The token Unus Sed Leo is the exchange token from the Bitfinex exchange. This token has increased by around 100% in the last few weeks. In general, the chart history can prove that the token has been rising steadily since December 30, 2019. The reason for this could be the constant “burns” (burning of the tokens). But why has the price exploded so much? In this article, we will explain everything that happened with the Bitfinex hack, the recent FED bounty, and the LEO price increase.
Why LEO Price increased by 100%?
The exchange Bitfinex was hacked in 2016 where 119,754 bitcoins were stolen. These bitcoins could not be assigned until now and could not be sold either because the addresses are blacklisted on the exchanges. Now the US authorities have confiscated Bitcoins worth 4 billion. On the other hand, this has nothing to do with the price so far. Moreover, the Unus Sed Leo token white paper states that at least 80% of the recovered bitcoins lost from the hack in 2016 will be used to buy and “burn” the Unus Sed Leo token, thereby increasing the market capitalization and thus also pushing up the price of the token. Since the news broke, the price has increased by around 100%, which is probably the reason for the increase.
Can LEO Price reach $10?
When the Unus Sed Leo price started to rise, the market capitalization was around $4.8 billion at a price of around $5. Now the price is $6,791 and has a market cap of $6.5 billion. Since Bitfinex will invest at least 80% of the $4 billion in the Unus Sed Leo course and then burn parts of the token, the course could have a market cap of at least $8.8 billion. This means that if there are no buyers and sellers, the Unus Sed Leo price will be around $9.23. With bitcoins recovered from a hack being bullish news, more buyers could jump on the bandwagon and the price could surge to $10.
We might expect some profit-taking before that 10$ price mark. That’s why planning an adequate entry and setting a stop-loss can go a long way in managing your risk.
