Bitfinex Breaks Ice About Its Private IEO Sale of LEO Tokens with Unus Sed Leo Limited (USL) News
Some days ago, a rumor started to surface in the crypto community affirming that Bitfinex was making a private sale of LEO tokens during an Initial Exchange Offering (IEO). The information circulated for over a week now, but the company was initially not talking about this secret sale of tokens.
However, the company has decided to talk more about this now on its blog today, May 10. According to the company, the LEO tokens were being sold by the company and the goal of the blog post was to clarify the situation for the investors so they would know what was happening and could be ok with the whole situation.
According to the official information, the sale was being made for a new subsidiary of iFinex, Unus Sed Leo Limited. The exchange decided to sell the tokens of this new company to private investors first and the sale started on May 8. The idea was to sell up to one billion USD in tokens during the private sale, which only had qualified investors.
These new LEO tokens will be used as utility tokens, according to the blog post, and they will be the new heart of the iFinex system.
It was also revealed that individual investors and the general public will not be able to participate in the token round, as well as people from the United States and Canada (mostly because of legislation issues).
The reports seem to indicate that the investors buying the tokens will be able to get future benefits in services provided by the company. At the moment, the company expects the sale to end in around seven days.
It Is Good That The Company Showed Some Transparency
Even after all the confusion last year that the company was not clear enough about the money that it used to back its USDT tokens, the company decided not to tell when Tether lended around $800 million USD to Bitfinex last month.
This has caused a big controversy as the money was originally used to back the value of the USDT tokens. Now, it is a breath of fresh air that the company decided to start being more open about what it is doing.