After weeks of modest price decline, the crypto markets appear to be mounting a recovery, with bitcoin and altcoins across the board posting in the green. However, Bitfinex’s LEO coin dipped below $1 for the first time, constituting a negative return on its private sale price.
On Oct. 7, Bitfinex coin LEO dipped as low as $0.96 amidst a general recovery for the rest of the crypto marketplace. While each LEO was initially priced in the private sale at $1, the coin was able to climb close to $2 in mid-June.
LEO Token Price | Source: Cryptocompare
However, investors appear wary of the LEO token given its close relationship with crypto exchange Bitfinex, who is facing allegations of market manipulation and a pending lawsuit by the New York Attorney General’s Office.
Price of LEO dropped below the private sale price of $1 for the first time today. pic.twitter.com/aoRic8DUeI
— Larry Cermak (@lawmaster) October 6, 2019
On Oct. 5, both Tether and Bitfinex released similar statements condemning the “baseless” accusations being placed against the two companies for their potential role in manipulating the crypto markets. The uproar was in response to unpublished research implicating Tether, the issuer of the USDT stablecoin, and Bitfinex for inappropriately influencing bitcoin’s price.
In addition to accusations of manipulation, the LEO token has also been controversial since launching. Some analysts have speculated that the private sale for LEO, which raised $1 billion, was likely an attempt to recoup the $850 million in losses sustained by Bitfinex which started the NYOAG’s lawsuit.
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