Bitfinex’s IEO LEO slumped to an all-time low under $1
LEO is the Utility Token within the iFinex ecosystem, the parent company of both Bitfinex and Tether. Its whitepaper was released in May this year. The goal seems to be to raise capital to help Bitfinex to offset the $ 850 million in shortages following the Tether scandal. The token sale has raised $ 1 billion in USDT, Bitcoin and US dollars.
Bitfinex LEO fell to an all-time low
In October, Bitfinex’s LEO token fell below the basic price of $ 1 for the first time. And to this day, its price continues to fluctuate below this level. At current prices of $ 0.88 (its all-time low) marks a 55% decline in six months.
The token itself has the same function as Binance Coin (BNB). LEO holders benefit from various perks, such as reduced transaction fees.
Unfortunately, its US dollar value since its launch this summer has been in a marked downtrend. After the initial strong rally in June, coinciding with the Bitcoin price rising to just $ 14,000, money has been continuously flowing out of the market over the past six months.
From a record high of around $ 1.99, LEO’s price has dropped by more than 55%. It is currently trading in a tight range of $ 0.88 – $ 0.90. This has been reported by trader Kazanç Rehberi.
♦️Bitfinex borsasının tokenı olan Unus Sed LEO (LEO) tüm zamanların en düşük seviyesine geriledi. Bu yılın başında çok ciddi bir yatırım ile piyasaya sürelen $LEO; 2$ seviyesinden 0.88 cent seviyesine kadar geriledi.#bitfinex #leo #kriptopara #kazancrehberi #bitcoin $BTC $ETH pic.twitter.com/EvetUW4A5z
— Kazanç Rehberi (@kazanc_rehberi) December 14, 2019
As a lifeline to LEO prices and to reward early LEO buyers, Bitfinex operates a coin-burning system. The company uses some cumulative profits to acquire LEO and remove it from circulation forever. Coin burns have happened regularly. You can see them on both the blockchain explorer and a separate page on Bitfinex’s website.
In theory, LEO holders should benefit from this coin-burning system because increasing scarcity will mean prices will rise faster. However, it does not entirely take place that way. The continuous decrease in the price indicated that the selling pressure of investors was greater than the guaranteed buying pressure created by the exchange itself.
The causes of falls?
Analysts have given a number of key reasons for the LEO token’s no-stop slump.
Firstly, LEO got into the game at the wrong time, it’s a bit late. After the tremendous success of BNB and some other exchange tokens such as KuCoin Shares and Huobi Global Token, it is possible that LEO will always be a latecomer.
Secondly, LEO is launched on the exchange with the slowest growth in 2019. At the same time, the number of transactions is quite low, although it has stated it will compete with BTC. LEO performance is steadily declining from a high of nearly $ 2. If you invest in LEO, you lose money with an ROI of -6.11%.
Source: Trading View
Finally, the scandal between Bitfinex and Tether. This is probably not news for people who are interested in the cryptocurrency space. Rumors about shady activities of Bitfinex and Tether have been going on for a long time. Although the aforementioned legal issues affect the LEO price, if viewed honestly, the demand for Bitfinex tokens has faded from the beginning.
There is no small correlation between the failure of Tether and Bitfinex with the price of LEO tokens. Trader “investmox” tweeted that:
If #Tether falls, #Bitfinex falls. And if those 2 fall, #LEO (UNUS SED LEO) falls.
This will mean several $$$ liquidations on Bitcoin & Ethereum markets. Now this could be a black swan event in crypto noone is paying attention to!
— investmox (@investmox) December 14, 2019
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