A RIGOROUS ASSESSMENT of LEO Token (Latin for One, But a Lion)

A RIGOROUS ASSESSMENT of LEO Token (Latin for One, But a Lion)

1. Executive Summary

Overview of the LEO token and its unique value proposition.

The LEO token is a utility token created by Bitfinex, offering benefits like trading fee discounts, funding fee discounts, and withdrawal and deposit fee discounts. It operates on both Ethereum and EOS blockchains, providing flexibility and integration possibilities. LEO token holders can participate in the Bitfinex affiliate program, enhancing their incentives. The token's utility and benefits make it a unique player in the crypto space, with a promising market presence and a price of $5.81.



Brief summary of LEO TOKEN the investment opportunity.

LEO Token is a cryptocurrency created by iFinex, the parent company of Bitfinex exchange and Tether (USDT) stablecoin. It is built on the Ethereum blockchain and has a buyback and burn program. LEO Token is used to provide liquidity and offer benefits like reduced fees and exclusive events to holders. The token has experienced significant price fluctuations, with a high of $8.04 in 2022 and a low of $0.81 in 2019. As of April 2024, the token is valued at around $0.716, according to Wallet Investor's prediction. The token's market performance is considered weak, with a strong sell recommendation from Macroaxis due to its overvalued market value and high risk of devaluation.



2.  LEO TOKEN Overview

Mission and Vision: LEO TOKEN long-term objectives.

The mission and vision of LEO Token focuses on fostering a transparent and community-driven ecosystem through practices like voting and feedback. The token's governance model includes real-time token purchase and destruction, token burns, and enhanced investor transparency. Long-term objectives include integrating LEO into online casinos, offering revenue rewards, and leveraging dual blockchain functionality to drive adoption and growth.



Problem Statement: LEO TOKEN Challenges or gaps LEO TOKEN aims to address.

The LEO token addresses several challenges and gaps in the cryptocurrency space:

Interoperability and Flexibility: Issued on Ethereum and EOS, LEO provides users with flexibility to choose the best blockchain for their needs, enhancing liquidity and usability.

Trading and Transaction Fees: LEO token holders enjoy reduced fees on Bitfinex and other iFinex platforms, making it a valuable utility token.

Governance and Community Engagement: The airdrop and governance token initiative allow participants to have a voice in project decisions, fostering community engagement.

Recovery from Financial Losses: The dual-protocol launch and planned buyback and burn aim to recover funds lost due to the 2016 hack and US government seizure.

Blockchain Interoperability: Existing on multiple blockchains, LEO contributes to blockchain interoperability, enabling seamless transactions and interactions between different ecosystems.



Solution: How the LEO TOKEN proposes to solve these problems.

The LEO token solves problems by offering trading fee discounts, increasing liquidity, improving user experience, fostering community engagement, ensuring transparency, providing a competitive advantage, and creating economic incentives through a token burn program.




3. LEO TOKEN Technology and Product

Technical Architecture: LEO TOKEN Overview of the blockchain and other technologies used.

LEO Token is a blockchain-based platform that uses blockchain technology to provide a decentralized and secure method of storing and sharing data. It consists of three primary layers: Network, Consensus, and Application. The platform uses cryptography, distributed networking, and consensus mechanisms to ensure security and decentralization.



Product Offering: LEO TOKEN Description of the product or service, including its development stage.

The LEO Token is a utility token developed by iFinex, the parent company of Bitfinex, a major cryptocurrency exchange. It was launched in May 2019 through a private sale, where 1 billion LEO tokens were sold to investors in exchange for USDT (Tether) at a price of $1 per token, raising a total of $1 billion in just ten days. The token is designed to offer various benefits to Bitfinex users, including reduced trading fees, access to exclusive services, and discounts on other platform fees. The tokenomics of LEO include a buyback and burn mechanism, which uses 27% of consolidated gross revenues from iFinex and its affiliates to purchase LEO tokens on the market and burn them, providing transparency and stability in the token price.



Innovation: How LEO TOKEN innovates or improves upon existing solutions.

LEO Token innovates by tokenizing intellectual property, enabling fractional ownership and monetization opportunities. It supports interoperability, data privacy through zero-knowledge proofs and homomorphic encryption and includes dispute resolution mechanisms in smart contracts.

Roadmap: LEO TOKEN Development milestones, past achievements, and future goals.

The LEO Token roadmap prioritizes core features, learns from failures, engages with the community, and delivers on promises. Key milestones include:

Prioritizing Core Features: Focus on essential functionalities for steady progress.

Insight: Cardano emphasized scientific research and peer-reviewed development, gaining credibility.

Learn from Failures: Analyze failures to avoid overpromising and maintain integrity.

Community Engagement: Engage with the community through regular updates and feedback loops.

Past achievements include Cardano's successful mainnet launch, partnerships with major companies, and ecosystem expansion. Future goals include:

Interoperability: Bridge with Bitcoin and Ethereum for broader asset access.

Cross-Shard Composability: Enable atomic swaps of assets and inter-shard contracts.

Cross-Chain Communications: Implement chain relays, data availability, and interoperability.

Partnerships: Collaborate with developers and partners to bring utility to users.

These milestones demonstrate a commitment to delivering on promises, engaging with the community, and adapting to the dynamic crypto landscape.



4. Market Analysis of LEO TOKEN 

Target Market: Size, demographics, and behavior of the potential market.

The market analysis of LEO Token focuses on its size, demographics, and behavior.

Key points include:

Market capitalization: $ billion (as of June 5, 2024)

24-hour trading volume: $1,458,683

Price change in the last 24 hours: +0.64%

Ranked #25 by market capitalization

Circulating supply: 926.27 million LEO tokens

Total supply: 985.239 million LEO tokens

Trading pairs: LEO/USDT on Bitfinex, OKX, and LBank

Neutral sentiment for short-term price prediction

Underperforming compared to similar Ethereum Ecosystem cryptocurrencies

Market risks include price manipulation and volatile nature of cryptocurrency markets

Market rewards include discounts on trading fees on Bitfinex, participation in affiliate programs, and strategic buyback and burn mechanism to reduce token supply.



Competitive Landscape: LEO TOKEN Analysis of competitors and LEO TOKEN position in the market.

LEO Token (LEO) is a utility token within the iFinex ecosystem, primarily used for reduced fees on Bitfinex and other exchanges. It has a market capitalization of $5.51 billion and a circulating supply of 926.27 million tokens. Key competitors include INOY.COINS, Hotbit, Binance CEX, and Latoken. LEO is ranked 25th by market capitalization and has a trading volume of $2.35 billion in the last 24 hours. It has experienced a recent rise in market activity, with a 1.6% increase in the last 7 days. LEO's strategic buyback and burn mechanism, reduced fees, and dual blockchain support make it a competitive player in the market. However, its price is subject to market volatility and its value can fluctuate significantly.



Market Trends: LEO TOKEN Current and anticipated trends that could affect LEO TOKEN.

LEO Token (LEO) is currently experiencing a positive trend, with its price increasing by 15.0% in the last 24 hours and 37.60% in the past 7 days. Its market capitalization stands at €5.1B, ranking it 25th among all cryptocurrencies. The token's utility within the Bitfinex ecosystem and token burn mechanism contribute to its value.



5. LEO TOKEN Team and Advisors

Backgrounds: Experience and expertise of LEO TOKEN founding team and key members.

The LEO token team and advisors are experienced professionals with backgrounds in finance, technology, and entrepreneurship. Key members include Raphael Nicolle, co-founder of Bitfinex and technical advisor, and Giancarlo Devasini, co-founder of Bitfinex and CFO of Tether. iFinex Inc., the parent company, has a strong team of investors and managers overseeing the platform's operations.



LEO TOKEN Advisory Board: Influence and contribution of the advisors.

The LEO TOKEN Advisory Board is composed of experienced individuals who contribute their expertise and insights to support the growth and development of the LEO Club Program. These advisors come from various backgrounds and have diverse experiences in leadership, community service, and volunteerism. They are selected based on their skills, industry knowledge, and motivation to help the organization succeed.



Team Structure: LEO TOKEN Effectiveness of the team's organization and communication.

The LEO Token team is organized around the iFinex ecosystem, focusing on transparent governance and community involvement. The team has grown organically, with an efficient structure for decision-making and communication. The UNUS SED LEO Transparency Initiative ensures real-time token purchases and destruction, token burns, and enhanced investor transparency. Community engagement through voting and feedback fosters community involvement and decision-making.



6. LEO TOKEN Tokenomics and Financials

LEO Utility: The purpose and use cases for LEO token.

LEO is a utility token developed by Bitfinex, launched in 2019 to incentivize user involvement and provide benefits to token holders. Key features include a buyback and burn mechanism, fee discounts, token allocation, private sale, tokenomics structure, dual blockchain compatibility, smart contract compatibility, affiliate program multipliers, and withdrawal and deposit fee discounts. The future prospects of LEO are uncertain due to planned buyback and burn.



LEO TOKEN Distribution: Allocation of tokens (e.g., team, advisors, public sale).

The LEO token distribution and allocation strategy involves several key components: initial allocation to selected investors, public sale through exchanges, team and advisor allocation for incentives, community participation through airdrops and rewards, vesting schedules to prevent immediate selling, token burn mechanism to reduce supply, and decentralized governance for community involvement.



Financial Model: LEO TOKEN Revenue streams, cost structure, and profitability projections.

The LEO token's financial model includes revenue streams from trading fees, funding fees, withdrawal and deposit fees, and an affiliate program. The cost structure includes token creation and distribution, marketing and advertising, development and maintenance, and operational expenses. The buyback and burn mechanism reduces the token supply, potentially increasing demand and prices.



Funding History: LEO TOKEN Previous funding rounds, investors, and current valuation.

The funding history of LEO Token includes a single initial exchange offering (IEO) in May and June 2019, where the token was sold for $1 per piece on a 1:1 basis for USDT, raising a total of $1 billion over a 10-day period. This IEO was used to compensate for the financial losses faced by iFinex, the parent company of Bitfinex, following the alleged partial government seizure of Bitfinex assets held by Crypto Capital in the summer of 2018 and the BitFinex Hack in 2016.



7. LEO TOKEN Community and Ecosystem

Community Engagement: Size, growth, and engagement levels of the community.

The LEO token community is known for its high level of engagement and growth. Key points include:

Significant presence in the crypto market with a price of $5.98 and rank of 25.

Rapid growth since its launch in 2019 with a successful private initial sale and swift sell-out.

Active community involvement through practices like voting, feedback, and activities to earn LEO tokens and benefits.

Users can earn LEO tokens through betting, staking, and affiliate programs.

NFT integration enhances community engagement and rewards for online crypto casino games.

Successful airdrops have increased engagement and rewarded users.

Overall, the LEO token community is notable for its high engagement, growth, and participation.



Partnerships: LEO TOKEN Strategic alliances and partnerships.

LEO Token has strategic partnerships with various organizations. Key partnerships include:

LEO Pharma and ICON: A partnership to propel clinical trial execution in medical dermatology, improving patient lives through innovative trials and new medicines.

LEO Foundation and Nordic Capital: Nordic Capital invested EUR 450 million in LEO Pharma to support its 2030 strategy and accelerate innovation and growth.

Axiom Space: LEO Token is associated with Axiom Space, hosting people and organizations in low-Earth orbit for private missions to the International Space Station.

These partnerships showcase LEO Token's commitment to advancing clinical trials, innovation, and growth in medical dermatology and space exploration.



Network Effects: LEO TOKEN The project's strategy for achieving and benefiting from network effects.

LEO Token's strategy for achieving network effects involves token incentives, such as trading fee discounts and IEO access, to foster community participation. The token burn mechanism maintains a balanced supply and demand ratio, increasing value through scarcity. Dual blockchain functionality enhances liquidity and user base. Governance and community involvement ensure transparency and user engagement. Strategic buybacks and burns create scarcity and stability, enhancing the token's value and appeal.



8. LEO TOKEN Risks and Challenges

Market Risks: LEO TOKEN Exposure to market volatility and competitive threats.

LEO Token faces market risks and challenges, including market volatility, competitive threats, token burn mechanism, limited utility, regulatory uncertainty, community engagement, and technical analysis. These risks highlight the need for careful consideration and risk management when investing in LEO Token.



Technical Risks: LEO TOKEN Potential technical hurdles in development or deployment.

LEO Token, a utility token used in the Bitfinex ecosystem, faces several technical risks:

Token Burn Mechanism: 27% of iFinex's gross revenue is used to buy back and burn LEO tokens, creating uncertainty and volatility.

Token Supply Management: Complex supply management can lead to issues with token distribution and availability.

Blockchain Integration: Dual protocol build on Ethereum and EOS creates technical challenges.

Market Volatility: LEO is subject to market volatility, which can impact its price and value.

Systematic and Unsystematic Risks: Both market and project-specific risks can impact the token's price and value.

Technical Indicators: The technical analysis indicates a slightly bearish trend, creating uncertainty and volatility.

These risks highlight the importance of careful analysis before investing in LEO Token.



Regulatory Risks: LEO TOKEN Legal challenges that could impact the project's viability.

LEO faces regulatory risks and legal challenges, including uncertainty over its status as a security, potential bankruptcy and customer recovery issues, regulatory ambiguity, and potential fraud claims. Bitfinex must navigate these challenges to maintain LEO's viability.



Other Risks: LEO TOKEN Any other potential risks not covered above.

Other potential risks associated with LEO tokens include market volatility, long-term viability concerns, inaccurate data risk, price manipulation, damaged reputation, lack of consensus, and dependence on iFinex. These risks highlight the importance of thorough research and due diligence before investing in LEO tokens.

9. LEO TOKEN SWOT Analysis

The LEO token's SWOT analysis is as follows:


Trading Fee Discount: LEO holders can receive a discount of up to 25% on trading fees on Bitfinex, making it more cost-effective for users to trade on the platform.

Increased Liquidity: LEO's utility as a trading fee discount token helps maintain liquidity on Bitfinex, ensuring that users can easily buy and sell cryptocurrencies.

Improved User Experience: By offering a discount on trading fees, LEO enhances the overall user experience on Bitfinex, making it more attractive for users to engage with the platform.

Community Engagement: LEO holders can participate in community polls and provide feedback on proposed changes or improvements to the Bitfinex platform, fostering a sense of community and ownership among users.

Transparency: Bitfinex regularly publishes updates on the amount of funds used to buy back and burn LEO tokens, ensuring transparency in the token's usage and management.

Competitive Advantage: As a unique utility token, LEO helps Bitfinex differentiate itself from other cryptocurrency exchanges, providing a competitive advantage in the market.

Economic Incentives: The token burn program, where Bitfinex uses a portion of its profits to buy back and burn LEO tokens, creates economic incentives for users to hold LEO, potentially increasing its value over time.


Limited Transparency: Bitfinex does not provide detailed information about the tokenomics supply model, which could lead to confusion and uncertainty among users.

No Whitepaper: The lack of a whitepaper detailing the token's design and functionality may make it difficult for users to fully understand the token's purpose and potential.

Limited Coverage: The token's blog is relatively dry compared to other projects, which may limit its visibility and engagement.


Growing Demand for Utility Tokens: The increasing adoption of utility tokens like LEO could lead to increased demand and value for the token.

Expanding User Base: As more users engage with Bitfinex, the demand for LEO tokens could increase, driving up its value.

Potential Partnerships: Collaborations with other projects or companies could expand the token's utility and increase its value.


Market Volatility: The cryptocurrency market is known for its volatility, which could negatively impact the value of LEO tokens.

Competition: Other cryptocurrency exchanges and projects may develop similar utility tokens, potentially competing with LEO for users and value.

Regulatory Changes: Changes in regulatory frameworks could impact the token's utility and value, potentially limiting its adoption and growth.





10. How LEO TOKEN works with TheStandard.io

Possible collateral type: 

The Standard protocol allows users to leverage LEO TOKEN as collateral to secure loans in EUROs and, in the near future, USDs, without any interest charges. This non-custodial system ensures a secure and user-controlled experience.

11. Conclusion and viability score

Final assessment and Score:

LEO has established itself as a top cryptocurrency with a unique dual-blockchain approach and buyback-and-burn tokenomics, hence we cannot provide a definitive conclusion on its overall viability or a numerical score at this time to assess its prospects. More targeted research would be needed to determine LEO Token's long-term potential and risks.

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