Thursday , August 18 2022

Details of IEO Bitfinex are published. Analysts warn about a reduction in potential bitcoin prices


Bitfinex Cryptocurrency Exchange plans to raise $ 1 billion during the initial stock exchange (IEO) position to its ticket, according to white paper, which the Block has read. The final version of the document can still be changed, but analysts have already warned that the proposed campaign can adversely affect the price of Bitcoin.

According to one of the pieces of the document published by Zhao Dong, the exchange investor, a Bitfinex ticket will be released under the LEO ticker and to offer a limited group of investors to start . Dong also confirmed previous reports that Bitfinex had received verbal confirmation from investors about their intention to acquire tickets for $ 600 million, however, if the coins were not distributed in full by May 10, the campaign will be switched on. Public plane.

A white paper also notes that the ticket is issued to pay for $ 850 million, which was frozen in the accounts of the company paying Crypto Capital and because what Bitfinex started having problems with the prosecutor's office in New York t . At the same time, the exchange states that “it works with the investigation and uses the procedural norms to defrost this money” and it's a good idea. express confidence that it will be possible to return them.

LEO tickets are due to be purchased from the exchange at monthly market prices. For these purposes, Bitfinex intends to allocate at least 27% of its profits, but it also retains the right to buy the tickets within 18 months after the money is paid. defrosting.

Zhao Dong also said about Plan B: if it is not possible to return the assets frozen, the exchange will use its operating profit to pay the tickets. Based on the performance over the last two years, Bitfinex expects to buy them back within four years.

Also, in order to reimburse ticket biscuits, the exchange can be used as a result of a hacker attack in August 2016. This will happen if part of nearly 120,000 BTC can be returned.

The LEO's own ticket will allow Bitfinex users to receive discounts on commissions for trading transactions in cryptocurrency-cryptocurrency pairs, and also give them credit terms and withdraw them more favorable to them.

Despite the fact that Bitfinex plans at first glance are not directly related to the wider market, the head of Fundstrat's research department, Tom Lee, believes they can affect adversely the price of bitcoin.

“IEO for $ 1 billion is a large amount of“ new ”ticket leaks, and in the short term is likely to have a negative impact on Bitcoin and other Silver cryptocur. The market needs to absorb this volume … Unless IEO buyers are new individuals in a Silver cryptocurist, but this is unlikely, ” – wrote.

Lee also added that the miners sold bitcoins for $ 7 million every day, and IEO for $ 1 billion is actually 142 days of their activity, accumulated in one day.

As ForkLog wrote, New York State's Attorney General's Office appealed to the Supreme Court of State to refuse Bitfinex solicitors' application for the abolition of a previous court order. The ministry emphasized that the trading platform operator did not issue documents to the authorities confirming its financial stability and revealing the essence of liquidity problems.

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