Facebook Crypto, BitFinex

June 20, 2019 08:00 AM
Focus In The Last Week Has Been Facebook Entering Crypto
Bitfinex (BFX) Launched The 'Unus Sed Leo Transparency Initiative
Bitcoin USD $9,266 +1.70%
Crypto market update

Crypto market update


While The Focus In The Last Week Has Been Facebook Entering Crypto, Innovation/Development Has Continued Within Existing Players In The Space - Namely, Last Week Bitfinex (BFX) Launched The 'Unus Sed Leo Transparency Initiative,' A Dashboard Which Tracks Repurchases Of The BFX-Backed LEO Token - The Site Gives An Unprecedented View Into The Economics Of A Major Exchange And A Level Of Transparency Unseen In A Repurchase Program In Traditional Finance And Otherwise

In a medium post dated June 14, BFX announced they would be adopting a 'continuous burn mechanism.' The company noted that, 'as our revenues flow continuously, we felt the fairest approach to token buybacks would be one built around continuous and constant redemptions.' Stakeholders can now observe as the company, on an hourly basis, burns a 'minimum of 27% of consolidated iFinex revenue' as per the LEO token whitepaper (chart).

Takeaway: In traditional stock buybacks companies are obligated to give periodic updates on activity and one may be able to notice similar purchase amounts on daily insider reports and self identify the activity as 'the buyback.' We've never experienced a situation where an investment abides by their policies on an hourly basis and provides real-time updates tracking their purchases. This is truly innovative stuff for capital markets generally. One of the more exciting components of the crypto space is not only the innovations around crypto itself but the opportunities for companies to build a new capital market from scratch designed for the 21st century.

About the Author

FRNT Financial is a technology and sales layer that offers institutional and accredited investors access to various forms of exposure to crypto-assets. You can subscribe to FRNT Financial Morning Note at https://www.frnt.io/morningnote