What is UNUS SED LEO?
UNUS SED LEO (LEO), a utility token introduced in 2019 by iFinex, the parent company of Bitfinex broker and Ethfinex and Tether platforms, serves as a means of transaction within the company’s ecosystem. LEO’s public launch followed a private sale that raised $1 billion, swiftly gaining traction in the market to become one of the world’s top 15 digital currencies. The inception of LEO stemmed from the legal challenges encountered by the stablecoin USDT and its issuer, iFinex Ltd., in 2019.
Following revelations of fund misuse to address financial strains, legal action was taken against iFinex. Previous incidents, including a notable hack resulting in the theft of 120,000 BTC, and legal disputes with the Crypto Capital platform, compounded financial worries for Bitfinex. In response to these liquidity concerns, Bitfinex opted to hold an ICO in May 2019 to introduce its proprietary exchange token, UNUS SED LEO. Bearing similarities in functionality to BNB, LEO presents numerous advantages for the Bitfinex Exchange.
How does UNUS SED LEO work?
Bitfinex aims to address several key objectives with LEO, primarily focusing on bolstering its community and leveraging the benefits of conducting transactions within the Bitfinex ecosystem. LEO offers its issuer increased control and a plethora of options to ensure the smooth operation of its exchange. Users stand to gain from expedited and cost-effective transactions.
Additionally, the project seeks to provide advantages to Bitfinex exchange users and its associated infrastructure. This includes offering preferential tariffs for trading operations on the platform and participation in exchange placements. Trading currency pairs involving the LEO token incurs a 25% reduction in commission fees. Furthermore, LEO can be utilized to attain a desired loyalty program tier for a month and trade any currency with reduced exchange fees.
Bitfinex extends benefits to its customers through its credit service, granting a discount of 0.05% on commission for every 10,000 LEO held in the account, calculated from the beginning to the end of the preceding month, with a maximum discount capped at 5%. Withdrawals made in LEO incur reduced commission fees, and customers holding over 50 million LEO in their accounts can withdraw funds without any commission.
At first glance, Bitfinex’s new cryptocurrency has the potential to emulate the success of Binance Coin for the Binance exchange.
Advantages and disadvantages of UNUS SED LEO
Advantages
The UNUS SED LEO coin has emerged as one of the most successful cryptocurrencies, notable for its innovative approach of utilizing two distinct blockchains. LEO tokens are housed simultaneously on both the EOS and Ethereum blockchains, a significant innovation in the crypto space. This setup grants users enhanced flexibility, allowing them to seamlessly convert their LEO tokens between either blockchain using Bitfinex as a bridge. This approach not only promotes interoperability between cryptocurrencies but also provides users with greater control over their assets.
Disadvantages
A vulnerability of UNUS SED LEO lies in the ongoing tarnished reputation of its parent company. Following widespread speculation regarding Tether manipulation by the exchange, it’s understandable for the crypto community to approach the company with caution. The controversy surrounding the undisclosed misuse of USDT reserves to bolster Bitfinex’s own financial position has not only incited frustration among many Bitfinex users but has also raised doubts among potential investors.
For those considering purchasing UNUS SED LEO tokens, it’s essential to stay informed about any developments regarding Bitfinex’s actions. This knowledge will enable investors to make well-informed trading decisions at the opportune moment, considering the potential impact of ongoing proceedings on the token’s value.
Another pertinent question revolves around the future success of the cryptocurrency exchange Bitfinex in comparison to other prominent exchanges such as Binance. This competition manifests in two main aspects: Bitfinex and Binance both compete for the attention of enthusiastic crypto traders, while their native tokens, BNB and LEO, vie for preference among investors who may have a preference for one token over the other.
The stronger the performance of Binance and BNB, the more likely it is to negatively impact Bitfinex and LEO. This is because investors may lean towards BNB, which could influence market sentiment towards Bitfinex and LEO. To navigate this landscape effectively, Bitfinex must strategically retain its user base and attract new traders while maximizing the unique advantages of LEO.
