Bitfinex’s LEO Listed on OKEx: Forming an Alliance Against Binance?

In a recent announcement, OKEx has stated that the native utility token of Bitfinex, UNUS SED LEO (LEO), will be available for trading on the platform. As it stands, deposits are already available — but trading for the four trading pairs LEO/BTC, LEO/ETH, LEO/USDT, LEO/USDK and will open at 14:00 UTC on June 13, 2019. Not only this, but Bitfinex has returned the favor by listing not one but two tokens from its competitor on its exchange platform — adding OKB, the native utility token for OKEx, as well as the stablecoin USDK from OKEx subsidiary OKLink. Both OKB and USDK trading went live earlier today at 11:00 UTC, with both cryptocurrencies being tradeable against any of the 10 base assets on Bitfinex — including BTC, USD, and EUR.

Strength in Numbers

The news comes just a week after it was announced that OKEx had partnered with Prime Trust to launch the fiat pegged USDK stablecoin. According to the announcement, USDK is 100 percent backed by USD and will be audited monthly by a third-party firm that will provide monthly reports to ensure maximum transparency — unlike some other stablecoins. Like Binance’s BNB Coin, OKEx plans to migrate its own utility token from ERC20 to its native blockchain, OKChain, later this year. As of yet, iFinex has not announced any similar plans to migrate UNUS SED LEO to a native blockchain — with the token currently existing as an ERC20 token. The move appears to be an attempt to make a coordinated front against Binance, easily the largest cryptocurrency exchange platform around. With an increasing number of exchanges launching a utility token to rival Binance Coin (BNB), it remains to be seen how the industry juggernaut will maintain its advantage.

The Market Moves Thus

LEO/USD has been following an ascending support line since reaching the low on May 21. Afterward, the price has been gradually increasing. At the time of writing, the highest price recorded has been $1.975. Measuring from the low, this amounts to a 95 percent increase. After touching the support line on June 4, the rate of increase intensified. While the LEO price has created successive higher highs, the RSI has not done the same. This is known as bearish divergence and often precedes price increases. The previous time this occurred was during the highs on May 26 and 27. Afterward, the price began a decrease and eventually reached the support line.

Future Movement

Since there are less than 25 days of data on LEO, future price predictions can be inaccurate. However, below is an Elliot wave formation, which gives us a possible price target for the upcoming move. Furthermore, the ensuing fourth wave, which is a downward one, is supported by the analysis of the technical indicators in the previous section. The target for the fifth wave is found by using a fib retracement from the highs of $1.975 to the ascending support line. The price should reach the top between $2.4 and $2.5.

Summary

• LEO/USD has increased by 87% since May 21.
• It is following an ascending support line
• Bearish divergence has developed in the RSI.

How do you think an alliance between cryptocurrency exchanges could benefit/disadvantage the industry? Let us know your thoughts in the comments below!