LEO LEO Token

LEO Token Use Cases

The LEO Token is a utility token developed by iFinex, primarily used on the Bitfinex exchange and other platforms managed by its parent company. Here are the key use cases:

• Trading Fee Discounts: LEO holders receive reduced taker and lending fees on the Bitfinex exchange. All tiers of token fees are reduced by 15% for crypto-to-crypto pairs, and an additional 10% reduction is available for those holding more than 5,000 USDT equivalent in LEO.

• Funding Fee Discounts: Peer-to-peer (P2P) financial lenders receive a 0.05% discount on P2P lending fees for every 10,000 USDT held in LEO tokens, capped at 5% when 1 million USDT in LEO is held.

• Withdrawal and Deposit Fee Discounts: LEO holders can enjoy up to 25% crypto withdrawal and deposit fee discounts. Users holding more than 50 million USDT worth of LEO tokens can withdraw up to 2 million USD without incurring additional fees.

• Dual Blockchain Compatibility: LEO tokens are issued on both Ethereum and EOS blockchains, providing flexibility and ease of use for token holders. This allows for cross-chain conversions and greater choice for developers and users.

• Token Burn and Buyback: iFinex uses 27% of its consolidated gross revenues to purchase LEO tokens on the market and burn them, aiming to eventually remove all tokens from circulation.

Benefits of LEO Token

• Trading Fee Discounts: LEO Token holders receive reduced taker and lending fees on the Bitfinex exchange, with discounts ranging from 15% to 25% on crypto-to-crypto pairs and additional reductions for holding more than 5,000 USDT equivalent in LEO.
• Funding Fee Discounts: Peer-to-peer financial lenders receive a 0.05% discount on P2P lending fees for every 10,000 USDT held in LEO tokens, capped at 5% when 1 million USDT in LEO is held.
• Withdrawal and Deposit Fee Discounts: LEO holders can enjoy up to 25% crypto withdrawal and deposit fee discounts, with users holding more than 50 million USDT worth of LEO tokens able to withdraw up to 2 million USD without incurring additional fees.
• Dual Blockchain Compatibility: LEO tokens are issued on both Ethereum and EOS blockchains, providing flexibility and ease of use for token holders, and enabling cross-chain conversions and greater choice for developers and users.
• Token Burn Mechanism: 27% of iFinex's gross revenue is used to buy back and burn LEO tokens, aiming to eventually remove all tokens from circulation.

Drawbacks of LEO Token

• Inaccurate Data Risk: The dashboard could include inaccurate data, leading to trust issues in the company’s business model or tokenomics, and negatively affecting LEO token holders and investors waiting for a buy-back.
• Price Manipulation: The issuing company has a high degree of control over the LEO token and its pricing, which could prevent significant price increases or decreases to enable a buyback at a rate close to the fundraising price.
• Limited Long-Term Viability: LEO Token is not suitable for long-term investment as it is designed to be burned and eventually removed from circulation, which may not provide significant price increases to aid the issuing company in buying it back.
• Dependence on iFinex: The success of LEO Token is heavily dependent on the performance and reputation of iFinex and its platforms, which could be affected by past legal and financial issues.

Founders of LEO Token

The founders of LEO Token include key members from iFinex, the parent company of Bitfinex. Notable founders are:

• Jean-Louis van der Velde: A key figure in the creation of LEO Token.
• Raphael Nicolle: Co-founder of Bitfinex and technical advisor.
• Giancarlo Devasini: Co-founder of Bitfinex and CFO of Tether.

Investors in LEO Token

• Private Sale: The LEO Token was initially sold through a private offering to selected investors, raising $1 billion.
• Key Investors: Notable investors include SNZ Holding and Ventures Capital, participating in the Initial Coin Offering (ICO) stage.
• Investment Details: The private sale involved the issuance of 1 billion tokens at an initial price of 1 USDT per LEO.

Halal Status of LEO Token

• Halal Status: No
• Reason: LEO Token is primarily used for fee discounts within the Bitfinex ecosystem, which includes lending activities that may involve interest (riba), making it non-compliant with Shariah principles. The token's utility is closely tied to the exchange's operations, which include interest-based lending, thus raising concerns from a halal perspective.