Bitfinex’s LEO Token Flopped And Here Are 3 Reasons Why

BitFinex’s LEO Token flopped and didn’t manage to succeed as other powerhouse tokens promise to make huge returns for its investors. In the altcoin news today, we discuss three possible reasons why the token failed to deliver on its promise.

Initially, Bitfinex’s LEO token was launched in May in 2019 after the company reportedly raised $1 billion USDT and USD in a private token sale. As per the official whitepaper, the LEO token promises its holders to reduce the fees and provides further discounts on BitFinex and ETHFinex. Similarly to the BNB token, one of LEO’s most important advantages is that it carries out the token burning to increase the token’s scarcity over time.

LEO was launched on an exchange which experienced the slowest growth in 2019. This was coupled with a low trading volume. Despite the many benefits of LEO, the trading volume on Bitfinex had dried up. LEO has seen relatively low demand ever since. As binance continues to dominate the crypto space from IEOs, to DEXs, Bitfinex is currently at the 72^nd place in the rankings.

Another reason for the failure of the token is simply that other exchange tokens are more attractive. October was a terrible month for LEO as it fell under the $1 dollar price point breaking under the nominal peg on the initial token sale price. LEO’s performance was since going downhill since its peak price of $2 in July. It is currently scraping to recoup the $1 price at the time of writing.

The third reason why Bitfinex’s LEO Token flopped could be the fact that there’s nothing to keep investors away from a token like a high-profile lawsuit over market manipulation.  The legal company Roche Freedman is suing Bitfinex and Tether over the claims Tether made that all of the USDT tokens were backed by equal amounts of USD. They argue that this statement was a huge lie that gave the two entities the power to manipulate the market.

This is not news to the public however, but the rumors of Bitfinex and Tether’s shady operations have been circulating for a long time now. It still remains to be seen how the lawsuit will play out and whether Bitfienx will suffer further damage and destroy its reputation.