This One Cryptocurrency Doesn’t Give an F— About the Crypto Flash Crash
The overall cryptocurrency market capitalization has lost about $400 billion. Nearly $8 billion has been wiped out from the total value locked (TVL) in decentralized finance (DeFi) as the crypto market tanks.
While the crypto market went deep red, one cryptocurrency Unus Sed Leo (LEO), went on to enjoy an uptrend of more than 32% since this past weekend.
Up 9.52% in the past 24 hours, LEO is trading at $1.97, recording 40% gains YTD.
LEO does not give a single fuck.
It's kinda living in its own world.
It's always been good at ignoring everything the market is doing.
For that alone, it's interesting to follow given the rest of the market is heavily correlated. pic.twitter.com/cJa3TAMcMf
— DonAlt (@CryptoDonAlt) February 23, 2021
LEO is a utility token for the iFinex ecosystem, the parent company of cryptocurrency exchange Bitfinex, which is used to get discounts on the spot and futures trading platforms and services.
When iFinex’s payment processor crypto capital was subject to a partial government seizure of funds, the company conducted a private offering of $1 billion for its LEO token to alleviate the cash shortfall.
iFinex also buys back the tokens from the market with its revenues and removes the tokens from circulation.
This latest uptrend could represent the exchange working smoothly during the online volatility, unlike the other exchanges such as Binance, Kraken, and others, which repeatedly shut down, robbing the users of the opportunity that can provide good entry and exit points or ending up liquidating them.
Moreover, with Coinbase getting a more than $100 billion valuation before its public listing, the cryptocurrency market is bullish on exchange tokens. Recently, Binance’s BNB was also enjoying a wild rally pushing it to the 3rd spot.
Other exchange tokens like Solana (SOL) at 40% and Serum (SRM) at 40% are also appreciating in value.
But more importantly, the token might be lifting up on the news of Tether having an $18.5 million settlement with NYDIG. The entire market is actually recording gains now, after the heavy sell-off.