Zhao Dong, one of the investors in the Bitfinex crypto exchange, has published a document detailing the round of private sales of the upcoming initial public offering of stock exchange (IEO) worth up to $ 1 billion.
Bitfinex is going to raise up to $ 1 billion for the release of the LEO token.
The document, allegedly issued by iFinex (the founder company of Bitfinex and Tether), states that stock tokens worth up to 1 billion USDT are available for purchase. By the way, the future coin of the exchange was named LEO. The token described in this promotional document will be intended to be used as the basis of a company's ecosystem.
The document also notes that owners of LEO tokens will receive a discount on crypto commissions on Bitfinex and the decentralized EOSfinex exchange. In addition, with the help of a token, it will also be possible to receive discounts on withdrawals, deposits, commissions of derivative financial instruments. Similar benefits will be provided to users on other trading platforms, products and services of iFinex.
The material also states that the sale of LEO will not be available to citizens of the United States and Canada.
According to The Block, the sale of tokens will be carried out in order to cover the $ 850 million of funds from the exchange, which are currently frozen in several accounts of a third-party payment organization.
Recall, just a little more than a week ago, the Prosecutor General's Office of New York accused Bitfinex of illegally using the funds of its subsidiary Tether to cover the lost $ 850 million.
Rumors that Bitfinex plans to raise funds through IEO appeared in late April. Zhao confirmed these rumors earlier this week.
Some crypto analysts have already said that the release of such a number of new tokens may affect the stability of the industry in the short term.