For the first time, LEO has dropped below its seed price of $1. It had previously stayed resilient despite the mounting controversy surrounding its issuer, Bitfinex.
LEO has taken a plunge over the last 24H and has finally fallen below the $1 price point, now trading under private sale price. The IEO raised some $1B this year and initial investors are currently at a loss.
LEO’s Slight Plunge
The drop has caused LEO to drop a few places on cryptocurrency rankings. Despite being 11th just a few days ago, it is currently at 13th with a market capitalization of $978M. Tron (TRX) and Cardano (ADA) have both surpassed it now, posting meager gains today.
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
The drop today is a serious support level breached for the controversial exchange token. Interestingly enough, it seems that some large players in the space previously saw this coming. A few days ago, one whale moved 1.2M LEO into the exchange which was valued at the time at around $1.2M, as BeInCrypto has previously reported. That particular transfer came just days after another $5.5M worth of LEO was moved to Bitfinex. Both of these transfers seem to coincide with the recent price drop, indicating there is significant sell pressure.
Suspicious From the Start
The LEO IEO was controversial before it even began. The IEO altogether raised some $1B but largely seemed like a cash-grab to cover up Bitfinex’s $850M losses. These losses were ‘paid’ initially by loaning money from Tether (USDT), which the exchange eventually paid back with the LEO IEO. The act of ‘loaning yourself money’ via a stablecoin you issue has naturally raised eyebrows, which is largely why regulators have been hot on the case. The case between the New York Attorney General and Bitfinex/Tether is still ongoing, as BeInCrypto has reported.
With LEO now breaking below the $1 price point, it needs a serious miracle to regain this support level before more investors run for the door.
Do you think LEO will recover or is this the start of a slow bleed downwards? Let us know your thoughts below in the comments.
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