Blockchain Investor Analysis

UNUS SED LEO

LEO
Current Price $1.25 (+0.1%)
LEO serves as a utility token in the Bitfinex ecosystem by providing benefits, such trading discounts, to traders on the platform. The token will also be the means of transaction to purchase future services that Bitfinex plans to offer.

Our Rating:

Market

Problem that it solves

The UNUS SED LEO token was launched to solve issues created by its parent company, iFinex (Bitfinex). iFinex is accused of losing millions of dollars in a hacking scandal and subsequently covering up the loss with funds from its other subsidiary, Tether. It appears that they want to use LEO to cover the massive budget deficit within the company.

Customers

LEO functions as an internal coin on the Bitfinex exchange, which provides users certain advantages such as discounts on fees and margin trading. The LEO token will serve as a utility token for the new services that iFinex plans to launch in the future. The users of this token will mostly consist of traders who already operate on the Bitfinex exchange.

Value creation

The iFinex ecosystem has yet to be fully developed, so the LEO token has limited use cases at the moment. Holders of LEO can, however, take advantage of discounts when transacting on the Bitfinex exchange.

Market structure

The market for a token of this nature is tiny compared to tokens that have actual value outside of their own ecosystems. It's possible that iFinex could grow their services arm but that will take time.

Market size

Currently, the market for the LEO token is confined to the Bitfinex user base. Therefore, it only services a tiny market.

Regulatory risks

IFinex has the eyes of the law plastered on everything they are doing. They currently have three class action lawsuites that have been filed against them, including one from the city of New York. Although no regulatory issues have popped up involving the token LEO, governing bodies could take action it.

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Competitive Advantage

Technology/blockchain platform

The LEO token runs on both the Ethereum and EOS blockchains. Therefore, it is built on strong blockchain platforms.

Lead time advantage

iFinex was not striving for lead time advantage when they created LEO, instead they seeking to raise funds to better the company's financial situation.

Contacts and networks

iFinex was founded in 2012 in Hong Kong, and over the years they've developed a large network within the blockchain industry. Having said that, they've lost nearly credibility since their numerous scandals. So, not everyone in the community will deal with them.

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Management Team

Entrepreneurial Team

The iFinex team has taken plenty of criticism over the last few years as customers and regulatory bodies alike discovered unsavory activities by the company. However, it's team has been operating a large exchange for over eight years.

Industry/technical experience

The team certainly has the industry experience to turn the ship around. The question remains as to whether they have the human capital and business network to make it happen.

Integrity

Unfortunately, iFinex has one of the most tarnished reputations in the industry, and that reputation will undoubtedly follow their LEO token project as well.

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Token Mechanics

Token required

The LEO token is pegged as the savior for iFinex. They're looking to use it as an instrument to cover their lossses. Additionally, LEO will serve as the primary token on their Bitfinex exchange and within the ecosystem as they develop more services.

Value added

The token adds value for users of Bitfinex and future users of their expanded services. However, the entity receiving the most value from the coin is undoubtedly be iFinex.

Decentralized

UNUS SED LEO is operated by the company iFinex and, is therefore, largely the control of a central authority.

Token supply

The token supply for LEO as of writing is 999.5 million. The crucial point to remember is that iFinex plans to buy back and burn the equivalent of 27% of profit in LEO tokens.

Public exchange

U.S citizens are prohibited from purchasing LEO on public exchanges. Users outside of the U.S can find LEO on a few exchanges including Bitfinex, Gate.io, ZB.com, and more.

MVP

The LEO token exists, but as mentioned before its primary use cases exist within the iFinex ecosystem, much of which has yet to be developed.

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User Adoption

Technical difficulty

Leo will attract users who trade on the Bitfinex exchange, providing discounts on certain functions and on almost all fees. It's not technical, but getting people to switch to Bitfinex will be difficult with their current reputation.

Halo Effect

Bitfinex has lost a ton, if not all, of its halo effect. It's reputation hat taken a subtantial hit over the years.

Buzz

There was a buzz about the LEO token during and shortly after the initial exchange offering (IEO) but it has died down since.

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Overall Score

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Blockchain Investor Analysis

The UNUS SED LEO token (LEO) is targeted primarily at Bitfinex users. The exchange has an impressive global audience, so iFinex is hoping that its current users buy and utilize the LEO token to provide the company with some short term cash. The issue is that most of their customers are aware of the true purpose of LEO, so many may be hesitant to purchase the token.

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