New details are emerging about a planned $1 billion token sale to be held by iFinex, the parent company of Bitfinex and Tether, two cryptocurrency companies currently being sued by the state of New York for allegedly covering up a $850 million loss in customer funds.
The document makes explicit that it is "Not a white paper," meaning it does not provide technical specifics including which blockchain or blockchains the new cryptocurrency for sale will trade on, or the cryptographic specifics of how its code will enable peers to move and transfer funds.
According to the document, the tokens are to be issued by Unus Sed Leo Limited, a new company owned by iFinex.
In total, 1 billion tokens will be issued by Unus Sed Leo Limited, each selling for 1 USDT, the US-dollar backed stablecoin issued by Tether.
"The tokens will be sold in a private offering without the means of general solicitation or general advertising. Any tokens that remain issued may be sold in the manner and times determined by the Issuer in its sole discretion."
In a move that recalls how it issued tokens in the wake of its August 2016 hack, Bitfinex indicated the tokens will be created as a temporary measure, and that the company intends to buy back tokens as a means of ensuring customers are ultimately refunded.
At the time, Bitfinex issued roughly $72 million in 'BFX tokens,' cryptocurrency that was eventually bought back based on proceeds from exchange revenues by April 2017.
Purchases will be made monthly, "Equal to a minimum of 27 percent of the consolidated gross revenues of iFinex from the previous month, until no more than 100 million LEO tokens remain."
The document continues: "Repurchases will be made at then-prevailing market rates. LEO tokens used to pay fees may also be burned."
Any funds recovered will be used to "Repurchase and burn" outstanding LEO tokens, the document says.
'Not a White Paper': Marketing Document Details $1 Billion Bitfinex Token Sale
gepubliceerd op May 4, 2019
by Coindesk | gepubliceerd op Coinage
Coinage
Vermeld in dit artikel
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.