Unus Sed Leo (LEO): a utility token of the iFinex ecosystem
Unus Sed Leo (LEO) is a utility token that supports the ecosystem of iFinex, a Hong Kong-based corporation registered in the British Virgin Islands. The token was launched in 2019 on two blockchains simultaneously – Ethereum (64% of coins) and EOS (36%).
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LEO stands out for its clear utility, as it is used to cover the deficit of crypto exchange Bitfinex (one of the main iFinex projects). It also helps to reduce the expenses of platform users. For instance, Unus Sed Leo token holders enjoy a 15% discount on cryptocurrency trading fees.
Moreover, those who own the token can take advantage of perks and privileges when utilizing various other iFinex services, including Ethfinex Trustless, Eosfinex, Dazaar, and several others.
Bitfinex's Unus Sed Leo (LEO) Token Section on Their Website
The history of LEO
In 2018, Bitfinex suffered a loss of $850 million due to the collapse of Crypto Capital, a payment services provider that was utilized by the cryptocurrency exchange. The governments of several countries, including the United States and the United Kingdom, accused Crypto Capital of engaging in money laundering and subsequently confiscated its funds. According to the US Attorney's Office, iFinex attempted to recover the losses it faced due to its association with the payment processor by tapping into the reserves of Tether (USDT), one of its other subsidiaries.
In an effort to regain its reputation and compensate for the financial losses of its customers, Bitfinex's parent company devised a unique tokenomics model, which led to the creation of the LEO token. Then, iFinex carried out a private sale through an initial exchange offering (IEO), aimed at attracting interested investors.
LEO Tokenomics
The LEO token has a unique feature wherein, at a certain point, there will be no LEO coins left in the market. This is tied to iFinex's plan to compensate for losses through the issuance of this asset.
Unus Sed Leo has a limited lifespan, as iFinex has implemented a burning mechanism in the token's smart contract. This mechanism remains in operation until the circulating supply of tokens is depleted. Each month, iFinex buys back LEO tokens for at least 27% of its income from the previous 30 days, and subsequently burns them.
Infographic of the number of tokens burned per day. Source — Bitfinex
Unus Sed Leo was initially offered for $1 per token, with a total of 1 billion tokens sold. At the time of writing, LEO tokens are priced at $3.38. The token's market capitalization stands at $3.2 billion, positioning it as the 22nd cryptocurrency on the CoinMarketCap list. As of February 2023, there are still 953 million LEO tokens in circulation.
Why Unus Sed Leo?
The name of the token, “Unus Sed Leo,” derives from Latin and translates to “one, but a lion.” It references Aesop's fable in which a pig boasts about his piglets to a lioness and asks how many cubs she has. The lioness simply replies, “Unus sed leo.”
The origin of the token's name may indicate that creators may intend to position it in opposition to the vast number of useless and cheap tokens flooding the market. It could signify an ideology of valuing quality over quantity. Additionally, the phrase serves as a motto for the iFinex corporation.
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