Bitfinex IEO – Victory from the Jaws of Defeat?
Those of you who have followed the unfolding Bitfinex/Tether saga will be aware of the platform’s plans to execute the largest IEO (and fundraiser) in cryptocurrency history. On 8th May, 2019’ Bitfinex officially announced plans to issue and sell 1 billion exchange tokens at 1 USDT each in order to raise the necessary funds to cover their accounting shortfall; a shortfall as a result of $850 million in reportedly frozen accounts controlled by Crypto Capital.
The rapidly unfolding Tether saga threatened to mortally wound company, as well as creating a potential ‘Tether bank run’ for the partially-backed deposits.
Incredibly, the company was able to close its token sale in 10 days, raising nearly $1 billion from sales to wealthy private investors. According to insiders, the firm had only planned to open the sale to the public if there was any allocation of tokens left over.
In a statement to the press, Ardoino postulates that:
‘Private companies, giants in our industry and outside, made investments for >100m each. A legion of inside and outside users made investments for >1m each.”
Moreover, the CTO believes that Bitfinex was able to fundraise so effectively because private investors see Bitfinex as an integral asset to the cryptocurrency ecosystem, and ‘… want us keep fighting for the industry whole.’
Potential Public Sale/Bonanza
Despite the runaway success of their token sale, ‘finex’s CTO hinted at a small number of tokens left that might be offered in a public sale.
‘There is a small allocation left and we just prefer to share to small investors until there is time,” he said. “We have a request from few big buyers to buy the few millions left once we close it. But we believed it’s fairer to give the opportunity to a larger audience.’
If this turns out to be accurate, expect this IEO to make Binance’s Launchpad records to be well and truly broken.