Despite Tether Drama, Bitfinex Exchange Shareholders Plan for LEO Public Offering via Renrenbit

For the past couple of weeks, any news coming out of Bitfinex’s camp showed them in a negative light. However, there is finally a piece of good news. The company’s shareholders seem to be starting the pre-orders. This news comes in even before the company released the whitepaper for the event.

Notably, a couple of days back, Renrenbit, which is a crypto-lending application announced that they will be starting to take in pre-orders on the token sale which might be worth over a billion dollars. Notably, Renrenbit’s founder, Dong Zhao, is also a shareholder of the company and a major company insider.

According to Zhao, the participatory requirements for Bitfinex’s upcoming token sale will have a minimum buy-in of $ 1 million and a token supply of 1 billion tokens all available for $1 each. Additionally, he also mentioned that foreign investors looking to invest in this offering need to first qualify for the sale by fulfilling certain KYC requirements.

He adds:

“The system works on a first-in, first-served basis. If the whole [1 billion is] fully allocated, we will not have to run the IEO to the retail channel, it will be like a private placement.”

It is still quite unclear as to how Bitfinex intends on using its raised incomes. Many experts maintain that the company will use the funds to make up for an “$850 Million” shortfall that it suffered last year.

Bitfinex has been shrouded in controversy for several years. The exchange has direct connections to Tether, which makes the popular USDT stablecoin. That stablecoin claims to be backed 1:1 by USD cash reserves, although the true nature of those reserves has changed over the years – including whether or not they exist in liquid form. The NY AG claims that Bitfinex took a suspicious loan from its sister company, Tether, to cover up an $850 million hole in its finances. The hole was caused after Bitfinex’s payment processor, Crypto Capital Corps, failed to return locked up funds.

Much of this report still remains unclear, however, as more news around the IEO starts to unfold, BitcoinExchangeGuide will be the first to report it.