Bitfinex IEO details were disclosed, closing the private placement on May 10

On May 4, a document titled "Bitfinex ICO white paper" began circulating. Zhao dong, founder of DGroup and a stakeholder who was soon in touch with the management teams of Bitfinex and iFinex, later wrote on his wechat moments that "the white paper you see is a copycat. The real white paper hasn't been released yet."

After that, Mr. Zhao and DGroup released the key information of the authorized Bitfinex IEO white paper, and released the Bitfinex private placement official document on the evening of May 4. We collated some information.

1. The Token name is LEO, and it accepts USDT instead of BTC and ETH. Total issuance is $1 billion, and only USDT participation is accepted. But only those invited by the white paper can take part in the private placement, which ends on May 10th. Private placement after the end of the surplus, will be public offering.

2. Now IEO is raising funds because at the end of 2018, Bitfinex and iFinex were subject to judicial investigation and were frozen by 850 million dollars, which impacted the company's operation.

3. Similar to Token economic model of other exchanges, LEO also has buyback destruction mechanism. In addition to regular buyback destruction, at least 95 per cent of the future $850m of assets unfrozen will be used for buyback destruction.

4. The usage scenarios of LEO are mainly in Bitfinex exchange, such as trading fee discount.

5. According to Bitfinex, there were 35~60 team members in 2017, with a net profit of $326 million; In 2018, there are 60 to 90 employees, with a net profit of 404 million us dollars.

It can be seen that the Token sale of Bitfinex is very urgent. Under the circumstance that the white paper has not been officially issued yet, the private placement will be closed on May 10 and only USDT will participate in it. It also shows that the freezing of $850 million in Bitfinex and iFinex has had a significant impact on the company and has directly affected short-term operations.

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