Bitfinex commits a portion of revenues from its IEO platform toward LEO token burns

Exchanges • July 8, 2019, 9:43AM EDT
UPDATED: July 8, 2019, 11:09AM EDT
The Block

Cryptocurrency exchange Bitfinex has announced it is committing 27% of past and future revenues from its recently launched initial exchange offering (IEO) platform Tokinex to buy back its native LEO token. 

“Over the course of the previous 15 days we have purchased outstanding LEO for 27% of the revenues generated by the first Tokinex IEO, Ampleforth. These LEO will be added and burned,” Bitfinex said.

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LEO was launched last month after allegedly raising nearly $1 billion in tether (USDT) stablecoin and USD in a private token sale aimed at covering $850 million worth of funds locked up by Crypto Capital. Bitfinex's LEO burn mechanism aims to buy back tokens until 100% have been redeemed.

Based on LEO token burn figures, The Block last week estimated that Bitfinex generated nearly $10.4 million in revenue from trading fees. That’s, on average, $550,000 of daily revenue from trading fees.

The Tokinex platform recently completed its first IEO sale for Ampleforth project. It is slated to host its second token sale for Ultra.io project on July 16.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.

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