After fake whitepapers of the upcoming Bitfinex Initial Exchange Offering flashed all over the web, the company has officially published its whitepaper on the official website of the exchange today i.e. 8th May 2019. Bitfinex plans to raise $1 billion through an initial exchange offering. Also, the exchange is planning to launch a new platform which will be similar to Binance Launchpad and allow pre-vetted blockchain and cryptocurrency projects to commence their token sale on the new platform. The platform (as announced by Bitfinex) shall be launched next month.
As reported earlier, Bitfinex plans to raise $1 billion through its IEO. The whitepaper published by Bitfinex, only USDT (Tether) shall be accepted in terms of investment during the IEO. The native coin of the exchange will be called LEO. According to the whitepaper, the Initial Exchange Offering shall be on until the 11th of May 2019.
The LEO token shall not be available for sale for the investors in the United States or any citizen of the United States due to the recent lawsuit filed against iFinex, the company behind Bitfinex and Tether by the New York State Attorney General.
The IEO shall be kept private for now, however, if the exchange is not able to raise the proposed $1 billion investment during the private sale, then the issuing company (Unus Sed Leo Limited, located in the British Virgin Island- as per the whitepaper) will have the right to sell the remaining tokens through any manner it deems fit and at any time it feels.
The tokens shall be sold at the rate of 1 LEO= 1 USDT. However, according to the whitepaper, the issuing company also has the right to accept any other form of payments as well.
The investments shall be used for the working capital requirements of the company as well as other purposes of business. Also, the company (iFinex) will be using 27% of the monthly profits to buy back the LEO token from the holders until no token remains in circulation. Apart from this, around 95% of the funds recovered from the Crypto Capital and 80% of the funds recovered from the infamous Bitfinex hack shall also be used to repurchase the tokens from the holders. All the tokens that will be bought back from the holders shall be burnt forever by the company, hence, the token will have a decreasing supply.