UNUS SED LEO (LEO) is one of many utility tokens they design to monetize a tech company and its platforms.
iFinex Inc. created UNUS SED LEO to provide liquidity to its Bitfinex trading platform. To that end, iFinex launched UNUS SED LEO with $1 billion in exchange and an initial budget deficit of $850 million.
iFinex leveraged its platform by listing the LEO token on Bitfinex on 20 May 2019. LEO has a number of interesting features including the ability to burn coins and redemption at the current market price.
Interestingly, Crypto Info claims iFinex tokens at a price equivalent to 27% of the company’s. Hence, you can think of UNUS SED LEO as similar to a high-dividend stock.
Features of UNUS SED LEO (LEO)
They gave the LEO Token a few fascinating features including some good benefits for owners. Notably, iFinex claims it will reduce Bitfinex fees by 15% on LEO pairs.
In addition, iFinex promises a 0.05% discount for every $10,000 worth of UNUS SED LEO you buy with Tether (USDT). Tether is the popular US-Dollar stablecoin created by iFinex. There is also a maximum discount of 5%.
Hence, UNUS SED LEO is designed for trading, and financial services. Moreover, they design LEO for large scale use. In particular, traders with over $50 million worth of LEO can withdraw up to $2 million per months without paying fees. iFinex offers discounts on additional commissions for withdrawals over $2 million.
Bitfinex is an exchange that claims to offer the world’s most liquid cryptocurrency order book. Notably, Bitfinex claims to offer margin trading with five times leverage and margin funding to facilitate trades. They design UNUS SED LEO to tap Bitfinex’s liquidity and trading capabilities.
Is UNUS SED LEO a good Cryptocurrency?
Coinmarketcap listed UNUS SED LEO (LEO) as the 12th most popular cryptocurrency on 10 April 2020.
In detail, the LEO Token had a Coin Price of $1.02, a $1.02 billion Market Capitalization, and a 24-Hour Market Volume of $9.567 million on that day. CoinMarketCap based those figures on a Circulating Supply of 999.499 million LEO.
I think LEO is vulnerable to inflation because it has no Maximum Supply. Therefore, there are no limits on the price LEO can rise to.
Additionally, LEO is an Ethereum based cryptocurrency. They have built over 500 cryptocurrency projects on the Ethereum (ETH) blockchain, Invest in Blockchain estimates. The Ethereum projects include the ERC20, ERC233, and ERC777 tokens.
Will Ethereum’s Limitations Doom LEO?
ERC means Ethereum Request for Comment. Hence, you can convert one Ethereum-based token into another.
The Ethereum blockchain is popular because you can build and operate Dapps (decentralized applications) called smart contacts on it. A Dapp is a digital robot that can perform a function. For example, a stablecoin uses a Dapp to make purchases in fiat currency.
However, Ethereum Tokens are not as versatile as some people think. Ethereum is not scalable because its sharding capabilities were not launched. The lack of scalability makes Ethereum slow.
Coindesk estimates, Ethereum can only process 15 transactions per second (TPS). In contrast, Visa claims its platform can process 45,000 TPS.
Hence, an Ethereum platform could crash if it tries to process over 15 transactions at once. Therefore, Ethereum’s limitations could limit LEO’s value and capabilities.
What is UNUS SED LEO anyway?
I consider UNUS SED LEO (LEO) an effort to monetize or securitize a financial technology (Fintech) company iFinex and its products. Thus, you invest in iFinex when you buy a LEO token.
Notably, iFinex launched iFinex Financial Technologies Limited a company that will own and market iFinex’s products. However, investing in iFinex is difficult without UNUS SED LEO.
Hence, if you are looking for an interesting investment in cryptocurrency and blockahin technology UNUS SED LEO is worth investigating. However, I consider UNUS SEDO LEO a risky technology investment.
Therefore, only those who think there will be a massive cryptocurrency and blockchain boom need to consider UNUS SED LEO. If you are skeptical of blockchain you need to invest LEO because it is an investment in blockchain.
Originally published at https://marketmadhouse.com on April 10, 2020.