Bitfinex's parent company has received $1 billion in hard and soft commitments for its exchange token sale, according to a shareholder involved in the process.
Dong Zhao, founder of DGroup and an over-the-counter trader in China who owns equity in Bitfinex, said in a WeChat post on Thursday that "There's a high possibility Bitfinex will not conduct a public sale" for its token offering called LEO. Zhao told CoinDesk that the exchange has received both hard and soft commitments of $1 billion worth of USDT, the U.S. dollar-pegged cryptocurrency issued by Tether, a company that shares owners and management with Bitfinex.
It does not mean Bitfinex has successfully raised all the intended amount.
If any of these investors withdraw in the end, the remaining tokens will be issued to others on a first come, first serve basis, Zhao said.
Zhao said his firm has already invested in the LEO token with a hard commitment but declined to share how much.
It's not yet clear at this stage how much in hard commitments Bitfinex has received.
Zhao said the hard commitments include $20 million from users of his crypto-lending application Renrenbit.
News of the commitments comes just a day after Bitfinex released an official white paper for the $1 billion token sale.
Though previous reports indicated there could be a public sale after the private phase ends if it's not yet fully raised, Bitfinex was vague about this in the white paper.
"If fewer than 1 billion USDT tokens are sold by private token sale, the Issuer may thereafter sell remaining tokens at times and in a manner it deems appropriate in its sole discretion, consistent with applicable law," the white paper reads.
Bitfinex Token Sale Has Lined Up $1 Billion in Commitments, Shareholder Says
gepubliceerd op May 9, 2019
by Coindesk | gepubliceerd op Coinage
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