As many of our readers may already be aware of, over the course of the past week or so, there have been many rumors circulating over the internet that claim Bitfinex may make moves to raise a whopping sum of USD $1 billion via a token sale event as early as next week.
In regards to these developments, Bitfinex shareholder Zhao Dong recently took to WeChat Wednesday afternoon to tell his followers that any “individuals interested in participating in the above mentioned token sale event” should either reach out directly to him or contact a company called DFund (a group that Zhao himself founded).
The Inside Details
According to Zhao, the participatory requirements for Bitfinex’s upcoming token sale will be as follows:
- Minimum buy-in — $1 million
- Total token supply — 1 billion tokens
Each token will be available for a price point of $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 — that too by Sunday.
Also, investors have the option to withdraw/cancel their soft-commitments after reading the whitepaper if they wish to do so.
“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 plans on using its raised proceeds. However, many experts believe that the company will use the funds to make up for an “$850 Million” shortfall that it suffered last year.
More On The Matter
When talking about Bitfinex’s latest offering, Zong was quoted as saying that the upcoming token can be thought of as a “hybrid” between Binance’s BNB token and BFX coin (the alt-asset issued by Bitfinex to its customers back in 2016 after the company was hacked by third party miscreants).
“Bitfinex will destroy [the] token with full unfrozen funds in the future, in addition to referring to the logic of BNB token,”
In closing out this piece, it should be pointed out that just last week the New York Attorney General (NYAG) issued a circular stating that Bitfinex had officially lost access to its native fund pool — since the firm had been the recipient of a $625 million “transfer” from stablecoin issuer Tether in order to cover up for a massive monetary shortfall that it suffered over the course of the past 12 months or so.
For those of our readers who might not be aware, Tether’s executive brass comprises of individuals who also serve Bitfinex’s governance board.
Lastly, in regards to the matter, it has recently come to light recently that Tether offered Bitfinex a line of credit, thereby granting the firm with access to as much as $900 million.