Home / CRYPTOCOINS / ‘Not a White Paper’: Marketing Document Details $1 Billion Bitfinex Token Sale

‘Not a White Paper’: Marketing Document Details $1 Billion Bitfinex Token Sale

New names are emerging about a planned $1 billion token sale to be held by iFinex, the parent company of Bitfinex and Halter, two cryptocurrency companies currently being sued by the state of New York for allegedly covering up a $850 million loss in patron funds.

Released today on Twitter by known company shareholder and over-the-counter trader Zhao Dong, a 3-page “selling document” details the specifics of how the sale might ultimately take place, while noting throughout that it is not design to be legally binding.

For example, the document makes explicit that it is “not a white paper,” meaning it does not provide applied specifics including which blockchain or blockchains the new cryptocurrency for sale will trade on, or the cryptographic specifics of how its code leave enable peers to move and transfer funds.

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According to the document, the tokens are to be issued by Unus Sed Leo Reduced, a new company owned by iFinex. In total, 1 billion tokens will be issued by Unus Sed Leo Limited, each tattle on for 1 USDT, the US-dollar backed stablecoin issued by Tether.

The exchange said:

“The tokens will be sold in a private contribution without the means of general solicitation or general advertising. Any tokens that remain issued may be sold in the manner and spaces determined by the Issuer in its sole discretion.”

The cryptocurrency, to trade under the ticker symbol LEO, will enable users to meet with discounts on trading fees when swapping between cryptocurrencies on Bitfinex exchange and its two cryptocurrency-specific exchanges, EthFinex and EOSFinex.

No matter how, in a move that recalls how it issued tokens in the wake of its August 2016 hack, Bitfinex indicated the tokens last will and testament be created as a temporary measure, and that the company intends to buy back tokens as a means of ensuring customers are ultimately refunded.

At the notwithstanding, Bitfinex issued roughly $72 million in ‘BFX tokens,’ cryptocurrency that was eventually bought back based on proceeds from commerce revenues by April 2017.

This time around, IFinex and its affiliates will buy back the tokens on a monthly basis. Acquires will be made monthly, “equal to a minimum of 27 percent of the consolidated gross revenues of iFinex from the quondam month, until no more than 100 million LEO tokens remain.”

The document continues: “Repurchases will be recompense for at then-prevailing market rates. LEO tokens used to pay fees may also be burned.”

In response to allegations by the New York Attorney Indefinite’s Office (NYAG), iFinex officials maintain that the funds lost are actually being held by regulators, demand been “seized and safeguarded” from Crypto Capital, a third-party banking and payment services provider whose manifest legal issues first spurred Bitfinex to borrow funds from Tether.

Any funds recovered will be adapted to to “repurchase and burn” outstanding LEO tokens, the document says.

Notably, the document does not suggest that the company pass on not move to create its own permanent blockchain, as have other exchanges like Binance for the purpose of seeking new revenue occasions related to new cryptocurrency issuance.

A more detailed version of the history of Bitfinex and the recent allegations of the company can be found in an accounting by newsman Amy Castor.

CoinDesk reached out to representatives of Bitfinex, but did not receive an immediate reply. Zhao declined to provide further components when reached.

For more details, read the full document below:

Leo Token Slick-final 5 4 19 by CoinDesk on Scribd

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