The UNUS SED LEO (LEO) token, native to the Bitfinex exchange, fell below the $1 dollar price, breaking under the nominal peg of the initial token sale. LEO has seen relatively low demand, and so far managed to peak at $1.99, later deflating slowly toward $1.
LEO Falls Under IEO Price for the First Time Since Token Sale
LEO is a curiosity in the crypto space, spawned after an initial exchange offering (IEO) by Bitfinex that ran until June 10. According to the claims of Bitfinex, the exchange raised $1 billion from private placements. Conveniently placed, the IEO in effect offset the $900 million debt to Tether, Inc.
Price of LEO dropped below the private sale price of $1 for the first time today. pic.twitter.com/aoRic8DUeI
— Larry Cermak (@lawmaster) October 6, 2019
Bitfinex, on its side, resorted to taking out a loan from Tether, when it lost $850 million due to an ongoing investigation against CryptoCapital.
Hence the role of LEO was to add new liquidity to the exchange, while offsetting the still locked funds. But now, with a price under $1, Bitfinex’s native token looks less confident. The asset had managed to keep an even keel at $1.04 even as all altcoins were logging double-digit losses in a recent sell-off.
This price behavior led to suggestions that LEO’s price was manipulated to keep within certain boundaries. There is also little interest in LEO trading, despite Bitfinex opening up the LEO markets to smaller traders and lowering the participation barriers.
LEO slid to $0.96 on volumes of just $9.94 million, a limited performance for a native exchange token. LEO saw its volumes pick up slightly in October, though not enough to become highly attractive.
— CrypticalMass (@CrypticalMass) October 6, 2019
Price Falls as Tether, Bitfinex Fear Lawsuit
There is one more coincidence about LEO. The price drop arrived just a few days after Bitfinex issued a statement anticipating a “mercenary”…