Just as the market was starting to recover from New York Attorney General’s report on Bitfinex’s $850 million cover-up, Bitfinex decided to remedy their ordeal by issuing a $1 billion token offering. After a week of uncertainty, with the exchange’s parent company iFinex even hitting back at the NY AG, the official whitepaper for their LEO tokens has been released.

The whitepaper stated that the LEO tokens would be priced at 1 USDT. However, “other forms of consideration,” may also be accepted. A specific LEO:USDT market for peer-to-peer trading will be opened once the token sale has been completed.

A maximum sell cap of 1 billion USDT in LEO tokens has been placed by Bitfinex and this offering would be private and for sale outside the United States.

Bitfinex claimed that LEO tokens would be the epicenter of the iFinex ecosystem. The whitepaper read,

“LEO will be the utility token at the heart of the iFinex ecosystem. Token holders will experience benefits across the entire portfolio and are expected to obtain benefits from future projects, products, and services, whether or not detailed within this white paper.”

The exchange also stated that the proceeds from the sale of the LEO tokens will replenish the inner workings of the exchange, in terms of its working capital and general business expenses. Bitfinex highlighted, “capital expenditures, operating expenses, repayment of indebtedness and other recapitalization activities,” as being the sources for their revenue.

LEO tokens can be used to redeem fee reduction on either Bitfinex or EthFinex, the exchange added.

Post the announcement, several customers were interested in understanding the terms regarding the repurchasing and burning of tokens, since this token offering was seen by many as a scapegoat tactic. Bitfinex confirmed that they will buy back the tokens on a monthly basis for a price “equal to a minimum of 27% of the consolidated gross revenues of iFinex,” based on previous month’s calculations. This will carry on until no tokens are in public circulation.

Additionally, at least 95 percent of the net funds that may be retrieved from the regulatory authorities of the US, Poland and Portugal, will be “used to repurchase and burn outstanding LEO tokens within 18 months from the date of recovery.” Bitfinex also referenced its August 2016 hack, stating that 80 percent of the recovered net funds will be,

“Used to repurchase and burn outstanding LEO tokens within 18 months from the date of recovery.”

The exchange confirmed that private token sale would take place until 11 May, with the objective to sell 1 billion USDT tokens. Further, if fewer than the same are sold, the exchange will sell the remaining tokens at a time “it deems appropriate.”

The post Bitfinex officially releases LEO whitepaper; token offered for USDT to raise $1 billion appeared first on AMBCrypto.

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