Proof of Work: Binance gets hacked

Emily Pillmore and Stuart Popejoy were interviewed on Hashing It Out to discuss Pact, the smart contract language with built-in Formal Verification …
  • Stellar v11.1.0 is scheduled to be released at the end of the month.

  • Horizon v0.17.6 released this week with minor fixes

  • New Go SDK released, announcement & v1.1 is out.

Izaak from Coda

Coda is the first cryptocurrency protocol with a constant-sized blockchain. Coda compresses the entire blockchain into a tiny snapshot the size of a few tweets using recursive zk-SNARKs.

  • Jiawei has started implementing the stake-voting augmentation to our consensus mechanism. Read the RFC here to learn more about how this makes Coda resilient against long-lasting network partitions.

  • Avery and John have been working on the GraphQL API.

  • Echo fixed a race condition in the transaction pool.

  • Paul worked on implementing thetrust system.

Privacy coins

Paige & Zooko from Zcash

Zcash is a digital currency utilizing zk-SNARKs to enable its privacy-protecting properties.

Mitchell from Monero

Monero is a open-source, privacy-focused cryptocurrency using the ASIC-resistant CryptoNote PoW algorithm. It enforces all privacy features at the protocol level to ensure that all transactions create a single fungible anonymity pool.

Daniel from Grin

Grin is a community-driven implementation of the Mimblewimble protocol that aims to be privacy preserving, scalable, fair, and minimal.

Beni from Beam

Beam is a confidential and scalable cryptocurrency based on Mimblewimble.

  • We will be attending some super cool events during the NYC Blockchain Week 2019, this is here to know all the wheres and whens

  • Have a look on this Atomic Swap Demo done by Beam’s CTO, Alex Romanov

  • R&D Updates

  • We have begun the preparation for the Fork Release

  • Good progress on the Lightning Network POC (Laser Beam)

  • Still a lot to be done when it comes to the integration with Trezor T and to the development of our Atomic Swap Feature #447

  • Work in progress on Bright Boson 2.1 for Desktop and Mobile wallets

  • Work on the Mobile Restore functionality

  • We have begun to develop the following features:

    • Add dialogue window on “Confirm seed phase” screen #132

    • Reference Exchange Rate for Wallet Balance #127

Arnaud from AZTEC Protocol

AZTEC Protocol is an efficient zero-knowledge protocol built on top of Ethereum, making plug-and-play value transmission and asset governance privacy tools for developers and companies.

  • We have submitted an update to EIP-1108, which aims to reduce the gas costs of key opcodes and precompiles used in elliptic curve cryptography. This EIP would benefit a variety of protocols (including Zether, Rollup, Matter Labs and of course AZTEC). For example, an AZTEC transaction would go from ~820k gas to about 197k gas.

  • Our work on a better client side library continues, focussing on making APIs more developer friendly friendly.

  • This week our CTO Zac was on the Zero Knowledge Podcast, talking about range proofs, standards, and privacy on Ethereum.

  • In addition to the two cryptographer roles, we are now hiring for a Senior Solidity Engineer and a Senior Engineer. You can apply here, or by emailing with the name of the role as the subject.

Smart contracting platforms

Evan from Ethereum

Ethereum is a decentralized platform for applications that aims to resist fraud, censorship or third-party interference.

Jing from Plasma

Plasma Group is building “Generalized Plasma”, a layer 2 scaling infrastructure for Ethereum that allows for general state transitions on layer 2.

  • Published explainer of the generalized plasma architecture on medium.

  • Prototyped research of offline atomic swaps, allowing for batch defragmentation

  • Cleaned up the last of the research blockers for plasma payments

  • Had a cringey AMA on Youtube Live.

Erik from NEAR

NEAR is a sharded proof-of-stake blockchain.

AJ from Tezos

Tezos is a self-amending blockchain that features formally verified smart contracts, on-chain governance, and a proof-of-stake consensus algorithm which enables all token holders to participate in the network.

Topper from Quorum Control

Quorum Control makes Tupelo, a permissionless proof of stake DLT platform purpose-built to model individual objects that enables flexible public or private data models.

  • Ongoing Production Framework of Tupelo TestNet

  • Infrastructure improvements focused on bootstrapping process for signing nodes

  • Overnight daily performance benchmarking process in development

  • Protobuff conversion of internal type handling – more seamless types between SDKs

  • Read our published post “No Smart Contract Needed: Real Estate on Tupelo

Michael from Loom

Loom Network is a platform for building highly scalable DPoS sidechains to Ethereum, with a focus on large-scale games and social apps.

  • Released DPoS V3.0 — includes multiple delegations per user, redelegations to other validators, merging of reward delegations, referrer rewards for wallets, voting power cap, statistics in preparation for enabling slashing, web3 Json interface now works with block explorers, Go contracts have alpha support via web3, and various bug fixes

  • Launched Trezor support for PlasmaChain staking via Metamask

  • 188M LOOM tokens are now staked on PlasmaChain, which amounts to ~24% of circulating supply

  • Battle Racers is the latest game being built on Loom

Myles from EOS

EOS is a new blockchain architecture designed to enable vertical and horizontal scaling of decentralized applications.

  • The EOS resource exchange (REX) is officially live on the mainnet

  • EOSIO v1.8.0 release candidate published. New features will allow dApps to abstract away blockchain resource management from end-users.

  • Dan Larimer published an idea for a new model for decentralized stablecoins

  • EOS New York put forth a proposal for a new form of blockchain revenue. Read more about it in Greymass’s post here

  • Liberland announced that it will use EOSIO to build various blockchain-based government services

Zaki from Cosmos

The Cosmos Network is a decentralized network of independent, scalable, and interoperable blockchains.

Kate and Dean from Agoric

Founded by pioneers in secure development and distributed systems, Agoric uses a secure subset of JavaScript to enable object capabilities and smart contracts.

  • On our Electronic Rights Transfer Protocol (ERTP) branch, Mark has made some major advances. We’ve split our purse abstraction into ‘purses’ and ‘payments,’ where payments represent digital assets in transit, with the transfer rights locked up. We’ve also added a way to generalize kinds of digital assets (fungible, non-fungible) and valid operations on them. Lastly, our contracts now have a flexible API for representing a particular position in an ongoing smart contract, which can itself be bought and sold. Someone who buys a position in a smart contract can verify with the contract host to see what they would be joining.

  • We implemented a new device model for their “SwingSet” environment, in which external functions are made available as capability-oriented “device nodes”, allowing them to be shared between vats and managed just like normal objects. This will support inter-machine and inter-chain communication links in the next few weeks.

  • We’ve added a “Comms” vat to our SwingSet environment, which is responsible for sending and receiving messages from external machines and translating and relaying them to other vats on the same machine.

Financial Infrastructure

Antonio from dYdX

dYdX is a decentralized exchange for margin trading, borrowing, lending, and eventually derivatives. dYdX allows traders to trustlessly short and get leverage on crypto assets.

  • Just 5 days after our public launch we’re already up to over $2.3M outstanding supply and $800k outstanding borrow on dYdX!

  • Shipping new frontend features: Added tooltips to the app and working on adding trade history

  • Working on adding USDC to dYdX. If you’re interested in lending or borrowing high volumes of USDC please reach out to

  • Hiring product designers and engineers full-time in SF!

Coulter from MakerDAO

Maker is comprised of a decentralized stablecoin, collateral loans, and community governance.

  • April was extremely eventful for Maker, so if you missed anything, get a recap of all updates, partnerships, and more in our Making Maker blog post.

  • Maker has become an associate founding member of the International Token Standardization Association (ITSA). More info here.

  • On our weekly community call, we demoed a first look at the Multi-Collateral Dai CDP Portal. Coindesk recapped it.

Lazar from MARKET Protocol

MARKET Protocol is a framework for creating tokens that track prices of traditional or digital assets.

  • Completed rewards program UI design

  • Rolled out alerts and notifications using PagerDuty

  • Added MKT:USD rate endpoint to MPX API

  • Integrated new contracts and middleware with MPX admin

  • Refactored MARKET.js in preparation for integration with ethers.js (web3 replacement)

Robert from Compound

Compound is a money market protocol on the Ethereum blockchain — allowing individuals, institutions, and applications to frictionlessly earn interest on or borrow cryptographic assets without having to negotiate with a counterparty or peer.

Layer two and interoperability

Rahul from 0x

0x is an open protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain.

Tony from Liquidity.Network

Liquidity Network is a transfer and swap platform for any token

  • Liquidity Network releases v2 of the mobile app with the following cool features. Details can be found here.

    • Sleek design and cool interface

    • Support for ERC-20 tokens on-chain & off-chain

    • Support for $DAI

    • Improved user experience

    • Hub security checks

  • Integrating the TEX library into the front-end and working on client performances

Dong Mo from Celer

Celer Network is a layer-2 scaling platform that enables fast, easy and secure off-chain transactions for not only payment transactions, but also generalized off-chain smart contracts.

  • We finished new “Backup your wallet” flow and tested Alpha Mainnet OSP config and mobile SDK.

  • We tested game inviting flow, fixed bugs and edge cases.

  • We tested and refined app adaptability for different games from the developer portal.

  • We’ve completed dispute design UI flow for fully decentralized turn-based games and the setup of a new backend stack for Alpha Mainnet Launch.

  • We are in the process of testing and fixing issues found on the new backend.

  • We have Implemented a more robust on-chain event monitoring and support payments with numeric conditions, not only boolean.

Alexandra from Parity Technologies

Parity Technologies builds core blockchain infrastructure, from Parity Ethereum, an Ethereum client, to Polkadot, an interoperable blockchain network.

Application infrastructure

Wes from Theta

Theta is an end-to-end infrastructure for decentralized video streaming.

  • Improved off-chain transaction batching logic, resulting in 80% reduction in redundant/unnecessary on-chain transactions for a given number of concurrent users

  • On the streaming side, introduced new technique of slicing video into smaller segments, improving peering efficiency

  • Completed first monthly distribution of TFUEL for users running the Pre-Guardian Node client

Doug from Livepeer

Livepeer is a decentralized video infrastructure network, dramatically reducing prices for developers and businesses building video streaming applications at scale.

  • Writeup and summary of the DTok, decentralized TikTok, app built by the Stake Capital team on Livepeer.

  • Achieved 99.5% success rate for live video transcoding on the Streamflow test network. Targeting over 99.99% before mainnet upgrade.

  • Shipped “API Node” to create simple REST interface for developers getting started with Livepeer’s upcoming Streamflow release.

Ryan from FOAM

FOAM is building spatial applications and proof of location that bring geospatial data to blockchains and empower a consensus driven map of the world.

  • Highest amount of activity on the FOAM Map yet, this week saw 25+ challenges with active voting. The voting contract increased from 400k tokens to 800k , 1.7m, 2.7m to over 7m tokens.

  • Third weekly scavenger hunt with Blockcities complete, now utilizing an Ethereum logic app running on Microsoft Azure cloud infrastructure for automation.

  • Cartographer Tools Dashboard – Development Preview released

  • FOAM Map Developer Grant program announced! We are excited to see what will be built from this.

  • FOAM at New York Blockchain Week: Find us at Ethereal, Token Summit and ETH New York hackathon happening at the FOAM Offices in the New Lab. We will be hosting workshops, talks and API prizes.


Bowen from Hydro/

Hydro Protocol is an open source framework for building Decentralized Exchanges. DDEX is the first decentralized exchange for Ethereum and ERC-20 tokens built on the Hydro Protocol.

Sam from OpenBazaar

OpenBazaar is an open source project developing a protocol for e-commerce transactions in a fully decentralized marketplace.

  • OpenBazaar version 2.3.3 was released. This release includes one of the most significant UX improvements to date: Listings load almost instantly. We’ve changed how we do IPFS and IPNS calls, as well as added a tiered routing structure, and the result is a huge improvement in loading speed.

  • The infrastructure needed for the social features of the Haven app is now completed, and internal testing of the app is reaching the final states.

China & Asia Updates

Mining 🔨

  • Other than Sparkpool and F2pool, the majority of top Asian PoW mining pools show no interest in staking, due to the current limited TAM (~$6B of total PoS coins) and there is no advantage when competing with exchanges and wallets for stake access

  • After the recent “China Mining Ban”, $BTC hash rate sees a steady growth back to 54E, now less than 10E from ATH 60E

Trading/Exchanges 💰

  • UEX, an Asia based exchange shuts down due to “Business Adjustment”

  • Korea exchange CoinBin (formerly Youbit) filed for bankruptcy with a loss of $26M and a series of scandals involving executive inside jobs and exit scams

  • We are expecting more mid-to-small sized exchanges started in the last cycle to shut down over time

  • A strong signal of the IEO hype dies down is from the recent Binance Launchpad IEO $MATIC: over 58% of the IEO participants won the $MATIC allocation ticket via the lottery system. The previous IEO $CELER saw a lottery win rate of only 1%. The significant decline of the Binance IEO hotness indicates the wave of IEO hype is quickly fading away


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Bitfinex Launches LEO’s Official White Paper With Specifications About The New Digital Asset

Bitfinex has recently released the official white paper for its new digital asset called LEO. At the same time, it will also be releasing a new platform that …

Bitfinex Launches LEO’s Official White Paper With Specifications About The New Digital Asset

Bitfinex has recently released the official white paper for its new digital asset called LEO. At the same time, it will also be releasing a new platform that aims at raising funds through Initial Exchange Offerings (IEOs). This comes after a controversy regarding Bitfinex and $700 million used from Tether’s (USDT) reserves.

Bitfinex Launches LEO White Paper

Bitfinex has just released its white paper for the LEO token that the company wants to launch to the market. This confirms recent reports that the firm was trying to gather $1 billion in order to be able to obtain liquidity and operate in the market in the next few months.

As per the white paper, the private sale will end on May 11 and there might not be a public sale after all. If the firm is not able to gather $1 billion during this private phase, the company could decide what to do with the remaining tokens.

In addition to it, Bitfinex is going to be launching the first IEO that will allow other different projects to raise funds. This is a tendency that can be seen in other crypto exchanges such as Binance or Huobi.

The paper reads as follows:

“Projects that successfully raise capital on this platform are subsequently listed on the two exchanges, as permitted by applicable law, and token sale participants receive their subscribed tokens in their exchange wallets. The first token sale is scheduled for June 2019.”

The LEO tokens will not be sold to US citizens and it will be used in order to gather funds to deal with the current situation that the exchange is experiencing. Meanwhile, the platform will try to recover $850 million in funds that are frozen in different countries.

Bitfinex will also be repurchasing the tokens that it will be launching to the market. Every single month they will be using 27% of their revenue in order to purchase these digital assets. The goal is to buy back all the tokens launched to the market.

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Bitfinex Releases Update on Its $1 Billion Initial Exchange Offering

The embattled crypto exchange, Bitfinex published the official whitepaper for its LEO token sale project earlier today, May 8. The token sale project is …

The embattled crypto exchange, Bitfinex published the official whitepaper for its LEO token sale project earlier today, May 8. The token sale project is expected to raise $1 billion for the company that also announced that it would be launching a platform dedicated to raising funds for similar IEOs.

Bitfinex to Raise $1 Billion by Selling LEO Tokens

Blokt had earlier reported on the proposed $1 billion IEO by Bitfinex. However, the exchange has provided additional information to the general public. According to the whitepaper published by Bitfinex, the crypto exchange aims to raise $1 billion worth of USDT tokens by selling LEO, its own native exchange coin. Bitfinex added that the token sale would be on until 2019-05-11.

The token sale process would be kept private. However, if the company wasn’t able to raise $1 billion via private token sale, then the issuer has the right to sell the remaining tokens at any time and in the manner it deems fit.

The tokens would not be available for investors in the United States or any citizens of the country. The ban of US investors could be due to the lawsuit on Bitfinex and Tether by the New York State Attorney General’s office.

In the whitepaper, Unus Sed Leo Limited, a British Virgin Islands company was named as the issuer of the LEO tokens. Each LEO token would be sold for 1 USDT, although the issuer might decide to accept other forms of payment.

Bitfinex explains that the proceeds from the token sale would be used as working capital and for other business purposes. In addition to these, IFinex would use 27 percent of its monthly profits to buy back LEO from the market until there are no more coins in circulation. Also, roughly 95 percent of the net funds recovered from Crypto Capital and 80 percent of recovered funds from the Bitfinex hack would be used in repurchasing the LEO tokens from investors. The repurchased LEO tokens would be burnt, the whitepaper added.

Bitfinex to Launch a Token Sale Platform

Bitfinex announced its intention to launch a token sale platform by next month. Similar to Binance Launchpad and IEOs by other exchanges, Bitfinex would allow pre-vetted project developers to carry out token sales on their platform.

According to the whitepaper, projects that successfully raise funds via Bitfinex’s Initial Exchange Offering platform would be listed on two cryptocurrency exchanges; Bitfinex and Ethfinex. Furthermore, Bitfinex claims that it would be introducing a licensed and regulated security token exchange. However, it would not be available to U.S customers.

Tether, the company behind the USDT stablecoin and Bitfinex have been involved in numerous scandals over the past few years. There are allegations that the two companies, who share the same management, were responsible for the Bull Run of 2017 by artificially inflating the price of the cryptocurrency.

Recently, the New York State Attorney General filed a lawsuit against the two companies after finding out that Bitfinex lost $851 million via its payment processor, Crypto Capital. Tether meanwhile covered for Bitfinex’s loss using some of its funds. Bitfinex had denied losing the funds, instead, claiming that the funds were frozen and kept safe by Crypto Capital.

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Blokt is a leading independent cryptocurrency news outlet that maintains the highest possible professional and ethical journalistic standards.

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Exploring Bitfinex’s emergency plan: a $1 billion initial exchange offering

A document allegedly released by iFinex Inc.—a privately held financial technology company based in the British Virgin Islands that operates Bitfinex …

Zhao Dong, one of China’s biggest OTC traders, recently published a marketing document detailing iFinex Inc. plans to conduct an initial exchange offering (IEO), aiming to raise $1 billion. The move follows a probe led by the attorney general of the State of New York, which revealed the apparent loss of $850 million in funds by the firm.

Bitfinex Official document about the LEO token

— Dong Zhao (@zhaodong1982) May 4, 2019

A $1 Billion Token Sale

A document allegedly released by iFinex Inc.—a privately held financial technology company based in the British Virgin Islands that operates Bitfinex and owns Tether Ltd.—revealed the firm’s intention to create a subsidiary under the name of Unus Sed Leo Ltd. to make available up to $1 billion of tokens for purchase. The crypto coins, which will be named LEO, aim to be the utility token at heart of the company’s ecosystem.

The paper disclosed that LEO holders will be able to instantly receive benefits across the products and services of iFinex’s trading platforms including Bitfinex, ETHfinex, and EOSfinex. The benefits are divided in four different categories: taker fee reductions, lending fee reductions, withdrawal, and deposits fee discounts, and derivatives taker fee reductions.

  1. All levels of LEO holders will receive a 15 percent reduction on taker fees for crypto-to-crypto and crypto-to-stablecoin pairs while those who hold more that $5,000 USDT worth of the token will be given an additional 10 percent deduction.
  2. Peer-to-peer financing lenders will receive a 0.5 percent discount, which will be capped at 5 percent, for every $10,000 USDT in LEO tokens held on average in a customer’s account during the previous month.
  3. A 25 percent withdrawal and deposit fee will also be given to the token holders, but those who hold more than $50 million USDT worth of LEO will be able to withdraw $2 million USD for free and anything above that amount will be charged a 1 percent fee.
  4. Derivatives taker fees will be downgraded to 0.01 basis points, which will be capped at 2bps, for every $10,000 USDT in LEO tokens held on average in a customer’s account during the previous month.

The one billion LEO tokens issued by Unus Sed Leo Ltd. will be priced at 1 USDT per coin and will be sold in private offerings without general solicitation or advertising. The remaining tokens will be sold on the issuer’s sole discretion.

Tether and Bitfinex confirm USDT is not fully backed by fiat, only 74% of tethers backed with cashTether and Bitfinex confirm USDT is not fully backed by fiat, only 74% of tethers backed with cash
Related: Tether and Bitfinex confirm USDT is not fully backed by fiat, only 74% of tethers backed with cash

All tokens will be bought back by iFinex and its affiliates on a monthly basis at market price, with approximately 27 percent of the firm’s profits from the previous month. If Bitfinex is able to recover the funds currently held by Crypto Capital Corp., it will allocate 95 percent of that money to repurchase the outstanding LEO tokens within 18 months from the date of recovery. In addition, if the exchange can get back a portion of the 119,756 bitcoins that were hacked in 2016, at least 80 percent of it would be used to buy back and burn the tokens.

Interestingly enough Zhao Dong, a Bitfinex shareholder who released the document, implied that around 60 percent of tokens have already been sold by stating that a sum of $600 million has been raised by the firm in private through verbal commitments. If the remaining tokens are not sold, they will be released for a public offering around May 10, 2019.

The Chinese magnate also suggested that the creation of the IEO was mainly motivated by the $850 million being retained by Crypto Capital Corp., which was recently brought up by the New York General’s office in a lawsuit.

An $850 Million Issue

On Apr. 25, 2019, the attorney general of the State of New York in a press release revealed that it had obtained a court order against iFinex Inc. for engaging in a cover-up to hide the apparent loss of almost one billion dollars of co-mingled client and corporate funds. As a result, the firm was ordered to cease further dissipation of the US dollar assets which back the USDT stablecoin.

In 2018, iFinex handed $850 million over to Crypto Capital Corp., a Panamanian payment processor, in order for them to handle Bitfinex customers-fiat-withdrawals requests. After the agreement was made without any written contract or assurance, the funds were seized by American, Polish and Portuguese authorities.

Therefore, the Panamanian payment processor was no longer able to process the withdrawal orders and iFinex Inc. failed to inform its investors of the potential losses and engaged in unlawful behavior.

The attorney general mentioned in the press release that the Hong Kong-based exchange began fulfilling customers’ withdrawal requests by combining customer and company funds together and not disclosing these actions.

“Bitfinex has already taken at least $700 million from Tether’s reserves. Those transactions—which also have not been disclosed to investors—treat Tether’s cash reserves as Bitfinex’s corporate slush fund, and are being used to hide Bitfinex’s massive, undisclosed losses and inability to handle customer withdrawals.”

Recently, the US Department of Justice seized an HSBC bank account directly connected to Bitfinex that contained part of the $850 million in question. The account was allegedly used to commit bank fraud by secretly transferring US dollars to and from customers of cryptocurrency exchanges.

According to an indictment announced on Apr. 30, 2019, by US Attorney for the Southern District of New York, Geoffrey Berman, the bank account was centered around two individuals.

“Reginald Fowler and Ravid Yosef allegedly ran a shadow bank that processed hundreds of millions of dollars of unregulated transactions on behalf of numerous cryptocurrency exchanges. Their organization allegedly skirted the anti-money laundering safeguards required of licensed institutions that ensure the U.S. financial system is not used for criminal purposes, and did so through lies and deceit.”

Moreover, the Polish authorities confiscated approximately $450 million on Apr. 2018 from an account reportedly affiliated with the cryptocurrency exchange in a case that suggested a link between a company owned by Crypto Capital Corp. and a Colombian drug cartel, a local news outlet reported on Apr. 6, 2019.

Up to now, there has been no indication of Portugal’s involvement in the confiscation.


Although the launch of an initial exchange offering may help alleviate Bitfinex financial responsibilities, its reputation has been damaged by all the negative news surrounding the platform.

Over the past few weeks, Bitfinex has experienced a massive exodus of traders. More than $400 million have been moved from the platform’s cold wallet in large amounts of bitcoin and ether to unknown addresses. This could imply that Tether holders have been liquidating their tokens for the two major cryptocurrencies as well as other digital assets as they run out of the exchange.

Tether and Bitcoin prices diverge on exchanges following fraud investigationTether and Bitcoin prices diverge on exchanges following fraud investigation
Related: Tether and Bitcoin prices diverge on exchanges following fraud investigation

The Bitfinex exodus could have created the recent spike in prices where most cryptos are trading at a premium compared to other exchanges, resulting in CoinMarketCapremoving the exchange from its price calculations.

A Reddit user by the name of u/frozen12 recently reported that fiat currencies withdrawals are still not working for Bitfinex customers. The withdrawals are simply stuck for days before they are canceled. Thus, the only way users can take their money out of the exchange is by purchasing cryptocurrencies, which are currently valued at a premium.

Will the $850 million be returned?

As the ongoing probe against iFinex Inc. unfolds, the possibility for the firm to recover the confiscated $850 million seems to be fading away. In the US, the firm is being investigated for bank fraud while in Poland, it has been linked to a Colombian drug cartel. In the meantime, it is unknown why the Portuguese authorities may have seized iFinex funds, but it all points out to be more wrongdoings.

If Zhao Dong is right and approximately 600 million of the 1 billion issued LEO tokens have already been sold to private investors, then there might still exist some credibility around Bitfinex. Only time will tell if iFinex Inc. is able to successfully conduct an IEO, prove their innocence to authorities, and earn back user trust.

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Filed Under: Analysis, Crypto Exchanges, Stablecoins

Ali MartinezAli Martinez

After Ali began forex trading in 2012 In 2014, he came across Bitcoin’s whitepaper and was so fascinated by the idea of a decentralized, borderless, and censorship-resistant currency that he started buying Bitcoin. By 2015, he started traveling to spread the word about Bitcoin.

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Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

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Bitfinex Confirms Token Sale Plans, Aims to Raise 1 Billion USDT

More precisely, the sale is being conducted conducted by “a special subsidiary” of iFinex (the operator of Bitfinex and Ethfinex). LEO tokens will be …

The exchange, which has come under the scrutiny of the New York Attorney General’s office for allegedly losing access to $850 million that was held by payments processor Crypto Capital, aims to sell 1 billion LEO tokens. More precisely, the sale is being conducted by “a special subsidiary” of iFinex (the operator of Bitfinex and Ethfinex). LEO tokens are priced at 1 USDT apiece.

LEO is described as a utility token to be used on the trading platforms operated by the company. The token will grant its holders reduced fees on these platforms and possibly other benefits as well. In this regard, LEO appears to be similar to other exchange-issued tokens such as BNB and KCS.

Buybacks and token burns

Each month, iFinex and its affiliates plan to spend at least 27% of iFinex’s consolidated gross revenues to buy back LEO tokens from the open market. However, the LEO tokens that are spent by users for paying trading fees can also be counted towards this commitment.

Furthermore, the whitepaper states that up to 95% funds recovered from Crypto Capital will be used to buy and subsequently burn LEO tokens within 18 months of the funds being recovered. Up to 80% of the funds recovered from the 2016 Bitfinex hack will also be used in the same manner.

LEO tokens are currently being sold in a private token sale that will conclude on May 11 (Saturday). If less than 1 billion tokens are sold in this sale, the company plans to sell the remaining tokens, but doesn’t disclose any additional details.

Interestingly enough, the whitepaper also reveals that iFinex is planning to launch a platform for IEOs, with the first token sale being scheduled for June 2019.

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