Bitfinex, a controversial cryptocurrency exchange that claims to be the largest and most advanced bitcoin trading venue, has announced the commencement of its LEO token buyback program. The exchange says it has successfully used 27 percent of the revenue generated from the sale of Ampleforth tokens on Tokinex, its initial exchange offering (IEO) platform to purchase outstanding LEO tokens, according to a blog post on July 8, 2019.
Bitfinex Keeps Its Promise
As stated in its blog post, Bitfinex, a Hong Kong-based cryptocurrency exchange registered in the British Virgin Islands, has launched its LEO token buyback program.
As reported by BTCManager earlier in May 2019, Bitfinex created its LEO native altcoin in a bid to raise $1 billion to cover $850 million worth of funds allegedly frozen by its payment processor, Crypto Capital.
And on May 21, 2019, the exchange and its partners unveiled Tokinex, an IEO platform that the former says will allow verified users to invest in “carefully curated” token sales from credible crypto projects.
At the time, Bitfinex and its partners made it clear in the LEO whitepaper that they’ll buy back 27 percent of the altcoin on a monthly basis until the entire tokens are no longer in commercial circulation.
“On a monthly basis, iFinex and its affiliates will buy back LEO from the market equal to a minimum of 27 percent of the consolidated gross revenues of iFinex from the previous month, until no tokens are in commercial circulation.”
Bitfinex Buy Back LEO with Ampleforth Proceeds
In June 2019 Bitfinex saw the successful completion of the Ampleforth (AMPL) token sale on Tokinex.
Ampleforth claims to be a smart commodity virtual currency with a unique elastic supply protocol.
The project set a hard cap target of $4,900,000 for its public sale and reportedly reached its goal within just 11 seconds of its IEO.
Now, the Bitfinex team has revealed that in the past 15 days, it has used 27 percent of the revenue realized from the Ampleforth IEO to purchase LEO tokens and the coins will now be burned accordingly.
The exchange says it plans to implement more trading fee benefits for LEO token holders on its platform in the coming weeks.
The team has also declared that Ultra.io token sale will go live on Tokinex on July 16, 2019.