Review on UNUS SED LEO by The hsotaka
My review about UNUS SED LEO
I did some research regarding the UNUS SED LEO token and today i want to share my experience with you.
iFinex Ltd., operator of the Bitfinex exchange, faced legal difficulties in 2019. After it turned out that iFinex had misused USDTether funds to cover financial bottlenecks of its partner company - the Bitfinex Exchange - the Attorney General for New York filed a lawsuit against the company. A hack in the past in which Bitfinex 120,000 BTC was stolen, was also a reason for these financial problems.
In order to cope these payment problems Bitfinex decided in May 2019 to conduct an initial exchange offering to issue its own exchange token called UNUS SED LEO. The functionality of the Exchange token is similar to that of the Binance BNB token and brings many advantages and benefits to the Bitfinex Exchange for hodlers.
Advantages you will get if you are a LEO holder:
- 15% reduced fees for transactions in LEO
- Investing in crypto projects on Bitfinex's IEO platform "Tokinex"
- Lower transaction fees on Ethfinex and future iFinex products.
- A further 10% reduction in transaction fees on crypto-to-crypto currency pairs applies to traders who had an average of more than 5,000 USD.
- 25% discount on withdrawal and deposit fees to the account with the Exchange.
To drive up the price of the LEO token and to attract investors, iFinex decided to offer a buyback program:
Every month, iFinex buys back LEO tokens from iFinex with a market value of 27% of the gross sales of the previous month. These will be destroyed after the buyback.
All in all the it sounds like a good investment.
Nevertheless i still would be careful.
Bitfinex has been linked to several suspected cases of misappropriated money and suspicious actions regarding tether in the past.
Also the success of utility tokens/native tokens of an exchange always depends on the success of the exchange. Exchanges have many competitors today, so better do not invest too much money in exchange utility tokens!
Pros
- Discount on Bitfinex Exchange for token holders.
- Token which runs on two different chains.
Cons
- IEO of this token was only available to private investors at a private IEO
- Token was created because Bitfinex had a lack of financial liquidity
- Listed on many other exchanges, compared to other exchange utility tokens that's an advantage.
- It's really hard to find data about the functionality of this token. I think its not intended to be a token for retail customers of Bitfinex.
