What is UNUS SED LEO and How Does It Work?

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UNUS SED LEO, commonly referred to as LEO, is a unique utility token created by iFinex, the parent company of major cryptocurrency exchange Bitfinex. But what exactly is LEO and how does it work? In this in-depth guide, we’ll take a look at the purpose of LEO, its tokenomics, trading history and whether or not it has a viable future in the crypto space.

What is the purpose of UNUS SED LEO coin?

Unus sed leo crypto

LEO was created by iFinex, the parent company of popular cryptocurrency exchange Bitfinex, to help remedy a difficult financial situation. In April 2019, iFinex was accused of secretly using $850 million of tether (USDT) funds to cover up losses after some of its funds were seized. To address this, iFinex launched LEO through an initial exchange offering (IEO), raising $1 billion that would go toward buying back LEO tokens over time.

Specifically, iFinex committed to purchasing a minimum of 27% of its monthly profits to buy and burn LEO tokens monthly in perpetuity. This ensured LEO holders would be compensated for their investment while also strengthening iFinex’s financial position. The name ‘UNUS SED LEO’ is Latin for ‘One, but a lion’, representing the token’s role in powering the growing iFinex ecosystem.

How does UNUS SED LEO crypto work?

LEO was launched simultaneously on the Ethereum and EOS blockchains, with 64% of tokens on Ethereum and 36% on EOS. This dual-chain approach maximized liquidity and decentralization. LEO holders receive trading fee discounts on Bitfinex and Eosfinex – currently a flat 15% reduction. Discounts are also applied to withdrawal and deposit fees.

The token supply is designed to decrease over time through the buyback and burn mechanism. On a monthly basis, iFinex purchases LEO tokens on the open market equivalent to at least 27% of the gross revenues from the prior month. These tokens are permanently removed from circulation, simultaneously reducing the total supply while maintaining the token’s value.

Does UNUS SED LEO token have a future?

Unus sed leo coin future

Considering iFinex’s continued financial backing and LEO’s use across multiple iFinex platforms, the token appears positioned for the long haul. Unlike many other exchange tokens, LEO doesn’t rely on a single centralized entity. And with over half the initial supply already burned, the déflationary model seems to be succeeding in retaining the token’s baseline valuation.

As long as iFinex maintains strong trading volumes requiring the constant buyback of LEO, the tokenomics should sustain the project. Some concerns remain around regulatory pressures on iFinex. But most signs point to LEO carving out an ongoing role within its parent company’s growing ecosystem. The future remains bright assuming iFinex avoids further financial or legal issues.

When UNUS SED LEO coin launched?

LEO had its initial exchange offering from May 7th to May 13th, 2019, raising $1 billion equivalent in USDT at a price of $1 per token. One billion LEO were created total, with trading commencing on Bitfinex on May 20th, 2019 after a one week lock-up period. Since then, it has consistently ranked among the top 50 cryptocurrencies by market cap.

Is UNUS SED LEO crypto a scam?

Unus sed leo token scam

Most analysts don’t consider LEO to be an outright scam, but opinions differ. On one hand, iFinex was upfront about the buyback plan and has remained transparent regarding token burns via regular reports. LEO also provides real utility with trading fee discounts.

However, some argue iFinex’s past actions related to the 2017 hack and subsequent legal issues raises red flags. There are also concerns the company maintains too much control over the token’s value. But most see LEO as a reasonable attempt to remedy losses, not a nefarious cash grab. As long as iFinex remains solvent, LEO allows investors to benefit from trading on iFinex platforms.

Is it safe to invest in UNUS SED LEO token?

Given LEO’s performance so far and links to reputable exchanges, it can be reasonably safe as far as crypto goes – but nothing is risk-free. As with any investment, there are variables outside an individual holders’ control like regulatory changes impacting iFinex. LEO also lacks mainstream adaption risk of more proven tokens like ETH or BTC.

Diversification is wise when investing in any single company’s token. Only allocate what you can afford to lose without affecting your financial well-being.

Is UNUS SED LEO coin worth it? LEO Price 2023

Unus sed leo crypto price 2023

LEO’s current price hovers around $3.65. While down over 55% from its all-time high, LEO has effectively held its value against USD since launch via the buyback mechanism. Considering inflation, holders who bought at $1 in 2019 have maintained purchasing power.

Going forward, LEO could regain lost ground if iFinex continues expanding and token utility increases. But short term volatility remains high in crypto. Medium-term, LEO provides a unique low-risk way to gain exposure to the iFinex economy through trading discounts and the increasing scarcity generated by regular buybacks.

Those willing to hold for multiple years may find LEO worth including as a smaller percentage of a diversified portfolio, especially if acquired near current price levels. But short-term traders may find more opportunistic picks that benefit from emerging trends faster. Patience andconviction in iFinex will likely be rewarded for long term LEO investors.

In the fast-paced world of crypto, staying on top of the latest news and developments can feel impossible. Thankfully, services like EXEcrypto make getting crypto updates effortless.

Where to buy UNUS SED LEO crypto?

LEO is most conveniently purchased on cryptocurrency exchanges where it has the highest volume such as Bitfinex, OKX, and Gate.io. On these platforms, users can typically exchange LEO using BTC, ETH, USDT or fiat currencies.

LEO can also be acquired via decentralized exchanges like Uniswap if you hold ETH or another supported token. Ensure to double check trading pairs and market liquidity before making large trades. Hardware wallets like Ledger and Trezor also support LEO storage for those seeking advanced security.

How to sell UNUS SED LEO token?

Unus sed leo token

The process for selling LEO mirrors the steps for buying. First, transfer your LEO tokens to an exchange that lists the pair you wish to trade into such as USDT, ETH or BTC. Then access your exchange account via the website or app, navigate to the LEO trading markets, and input a limit sell order for your tokens.

Wait for the order to fill, then withdraw the purchased asset to your personal wallet. Certain decentralized exchanges require paying gas fees in the network’s native currency too. Be sure to review market conditions like order books and slips before trading large volumes of LEO or any cryptocurrency.

How to stake UNUS SED LEO coin?

At this time, there is no official staking program for LEO tokens. However, token holders can earn passive income from LEO through liquidity providing on decentralized exchanges like Uniswap and Polkaswap. This involves adding equal amounts of LEO and another asset like ETH to pools, earning a portion of trading fees as rewards over time.

Risks include impermanent loss if the relative prices of the pooled tokens diverge too much. With LEO’s limited use cases, staking rewards also tend to be quite modest compared to protocols focused solely on staking. But it remains an option for advanced users to generate yields from their LEO holdings.

How to mine UNUS SED LEO crypto?

Unus sed leo crypto mine

LEO is not mined like proof-of-work blockchains due to using a delegated proof-of-stake (DPoS) consensus model. There is no mining hardware or rig setup needed. Instead, those seeking to participate in LEO network security can run a validating node.

However, the technical hurdles are high and rewards minimal presently. Unless the LEO protocol expands functionality drastically, individual mining will likely never be viable. For the average user, buying LEO outright from an exchange remains the simplest means of accumulating the token. Future network or staking developments may create more involved participation options too.

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