Shareholder reveals Bitfinex has secured the $1 billion for its token sale

09 May, 2019
by Richard Allen
Update
Shareholder reveals Bitfinex has secured the $1 billion for its token sale

According to a shareholder close to the matter, Bitfinex’s parent company, iFinex, has received the $1 billion it needed in hard and soft commitments for the launch of its exchange token sale, CoinDesk reports.

Dong Zhao, DGroup founder and trader who owns equity in Bitfinex, said in a WChat post on Thursday that “there’s a high possibility Bitfinex will not conduct a public sale” for its upcoming token offering, LEO.

According to Zhao, the exchange has received hard and soft commitments of $1 billion worth of Tether (USDT), a company that shares its leadership with Bitfinex.

Soft commitments refer to those investors who have yet to lock in their USDT for LEO and who still have the option of backing out of the deal. This means that Bitfinex hasn’t necessarily reached its $1 billion benchmark. However, Zhao states that if any of the investors pull out, the remaining tokens will be issued on a first come, first serve basis.

As Chepicap reported yesterday, Bitfinex released the whitepaper for LEO which confirmed reports that Bitfinex was looking at raising $1 billion worth of Tether through the selling of LEO, its own exchange token, in a private sale.

Zhao confirmed with CoinDesk that his company has already invested in the LEO token with a hard commitment but declined to reveal how much the investment was worth. Additionally, just how much has been secured through hard commitments remains unknown, but Zhao revealed that hard commitments include $20 million from users of his crypto-lending application, Renrenbit.

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

Chepicap is now LIVE in Blockfolio! This is how you receive our latest news in your portfolio tracker!  

Read more about: Bitfinex

Poll

Have you ever traded on Bitfinex?

(46 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage