Crypto exchange Bitfinex on Monday announced that it spent 27 percent of the revenue generated from its first Initial Exchange Offering (IEO) ) to repurchase outstanding LEO tokens.
iFinex, the parent company of Bitfinex, committed on the whitepaper of LEO token that it will repurchase LEO token from the market equivalent to a minimum of 27 percent of its gross revenue.
“On a monthly basis, iFinex and its Affiliates will buy back LEO from the market equal to a minimum of 27% of the consolidated gross revenues of iFinex (exclusive of Ethfinex) from the previous month, until no tokens are in commercial circulation,” the whitepaper stated. “Repurchases will be made at then-prevailing market rates. LEO tokens used to pay fees may also be used to satisfy this repurchase commitment.”
According to the exchange, it has already burned 1,920,061.10 LEO tokens with a remaining supply of 998,079,938.90 tokens. It has also set up a platform to track the progress of rephrasing and burning of the tokens, making the process transparent to the public.
iFinex reportedly raised $1 billion by selling LEO tokens to private investors, all of which happened behind closed doors.
Getting on the IEO bandwagon
Coping up with the trend and demand of IEOs, Bitfinex, along with its sister ETHfinex, launched a platform called Tokinex to list crypto projects for raising funds. To date, it listed only one project, Ampleforth, which turned out to be a massive success as it raised $5 million in 11 seconds.
“Over the course of the previous 15 days we have purchased outstanding LEO for 27% of the revenues generated by the first Tokinex IEO, Ampleforth,” the exchange noted.
After the Ampleforth IEO, Tokinex is going to list its second project - token sale of Ultra.io - on July 16.
Meanwhile, Bitfinex recently repaid Tether $100 million for its outstanding loan of $700 million, which the exchange received through a line of credit earlier this year.
