The UNUS SED LEO token is a utility token created for the iFinex platform, nevertheless not like different comparable tokens just like the Binance Coin or the KuCoin Shares token it was created in response to a monetary disaster for the Bitfinex change.
That monetary disaster was lack of $850 million when numerous governments seized funds from Crypto Capital Corp., a monetary companies firm that iFinex was utilizing for banking companies in 2018 after discovering issue in utilizing the normal banking system.
The UNUS SED LEO token will get its identify from the iFinex firm motto, which is similar. It derives from considered one of Aesop’s fables, ”The Sow and the Lioness”, and is Latin, which means “One, however a lion.” The fable (in brief) particulars how a sow brags about what number of youngsters she has after which asks the lioness if she solely had one little one. The lioness replies “One, however a lion.” The fable encapsulates the ethos of high quality over amount and particular person power.
UNUS SED LEO tokens had been launched in Might 2019, and there have been 1 billion created, with 66% on the Ethereum blockchain and 34% on the EOS blockchain. Bitfinex makes use of 27% of the transaction charges it collects to buy and burn the tokens, and finally will burn all of them. That’s fairly totally different from almost each different cryptocurrency in that UNUS SED LEO was created with particular plans to finally stop to exist.
With that in thoughts let’s look in additional element on the token. How is it used, the place can you purchase and retailer it, and is it even value shopping for?
UNUS SED LEO ($LEO) Origins
Bitfinex is among the oldest cryptocurrency exchanges in existence, having been fashioned in 2012. Whereas it stays one of many world’s largest crypto exchanges, its path hasn’t at all times been clean. Actually, 2018 was a particularly tough yr, and never solely as a result of popping of the crypto bubble and starting of the crypto winter.
No, the largest downside Bitfinex confronted was a lack of $850 million suffered when the shadow banking agency Crypto Capital Corp had its funds seized by plenty of international governments, together with Poland, the U.Okay., Portugal, and the U.S. As well as, on the identical time U.S. prosecutors accused the mum or dad firm iFinex of illegally transferring funds to Crypto Capital Corp. and of attempting to hide the $850 million loss by overlaying it with reserves from Tether Ltd., an organization additionally owned by iFinex.
The following controversy and destructive press clearly put iFinex, and Bitfinex, in a really unhealthy gentle within the eyes of traders. In response iFinex introduced the creation and launch of the UNUS SED LEO token, which might additionally cowl the $850 deficit in Tether funds. And in Might 2019 the UNUS SED LEO token appeared.
There have been a complete of 1 billion UNUS SED LEO tokens minted, with 660 million minted on the Ethereum blockchain and 340 million minted on the EOS blockchain. All the tokens had been bought in a Might 2019 personal sale and a June 2019 IEO on the fee of 1 USDT every, thus elevating $1 billion and overlaying the loss.
One distinction on this utility token is that it was created with plans to finally burn the entire tokens. With that in thoughts, Bitfinex makes use of 27% of its earnings to buy and burn tokens.
To be able to present full transparency Bitfinex maintains a dashboard that exhibits data relating to token purchases, burned tokens, details about transactions, and extra. It is rather attention-grabbing and informative, and you may see it in motion here.
UNUS SED LEO Utility
The UNUS SED LEO token was created with three main features in thoughts:
- replenishing the Bitfinex finances;
- increasing alternatives for service prospects;
- iFinex ecosystem growth.
It accomplishes the primary purpose merely via its sale. The opposite two features are ongoing, and like different change tokens the LEO acts as the interior utility token for the Bitfinex change, offering holders with a number of benefits when buying and selling on Bitfinex. These advantages embody the next:
- Fee charges on Bitfinex and Ethfinex for coin holders are decreased by 15%. The low cost applies to all cryptocurrency pairs, together with pairs with stablecoins. To make use of the choice, it is sufficient to have no less than one coin on the account.
- The fee for takers who retailer greater than 5000 USDT in cryptocurrency is decreased by one other 10% (complete financial savings – 25%).
- A reduction of as much as 5% in peer-to-peer lending charges. Holders obtain a zero.05% low cost which is accrued month-to-month for each 10,000 USDT held in LEO. The utmost low cost of 5% is reached when 1 million USDt in LEO is held throughout the earlier month.
- Bitfinex associates additionally obtain multipliers when considered one of their referrals holds greater than 500 USDt value of $LEO tokens throughout a month. This multiplier quantity is as follows: 500+ USDt LEO equal – a 1.1x multiplier, 5,000+ USDt LEO equal – a 1.2x multiplier, and 50,000+ USDt LEO equal – a 1.5x multiplier.
As tokens are burned the worth of the remaining tokens is predicted to extend. That enables merchants to learn not solely from the discount in buying and selling commissions, but additionally from the rise out there worth of the token itself.
The UNUS SED LEO Preliminary Change Providing
The $LEO token was launched on Bitfinex on Might 20, 2019 after a 10-day lengthy IEO that raised $1 billion by promoting the 1 billion newly minted $LEO tokens for 1 USDt every. The launch was distinctive in that iFinex made the choice to launch the token as a twin chain token. Of the 1 billion complete provide, 660 million was launched on the Ethereum blockchain and 340 million was launched on the EOS blockchain.
The advantages of a twin protocol token launch are to:
- Present enhanced flexibility and ease of use for Unus Sed Leo token holders.
- Contribute assist and assets to protocols which we’ve got recognized as extremely useful.
- Contribute to developments centered round blockchain interoperability.
- Enable for Unus Sed Leo to turn out to be an integral a part of the decentralised change house, together with via integrations with each Ethfinex and eosfinex.
It’s attainable to seamlessly convert between the 2 protocol tokens, with Bitfinex performing because the bridge. To take action, merely deposit 1 LEO-ERC20 and withdraw 1 LEO-EOS. When performed, Bitfinex alter chilly wallets/issuances on the totally different chains relying on the demand to successfully bridge the chains.
The twin protocol launch was distinctive, and there are plans for the issuance of Unus Sed Leo on the Blockstream Liquid Community. Initially Bitfinex was planning on that occurring in the summertime of 2019, nevertheless there was a delay. With USDt launching on the Blockstream Liquid Community in March 2021 we may quickly see $LEO tokens launched there as nicely, though there’s been no announcement of such from Bitfinex.
The $LEO Token
Instantly after itemizing the LEO token elevated in worth, buying and selling as much as $1.98 by June 11, 2019. That improve was partially supported by the itemizing of LEO on OKEx as merchants had been optimistic over the extra change itemizing of the brand new token.
From there the token dipped and was beneath $1 by October 2019. It remained depressed via April 2020, however then recovered to commerce again above $1 and hasn’t dipped beneath $1 since. As an alternative it steadily moved increased all through 2020 and into 2021.
By February 2021 the token was a part of the cryptocurrency rally going down on the time, which allowed it to surge to an all-time excessive of $three.92 on Might 14, 2021. Since then the worth has deflated by roughly 35% as the complete market has entered a bearish section. On June 10, 2021 the LEO token trades at $2.43 and is the 49th largest cryptocurrency with a market capitalization of virtually $2.four billion.
The token has remained remarkably secure for a cryptocurrency, and it looks as if there are a number of issues which have allowed that stability and a gentle improve within the worth of the LEO token. These embody:
Bitfinex’s reputation – Regardless of the Tether scandal, a big hack in 2016, and frequent different destructive press Bitfinex stays one of many largest and most revered cryptocurrency exchanges on the earth. That’s serving to contribute to the soundness of the token as the big buying and selling group has embraced the token as a method to decrease buying and selling prices. That dynamic may be anticipated to assist the LEO token all through its existence.
Beneficiant loyalty program – The discount in commissions, lowered borrowing prices, and advantages to Bitfinex associates have all elevated the utility of the LEO token, making it extra engaging to merchants. As time strikes on Bitfinex has promised extra bonuses for LEO holders, which may solely serve to maintain curiosity within the mission excessive.
Beneficiant burn program – By constantly burning tokens Bitfinex is lowering the provision at the same time as demand is rising concurrently. This dynamic is bound to proceed lifting the worth of LEO tokens as they turn out to be more and more scarce via the mechanism of the burn program.
The place to commerce $LEO
There is no such thing as a extra emission mechanism for the LEO token, so no mining and no staking. All the tokens have already been emitted and the entire provide is capped at 1 billion tokens. As well as, the circulating provide is steadily declining as tokens are often burned. Meaning the one strategy to purchase LEO tokens is by shopping for them on exchanges.
The Bitfinex change is the logical place to buy LEO, and never surprisingly that is the place the vast majority of buying and selling quantity within the token happens. One other excessive quantity different is the Omgfin change, a smaller centralized change positioned in Estonia.
UNUS SED LEO Wallets
As a result of the LEO token was issued on each the Ethereum and EOS blockchains you’ll don’t have any downside discovering all kinds of wallets the place you’ll be able to retailer the token simply. Nonetheless, so as to obtain all of the reductions and advantages provided by holding LEO tokens they should be held within the Bitfinex on-line pockets.
Whereas that may not be an issue for you, it does create an issue for many who don’t absolutely belief the centralized exchanges. There are at all times hacking considerations, and in terms of Bitfinex some customers stay very skeptical as a result of questions surrounding whether or not or not iFinex has all of the reserves they declare to again Tether.
The LEO token is sort of distinctive by way of why it was created, placing it out as a twin chain coin, and the truth that it’s deliberate to finally stop to exist. That mentioned, it has seen a great value historical past, and contemplating the small variety of cash burned to date it’s logical to imagine that the upward value momentum of the token will proceed.
To this point lower than 5% of the entire provide has been burned, which isn’t an enormous hit to provide. If we presume that Bitfinex stays a well-liked change, and that its customers stay fascinated about reductions to their buying and selling charges, then the regular discount in provide ought to mix with persevering with or elevated demand to place upward strain on the token value.
In fact nothing is assured. There’s at all times the potential for Bitfinex falling out of favor as an change. That might negate every thing mentioned within the paragraph above. Nonetheless, as of June 2021 there are not any indicators of that occuring.
Including some LEO to your portfolio could possibly be a great transfer for skilled crypto traders who’re prepared to do their very own due diligence on the coin. One of the best technique can be to comply with the worth development of the coin and look to purchase in once you really feel value is close to a backside. Alternatively a dollar-cost averaging technique may additionally work fairly nicely for those who consider the token will proceed making regular features in response to falling provide.
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Disclaimer: These are the author’s opinions and shouldn’t be thought of funding recommendation. Readers ought to do their very own analysis.