Cryptocurrency exchange Bitfinex has released the official white paper for its $1 billion exchange token sale, revealing it will also launch a dedicated platform for projects to raise funds via similar initial exchange offerings (IEOs) starting from next month.
Bitfinex published the white paper Wednesday, confirming recent reports that it’s aiming to raise up to $1 billion worth in the tether (USDT) stablecoin by selling its own exchange token, dubbed LEO, in a private sale.
However, the white paper indicated the private sale will end on May 11, not the previously reported May 10. Further, it appears Bitfinex may not necessarily conduct a public sale if it fails to raise $1 billion during the private phase.
“If fewer than 1 billion USDT tokens are sold by private token sale, the Issuer may thereafter sell remaining tokens at times and in a manner it deems appropriate in its sole discretion, consistent with applicable law,” the white paper reads.
Bitfinex said it will launch its first IEO allowing other projects to raise funds in June. “Qualified” persons with a Bitfinex or Ethfinex account may contribute to pre-vetted token sales directly from their personal exchange wallet.
The paper states:
“Projects that successfully raise capital on this platform are subsequently listed on the two exchanges, as permitted by applicable law, and token sale participants receive their subscribed tokens in their exchange wallets. The first token sale is scheduled for June 2019.”
Further, Bitfinex claimed it will also be launching a licensed and regulated security token exchange, which will not be available to U.S. customers.
Bitfinex’s own LEO token will be issued by Unus Sed Leo Limited, a new company owned by Bitfinex’s parent company iFinex, as previously stated in a marketing document.
Bitfinex and Tether Ltd., the stablecoin issuer affiliated with the exchange, are currently being sued by the state of New York for allegedly covering up a $850 million loss in customer funds. Bitfinex later claimed that the funds had been “seized” by various authorities and that it was working to retrieve the funds.
Elsewhere in the white paper, the exchange also lists forthcoming projects, including a derivatives product. “The product will have USDT-based collateral (unavailable in the rest of the market), up to 100x leverage and isolated margin for individualized risk level,” it says.
Bitfinex image via Shutterstock