part of the decentralized exchange space. This means that token holders can easily swap between two blockchains while Bitfinex acts as a bridge between chains.
In addition, the exchange also plans to issue LEO tokens on the Blockstream Liquid Network, which is a settlement network linking together different cryptocurrency exchanges and institutions around the world.
All in all, Unus Sed Leo is a promising token with a vast ecosystem where it could be utilized. But like any other exchange token, its success is highly tied to the exchange that created it, which in this case, are Bitfinex and its parent company iFinex.
This article is first published on BitPinas: Unus Sed Leo (LEO) Cryptocurrency Overview