Bitfinex Shareholder Starts Accepting Pre-Orders for Exchange's Token Sale

Zhao Dong, a Bitfinex shareholder and a crypto billionaire that predicted bitcoin will remain below $6,000 for most of 2019, has recently started accepting pre-orders for Bitfinex’s upcoming token sale through his crypto-lending application Renrenbit.

According to CoinDesk, Zhao has started taking in pre-orders from users who want to participate in the public phase of the cryptocurrency exchange’s upcoming $1 billion token sale, even before iFinex, Bitfinex’s parent company, published an official white paper for it.

Per the news outlet Zhao has claimed Bitfinex will be listing the exchange token, LEO, for trading “in about a week” after the token sale has ended. Bitfinex and iFinex, he added, won’t be holding any LEO tokens.

Rerenbit’s official Telegram channel details that retail investors who’ve completed know-your-customer (KYC) checks through the lending application may start investing up to $1,000 worth of USDT tokens into the token sale. Those who have over $1 million worth of USDT on the app won’t have a maximum pre-order commitment limit, as they’re considered accredited investors.

Zhao, according to reports, is the person who suggested Bitfinex conduct a token offering to solve its $850 million issue, that saw the New York Attorney General’s Office file a lawsuit against it.

According to documents the crypto exchange’s shareholders shared on social media, Bitfinex’s LEO token offering aims to raise $1 billion via a private sale that’ll end on May 10. If the amount hasn’t been raised then, a public sale will take place.

Currently, it isn’t clear when the public sale will occur, if it does happen. As CryptoGlobe covered Zhao has late last month revealed he isn’t concerned about the fraud allegations both Bitfinex and Tether were hit with.

This, as he claims the exchange’s chief financial officer Giancarlo Devasini assured him it is a temporary situation, and that the exchange needs a “few weeks” to unfreeze the $850 million it has ‘stuck’ with a third-party payments processor called Crypto Capital. As covered, Crypto Capital claims the funds were seized by government authorities in various countries.