Bitfinex operator iFinex has issued a white paper for a USD 1 billion initial exchange offering (IEO), following days of speculation from internet users.
Per a release, the company says it’ll issue 1 billion LEO tokens through Unus Sed Leo, a company based within the British Virgin Islands. The company says it’ll use the take of the IEO “for working capital and general business purposes, including capital expenditures, operational expenses, repayment of [debts] and other recapitalization activities.”
Token sales are going to be created in Tether (USDT), a stable coin that’s additionally operated by iFinex. The token worth has already been set at “1 USDT per LEO token.” However, Bitfinex seems to possess left the door open for different types of investment, stating, “The institution could settle for different types of [compensation at its discretion].”
The exchange additionally says it plans to launch derivatives trading next month, using USDT as collateral.
In the document, Bitfinex says,
“From Its Expected June 2019 Launch, Qualified Bitfinex Account Holders Are Going To Be Able To Trade A Replacement Hedging Product Through A Derivatives Wallet. The Product Can Have USDT-Based Collateral (Unavailable Within The Remainder Of The Market), Up To 100x Leverage And Isolated Margin For Individualised Risk Level.”
Bitfinex is presently involved in a very bitter legal struggle with the New York Attorney General (AG), that has suspect iFinex of “covering up” covert loans created to a Panamanian company – “helping itself” to Tether money reserves.
Also Read: Bitstamp Owner Could Re-invest USD 8.8 billion Windfall in Crypto
The company has hit back, inquiring for New York to dismiss the costs, however, the Ag has additionally responded, claiming that Bitfinex is so within the wrong.
However, it seems that the under-fire exchange doesn’t need to require any possibilities once it involves more stoking the ire of American authorities. The IEO white paper that it’ll not be creating its LEO token accessible to consumers within the United States, and says it’ll not use “means of general solicitation or general advertising” to push the sale.