Bitfinex has revealed plans of selling its asset LEO, which is estimated to be worth $1 billion. Although this might be seen as a bland move, leading analysts have nonETHeless warned that it might hurt Bitcoin (available on Coinbase).
$1 Billion Worth of LEO Tokens
In a report last week by NewsBTC, Dovey Wan, the founder of Primitive Ventures, indicated that Bitfinex had plans of raising over $1 billion through the offering of its branded crypto assets through an on-platform initial coin offering. A section of the crypto community took the news as a joke, stating that it was not possible for the Hong Kong-based crypto exchange to come up with such a strategy after last week’s news indicating that the exchange was in a risky financial and legal standing.
Chinese cryptocurrency investor Zhao Dong published a document that showed that the LEO plan will, however, actually be moving forward. The Block’s Larry Cermak has stated that already, $600 million of the funding has been allocated to private investors who are considered to be industry insiders including Asian venture capital firms and Bitcoin (available on Coinbase) Whales.