- Leo adds 8.2 percent
- The public open to tracking iFinex repurchase of Leo coins
Behind a surging coin, iFinex plans to open up to the public its buyback program. In an initiative called the UNUS SED LEO Transparency Initiative, the public will track how the parent company would purchase Leo from their gross revenue. Meanwhile, Leo is up 8.2 percent from last week’s close.
Leo Price Analysis
There is noticeable progress. It all has to do with BitFinex and their effort of improving transparency. Through an initiative that will allow the public to track iFinex buying back and “burning” of Leo tokens, they hope the exchange’s reputation will improve. That is even if it is in slightest margins.
The initiative dubbed the UNUS SED LEO Transparency Initiative is no doubt a way of instilling confidence in an exchange struggling to accusations of commingling with Tether Limited funds to stay ashore. Through an announcement, BitFinex said this initiative is around a “real-time token burn redemption mechanism,” adding that:
“Token burn mechanism will see iFinex and its affiliates buy back UNUS SED LEO from the market, at market rates and on a real-time basis, equal to a minimum of 27% of consolidated gross revenues of iFinex (exclusive of Ethfinex), until no more tokens are in commercial circulation.”
The announcement coincides with developing news that the exchange is stepping up its KYC and AML rules implementation. A user recently took to Twitter, sharing with the community an email from the exchange asking him to share additional details of his account. That, in the email, includes details and explanations of his objectives and activities.
At the time of writing, Leo is three positions away from the top 10. Surging 8.2 percent from last week’s close, the asset is at 13th. Behind this resurgence is the fear of missing out (FOMO) that could even supersede candlestick arrangements.
However, a standout in all this is the performance of an asset that is rallying at the back of solid fundamentals and drives from the issuing company. Presently, May 20 bar overshadows these bullish sentiments. The bar is wide-ranging with decent trading volumes.
Despite a divergence between trading volumes and price, bulls will likely drive prices above May 20 highs. Optimism is because of the iFinex buyback program. Therefore, even if prices falter, support could be at $1.75 or worse $1.5 before buyers flow back.
Overly though, fundamentals mean loading is present on every dip in smaller timeframes. In that case, fitting stops would be at $1.75 and $1.5.
June 10 bar leads this trade plan. It has high trade volumes of 3.9 million versus 1.3 million. Any close above its high at $1.98 could spark demand as buyers momentum drive Leo towards May 30 high of $2.5
Chart courtesy of Trading View. Image Courtesy of Shutterstock