UNUS SED LEO, which means “one but a lion,” appears unaffected by cryptocurrency market volatility. This year has been particularly successful for LEO, as it has experienced a significant increase in its market value.
In March, the value of the LEO token rose by almost 50%. One possible reason for this is Bitfinex listing multiple new tokens in March.
LEO is currently traded at $5.78, a 46.94% increase over the past year. It is now the 17th largest cryptocurrency by market cap, surpassing Near Protocol and DAI, one of the leading stablecoins. Since March, it has risen in the rankings from 23rd place.
What is UNUS SED LEO?
Bitfinex exchange created the LEO token to recover its financial position after losing $850 million in 2018. To cover this shortfall and strengthen its financial position, Bitfinex launched the LEO token sale, raising around $1 billion in a private sale.
The exchange aimed to enhance its ecosystem by providing a utility token that offers various benefits to its users, thus encouraging more active engagement with the platform.
Reasons for UNUS SED LEO’s staying power
Holders of LEO tokens enjoy reduced trading fees on Bitfinex, which is especially beneficial for high-frequency or high-volume traders. LEO tokens also offer discounts on withdrawal and deposit fees, lending fees, and other services within the iFinex ecosystem.
The number of LEO tokens bought and burned must be at least 27% of iFinex’s revenues, the owner of Bitfinex. LEO tokens are purchased at the current market rate. The burn mechanism will continue until all tokens have been redeemed.
Implementing a token burn mechanism, where a portion of the revenue is used to buy back and burn LEO tokens, creates a deflationary model. If demand for the token grows or remains stable, this adds long-term value, appealing to investors.
TradingView’s summary technical rating for LEO today is “sell.” However, the buy trend has been prevalent over the past week, and the one-month rating also indicates a buy signal. Overall, moving averages suggest a strong sell, while oscillators are neutral, indicating that LEO is neither oversold nor overbought.
