Bitfinex May Try to Raise $1B With Own Token Sale

According to the founding partner of Primitive Ventures Foundation, "folks are selling the allocation of its IEO in a few channels"
30 April 2019   306

Bitfinex Cryptocurrency Exchange, presumably, intends to issue its own token and raise $ 1 billion in USDT by selling it. This was announced by the founding partner of Primitive Ventures Foundation Dovey Wan.

Earlier, Bitfinex was involved in a scandal because of the prosecution of the prosecutor's office in New York in an attempt to conceal the fact of losing $ 850 million using the reserves of its affiliate Tether.

There is no other information on this issue at the moment, however, the crypto-community on Twitter is already showing considerable interest in the alleged and ambiguous step of Bitfinex.

Also on Monday Bitfinex’ed provided a copy of the document, allegedly an agreement between Bitfinex and Tether, to provide the first loan of $ 900 million dated March 19, 2019. Bitfinex’ed pays attention to the issue of USDT from March 19 to April 25, when stablecoin's capitalization increased by $ 853 million, which, according to some, may be evidence of unsecured emissions.

Zirui published a message allegedly written by Bitfinex investor Zhao Dong, who previously disclosed insider information. 

 

Bitfinex Shareholder to Start Pre-Orders for IEO

It should be noted there's no official whitepaper for the token and the fact of IEO wasn't confirmed by the operator of trading platform
06 May 2019   289

The Chinese platform RenRenBit, which is an intermediary between cryptocurrency lenders and borrowers, has begun to accept preliminary applications for participation in the public stage of IEO of the Bitcoin exchange Bitfinex. RenRenBit is part of the DGroup company, which is owned by a major Bitfinex shareholder, Zhao Dong, CoinDesk reports.

Note that the operator of the trading platform iFinex Inc. has not yet published the official white paper for its token, and has not even confirmed the fact of IEO itself. Dong is the main source of information on tokensale for $ 1 billion and it was he who distributed the marketing documentation of the LEO token through Weibo, although some top managers from Bitfinex have already mentioned the coin on Twitter.

Retail investors who have undergone a KYC procedure can already commit to invest up to $ 1,000 in USDT equivalent at the IEO's public stage. However, according to the mentioned marketing documentation, if the tokens are sold out to accredited investors by May 10, the tokensale will end in a closed format. As of May 4, the exchange allegedly received a verbal commitment of $ 600 million.

It is worth adding that the fake white paper of Bitfinex token has already appeared on the web, whose authors use the uncertainty around the alleged campaign and the lack of official statements to mislead gullible users. The official white paper has not been released.

CoinMarketCap, a popular analytical resource, meanwhile, excluded Bitfinex quotes from calculations of the average value of digital assets, since they significantly exceed those of other trading platforms.

Earlier, New York State Attorney General Letitia James asked the state Supreme Court to uphold the order for Bitfinex, which does not allow her to renew the credit line from Tether Limited. She warned the court about the high risks for users of the platform and USDT holders.

However, a week ago, Tether Limited's chief lawyer Stuart Hogner stressed that there are no risks for users, although steylcoin is secured only by 74%.

So, Bitfinex could already receive about $ 750 million from the USDT issuer's reserves to ensure liquidity after the fiat funds of the exchange's operator were blocked in the accounts of the Panamanian processing Crypto Capital Corp. in Poland, Portugal, the UK and the USA.