What Is UNUS SED LEO Token | Detailed Review

UNUS SED LEO is an utility token that is at the heart of the iFinex ecosystem. As BitFinex raises a billion dollars in record time, the token serves as a lifeline for the network.

UNUS SED LEO is a service token from the iFinex ecosystem, of which BitFinex, EthFinex, and Tether are a part. In other words, it is a token designed for users to use for economic benefits on these platforms, similar to the BNB token on Binance. Although it is a two-protocol token compatible with Ethereum and EOS blockchains, its main feature is that it is doomed to disappear.

What Is UNUS SED LEO Token?

The LEO token was specially developed to support the BitFinex exchange. In 2017, the Tether stable coin gained popularity due to its alliance with the BitFinex exchange and distribution to other exchanges. But that same year, the New York district attorney charged BitFinex with misuse of funds held in Tether, leaving BitFinex facing an $850 million budget deficit, jeopardizing the company’s viability.

To deal with this debt, BitFinex conducted an initial coin offering (ICO) of the UNUS SED LEO token in May 2019. The token acts as a lifeline as BitFinex manages to raise a billion dollars in record time.

BitFinex’s main goal was to launch 1 billion LEO tokens at $1 each in an ICO to pay off its debt. This goal was quickly achieved, making LEO one of the top 20 coins with the highest market capitalization due to this token’s benefits to exchange users.

First of all, all token holders receive discounts of up to 15% on commissions for all transactions on the exchange. Second, token holders receive monthly discounts of 0.05% for every $10,000 in their UNUS SED LEO account. Finally, they also get up to 25% discounts on withdrawals and deposits of cryptocurrencies and fiat money on the Bitfinex platform.

Doomed to Disappear

Among the main characteristics of the token is that it is doomed to disappear. As noted in the white paper, the main purpose of creating the token was to pay off debts. Since its creation, BitFinex has used 27% of the monthly profits generated by the token to buy back tokens from users and then burn them. In other words, they promised that once the debt was paid off, all tokens created for this purpose would be burned. As emphasized in the official document, there will come a time when no tokens will remain in circulation.

Benefits for UNUS SED LEO Token Holders

Users with LEO in their account get a 15% discount when trading between cryptocurrencies, including stablecoins. If the number of available tokens exceeds 5,000, an additional 10% reduction will be applied to this value.

The reduction will be even greater for holders of a huge volume of LEO tokens exceeding 1 million USD. In addition, the maximum fee reduction will apply to users holding 21 million USDT in LEO on the platform.

Uniqueness of UNUS SED LEO

Among its features is the ability to place a token on two blockchain platforms. LEO developers chose to use an innovative two-protocol approach. As a result, UNUS SED LEO crypto was released on: Ethereum and EOS.

A Solution That Benefits

  • Increased flexibility and ease of use for token holders.
  • The selected protocols will receive support and resources.
  • The company will also contribute to developing these protocols focused on blockchain interoperability.

LEO is an integral part of the decentralized exchanges space, including integrating with Ethfinex and eosfinex.

Ethereum and Eos Token Issuance

At launch, 1 billion tokens were issued. 660 million are based on Ethereum and 340 million are based on EOS. BitFinex is the link between the two platforms, so token holders can easily convert between the two protocols.

The exchange scheme is simple: the user needs to deposit 1 LEO-ERC20 and withdraw 1 LEO-EOS or vice versa. The platform will adjust the cold wallets/issues on both blockchains so that this connection is maintained correctly.

Where to Store LEO?

The UNUS SED LEO (LEO) is an ERC-20 type token, indicating that LEO can be stored in any cryptocurrency wallet compatible with ETH and ERC-20 tokens. LEO holders can choose from a rich list of cryptocurrency wallets on the market, mobile, online, hardware, and desktop wallets.

Guarda offers the best solution for storing, buying, and selling LEO tokens. Storing your LEO tokens with the Guarda wallet provides a secure, high-level solution with convenient functionality.

Conclusion

UNUS SED LEO is one of the best examples of the potential that cryptocurrencies have. Unlike other crypto-assets, LEO’s function is not only specific but also limited in time. It is a currency destined to disappear after it is fully redeemed.

And from that perspective, it can serve as a model for issuing bonds and other financial instruments in the future, using the transparency offered by blockchain technology so that other companies can issue their tokens to raise funds.

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