UNUS SED LEO (LEO) Review

An independent review of Bitfinex, UNUS SED LEO (LEO)

Quality, distinct utility token value driving LEO’s stability with potential price upside

Company Overview

UNUS SED LEO (LEO) is a utility token that will benefit its users across all iFinex platforms. The company, iFinex Inc. (iFinex) started operations in 2012, and till date hosts a portfolio of blockchain and crypto products such as Bitfinex, Ethfinex, Nectar (NEC), and upcoming products Bitfinex Derivatives, eosfinex, iFinex IEO platform, a security token exchange, and more.

The token, LEO, is designed to empower their community of traders seeking to maximise their potential output on iFinex trading platforms. Bitfinex, one of the firm’s largest exchanges, and home to over 120 tokens pairs will contribute to LEO’s token utility immensely.

Valuation

Picolo analysts incorporated several parameters and assumptions to analyse the fundamental and relative value of LEO token. We adopted a three-prong approach to the fundamental valuation of LEO to determine the intrinsic value of the token. Those three parameters include:

1.Value derived from the token discount, assuming tier 1 discount of 15%

2.Value derived from trading fees for token repurchases and burn

3.The expected value of recoverable assets from Bitfinex Hack and Crypto Capital funds

Several assumptions made by our analysts include an implied monthly growth rate  of  7.5%,  and  a  monthly  discount  factor  of  2.8%  (40%  annualised).  In addition, we further assume a recovery rate of 4.5% of distressed assets to derive an intrinsic value of $2.34.

Our relative valuation (RV) using comparable exchanges based on industry Market Value/Volume multiple (MV/Vol), provided a value of $1.94 per token.

Overall,  a weightage  approach  with  75%  weight  on  fundamental,  and  25% weight on relative valuation was taken to reduce the sensitivity of exchange volume data on the RV model. An intrinsic value of $2.24 per LEO was derived, representing a 50% upside based on the current price.

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