Easy way to Buy UNUS SED LEO(LEO) Online with Wigwam crypto app

UNUS SED LEO (LEO) token review

UNUS SED LEO (LEO) is a utility token created by iFinex Inc. The token was launched in May 2019 to replace the funds lost during an exploit of the Bitfinex Centralized Exchange where $850M was seized from the exchange, affecting its reputation. The token has three key purposes: to replace the lost funds, create possibilities for customers of the Bitfinex exchange, and develop the iFinex ecosystem.  

The LEO token works on a dual blockchain system as it is both an ERC-20 and an EOS token, and has 64% of the token supply on the Ethereum blockchain and 36% on the EOS blockchain. This double compatibility enhances flexibility and interoperability for token holders, benefiting two separate communities and ecosystems. It is worth mentioning that using the token within the iFinex ecosystem provides diverse advantages, such as reduced fees and exclusive service access.

About

The UNUS SED LEO (LEO) token was launched by iFinex Inc, a Hong Kong-based company founded in 2012 which is also the creator of Bitfinex Centralized Exchange, EthFinex, and Tether stablecoin. Bitfinex initially started as a Peer-to-Peer margin lending platform for Bitcoin. Now, the exchange offers many other financial services such as cryptocurrency trading, P2P margin trading, P2P margin lending, and OTC services.

It is worth mentioning that inFinex Inc. has been involved in many controversies and legal issues that include a class action lawsuit against Tether and Bitfinex which was dismissed, the company also has been involved in lobbying as it spent a whopping total of $760,000 on lobbying in 2023. 

LEO Token Use Cases

The LEO token has many use cases within the Bitfinex Exchange ecosystem and beyond:

Governance: LEO tokens offer transparent democratic governance, where token holders get involved in the decision-making by voting and feedback.

Discounts and Benefits on Bitfinex Exchange: Holding an LEO token can offer you a 25% fee discount on crypto withdrawal and deposit on the Bitfinex Exchange, and many other benefits as the token is intended to support the reduction of taker and lending fees for use of trading products and services offered by its parent company iFinex.

Trading Discounts: Depending on the amount of LEO tokens a user holds, they can get discounts on the trading fees on the BitfineX Exchange.

Lending Discounts: LEO token holders get their lending fees reduced on Bitfinex, which leads to a lower cost of borrowing cryptocurrencies.

Access to Exclusive services: Holding LEO tokens gives special access to users as Bitfinex offers exclusive services to such users.

Initial Exchange Offerings (IEOs): LEO tokens also allow users to participate in the Initial Exchange Offerings (IEOs) on Bitfinex, where users can access new cryptocurrency project’s tokens at an early stage.

It is also worth mentioning that the LEO token provides Bitfinex users with an extra layer of security through the Unus Sed Leo (USL). Through USL, LEO Token holders can decrease or eliminate trading fees on affiliated platforms and services.

Economic Value

The LEO token was launched in May 2019, following a $1B Initial Exchange Offering (IEO) with a max supply of 985.24M out of which 927.68M LEO are in circulation. The token was initially introduced to recover the funds lost during the 2018 Crypto Capital incident, where $850M was seized from Bitfinex. The funds raised by selling LEO tokens were intended to cover the debt and ensure Bitfinex’s working.

The tokens utilize a buyback and destruction mechanism, where Bitfinex repurchases and burns existing LEO tokens from the iFinex with the addition of a certain percentage from the company’s net profit, which reduces the circulating supply and increases the value of the remaining tokens. 

Challenges

The LEO token is facing several challenges such as

Lack of utility: Although Bitfinex claims LEO as its utility token, it doesn’t offer much other than discounts and benefits to its holders. Meanwhile, many crypto tokens offer more diverse applications.

Technical Complexity: LEO tokens are being built on both the Ethereum and EOS blockchains, which means that it has to manage two separate sets of smart contracts, token balances, and integrations with different wallets and exchanges adding a layer of technical complexity.

Uncertain Future Prospects: LEO utilizes a buyback and burn mechanism to control its value but it's unclear what will happen after all LEO tokens in circulation have been bought back and burned. This also limits LEO’s lifespan, making it less attractive for long-term investors.