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What is UNUS SED LEO Token and why has its price increased?

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UNUS SED LEO is the utility token of the iFinex ecosystem that BitFinex, EthFinex and Tether are part of. In other words, it is a token used by users to obtain economic advantages on these platforms, as is the case with the BNB token on Binance. Despite the fact that it is a dual protocol token compatible with the Ethereum and EOS blockchains, its main characteristic is that it is doomed to disappear. In fact, this possible disappearance is what has caused the price of this token to have risen 60% in the last month, reaching its historical maximum price ($8.14) just two weeks ago. At press time, the token price is $5.8 .

What is UNUS SED LEO Token

 

The LEO token was born with the aim of keeping the BitFinex exchange alive. In 2017, the stablecoin Tether begins to become popular thanks to the union with the Bitnifex exchange and its commercialization in other exchanges. However, that same year, the New York District Attorney accuses BitFinex of misusing the funds it had in Tether, causing BitFinex to face a budget deficit of 850 million dollars, compromising its viability. of the company.

Thus, with the main objective of dealing with this debt, in May 2019 BitFinex launches an Initial Coin Offering (ICO) of the UNUS SED LEO token. A token that serves as a lifeline bonus, as BitFinex manages to raise a billion dollars in record time.

 

How did the LEO token become popular?

 

BitFinex’s main goal was to launch 1 billion LEO tokens at $1 each in the ICO in order to get its debt refinanced. A goal that was quickly achieved, placing the LEO token among the 20 coins with the highest market capitalization, thanks to the advantages that this token provides for exchange users.

 

First of all, all owners of the token benefit from discounts of up to 15% on commissions for all operations within the exchange. Second, token holders receive monthly discounts of 0.05% for every 10,000 USDT in value held in the UNUS SED LEO account. And finally, they also have discounts of up to 25% on the withdrawal and deposit of cryptocurrencies and fiat money that is made within the Bitfinex platform.

 

Doomed to disappear

 

One of the main characteristics of the token is that it is doomed to disappear. As they indicate in their whitepaper, the main objective of the token was to pay off debt. Therefore, since its inception, BitFinex has been using 27% of the monthly profits generated by the token to buy back tokens from users and burn them later. In other words, they promised that once the debt was recovered, all the tokens that were created for that purpose would be burned. Thus, as the whitepaper underlines, there will come a time when there are no tokens in circulation.

 

And Why Has The Price Gone Up?

 

The price of the LEO token reached its all-time high on February 9, with a sudden rise of almost 70%. The main reason behind this spike is that a day earlier, on February 8, the US Department of Justice seized over $3.6 billion worth of bitcoin that was stolen from BitFinex through a hack in 2016.

In this way, thanks to this seizure, BitFinex released a statement stating that the token burning process will end within 18 months from the date on which it receives the money. Thus, although it is not known exactly how long it could take to complete the process, many traders have been anticipating that the shortage of supply could make the token more valuable in the long term. In fact, several analysts suggest that it is very possible that the price rises above $12 (current price: $5.8).

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