Bitfinex’s LEO Token Jumps 46%, XRP Gains Slightly in Flat Market

Upward movement of the LEO token led gains for investors in an otherwise slow market.

AccessTimeIconFeb 9, 2022 at 1:58 p.m. UTC
Updated May 11, 2023 at 5:28 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto markets showed nominal movement on Wednesday as bitcoin and ether, the two largest cryptocurrencies by market capitalization, traded flat with gains of a nominal 1% in the past 24 hours.

Bitcoin saw some selling from the $45,000 level on Tuesday to as low as $42,500. Prices, however, recovered to $44,200 in European trading hours.

Analysts said bitcoin could develop a continued surge towards the $50,000 level if the current momentum is maintained.

“Recovery in institutional demand for stocks late in the day on Tuesday helped bitcoin stay above the 50-day moving average,” explained Alex Kuptsikevich, analyst at FxPro, in an email to CoinDesk. “Continued buying on the decline to this level will keep the technical picture bullish as upside momentum develops to $49-50K.”

“A sharp dip lower today or tomorrow will raise the issue of a false break and bring the sellers back into play, heading for $37-38K,” he cautioned, however.

Among the top ten cryptocurrencies, XRP, the native cryptocurrency of RippleNet, extended gains with a 3% surge in the past 24 hours. Prices for the payments token moved upward amid positive sentiment among investors pertaining to the ongoing Ripple v. SEC court case.

XRP hit resistance at $0.90. (TradingView)
XRP hit resistance at $0.90. (TradingView)

Bitfinex’s unus sed leo token, which trades under LEO, led gains among majors with a 46% increase in the past day. The increase came as U.S. federal officials seized nearly $3.6 billion worth of bitcoin tied to the 2016 hack of the crypto exchange Bitfinex.

LEO traded at $7.19 in European afternoon hours, increasing from lows of $4.98 on Tuesday. LEO hit all-time highs of $8.16 in early Asian trading hours but has since fallen 11.6%, data from analytics tool CoinGecko showed.

LEO set all-time highs in early Asian trading hours. (TradingView)
LEO set all-time highs in early Asian trading hours. (TradingView)

That move came as Bitfinex said in a statement it was trying to recover the seized bitcoin and use 80% of recovered funds to purchase and burn LEO in the open market. This would essentially lower the circulating supply and make the tokens more lucrative for investors.

“Bitfinex will, within 18 months of the date it receives that recovery, use an amount equal to 80% of the recovered net funds to repurchase and burn outstanding UNUS SED LEO tokens,” the company confirmed, as reported.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about