Hong-Kong-based crypto exchange Bitfinex reportedly plans to issue its own cryptocurrency and to celebrate an IEO to attract $1B in Tether (USDT).
According to Dovey Wan, founding partner of Primitive Ventures, this information has been confirmed by of one of BFX equity share holders:
"Folks are selling the allocation of its IEO in a few channels, i was super skeptical at first but later confirmed by of one of BFX equity share holders."
New York Attorney General’s office accused Bitfinex of using Tether tokens to cover up a $850M loss. Wan said:
"I just don’t see how this can be sustainable, it won’t make Tether fully-backed again unless they distribute profit/new fund raised back to Tether reserve. BFX has already securitized + tokenized its future cash flow for their last hack, this is another layer of leverage on top..."
Shortly afterwards, Twitter user Zirui posted a tweet, allegedly written by Bitfinex investor Zhao Dong, who has revealed other similar information in the past. The message says:
"According to @zhaodong1982 there’s a high possibility that @bitfinex is going to do an IEO, and some big whales already reserved $300m of the allocations in #USDT."
The exchange has not made any official statement so far.
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