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Blockchain technology is steadily becoming the future of a cashless society. As a result, more crypto projects have surfaced to solve the challenges within the traditional financial sector. One such project is UNUS SED LEO.
UNUS SED LEO (LEO) is the utility cryptocurrency used in the iFinex ecosystem. The token’s name derives from a Latin quote in one of Aesop’s fables. We won’t bore you with the entire ancient tale here. However, its moral is that quality is above quantity. And, this is what LEO’s developers aim for with this innovative project.
What makes LEO tokens so important? What are the striking features of the LEO token? This article explores the concept of the LEO token. It highlights its features, pros, and cons, and how to buy the LEO token.
LEO’s Background Story
Bitfinex created LEO as a utility token for its products. The cryptocurrency trading platform is one of the best operating enterprises in the iFinex portfolio.
IFinex decided to launch LEO tokens after the government seized most of Crypto Capital’s funds in 2019. It’s worth noting that Crypto Capital is the payment processing company that managed most of the Bitfinex transactions.
Unus Sed Leo Ltd. published the whitepaper in May 2019. In it, we discover that it is a limited liability company operating from the British Virgin Islands. Also, its purpose is to create and release its utility token.
IFinex issued 1 billion LEO tokens through an IEO (Initial Exchange Offering) in 2019. Also, it launched 660 million on the EOS blockchain and 340 million on Ethereum. The IEO lasted 10 days and raised $1 billion.
The main feature of the LEO token is that it will not exist forever. The token works on a buyback and destruction mechanism. Through it, the platform repurchases and destroys the initial and maximum supply from iFinex. Additionally, it includes a certain percentage of the company’s net profit.
The UNUS SED LEO tokens serve as discount tokens for the Bitfinex trading platform. They provide discounts on fees that the platform charges to the main account and sub-accounts. Among them are deposit and withdrawal fees.
These discounts vary depending on the status level of the account holder. Also, they rely on the number of UNUS SED LEOs the account has held in the previous month. Lastly, it builds upon the type of transactions on the Bitfinex platform.
Additionally, LEO also serves as a market token for all iFinex products. Token holders can use them to access many other products on iFinex.
Pros and Cons
As with every crypto project and its accompanying assets, UNUS SED LEO has its advantages and downsides.
Pros of UNUS SED LEO
The LEO token is the exchange token on Bitfinex. It supports the reduction of taking and borrowing fees on the trading platform. Additionally, token holders can enjoy a 25% discount on crypto withdrawal and deposit fees. Simply put, Bitfinex allows any user holding roughly 50 million LEOs to withdraw $2million without additional costs.
Furthermore, the tokens guarantee the security of funds that the issuing company generates through buybacks. More importantly, users receive the tokens in a highly secure and scalable blockchain. Lastly, the exchange security model guarantees the funds’ safety. Therefore, most token holders need to keep these tokens in the exchange to benefit from the discounts.
The tokens’ availability on the two blockchains enables investors to take advantage of the two chains. It also attracts investors from two communities to the UNUS SED platform. In comparison to Ethereum, the EOS blockchain offers faster crypto-asset transactions.
Cons of UNUS SED LEO
The project’s dashboard presents a high risk of inaccuracies for data updates. These potential errors can lead to trust problems in its business model and tokenomics. Therefore, they can affect token holders and investors waiting to buy back their token holdings.
Another issue is the token has very few long-term advantages. For instance, investors benefit only from fee discounts and buybacks.
Any possible withdrawal of these benefits without meeting investors’ satisfaction might lead to distrust in LEO token economics. As a result, token holders could stop investing since this defeats the motive of using Bitfinex.
Price manipulation is another problem with UNUS SED LEO. Even though IFinex buys back the token at the current market price, the risk of manipulation remains. This is because IFinex has a lot of control over the token and its pricing. Generally, a steep price fluctuation during buyback remains because the goal is to buy back at a lower fee.
How to Buy UNUS SED LEO
You can buy LEO tokens from many exchanges, including Bitfinex and FTX. All you need to do is create an account on the exchange. Next, you verify your email address and set up your payment methods.
Once you buy these tokens, you can either keep the token on the exchange. Alternatively, you can send them to an external wallet. Lastly, you can use these tokens within the Bitfinex exchange for discounts on services and receive several perks.
Token holders can also speculate on the token price via spot and futures trading markets on crypto exchanges.
The UNUS SED LEO coin surfaced as a reward for Bitfinex users. The token is proof that platforms can create a working relationship with users to make them financially secure. This way, users benefit from discounts while using the exchange platform risk-free.