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 Feb 9, 2022 at 8:35 p.m. UTC

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

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.

CoinDesk - Unknown

Bitcoin saw a sell-off on Tuesday but recovered on Wednesday. (TradingView)

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.

CoinDesk - Unknown

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.

CoinDesk - Unknown

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.


Read more about

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 a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

Trending

1
CoinDesk - Unknown
Crypto Lender Celsius Cuts 150 Jobs Amid Restructuring: Report

Withdrawals are still paused and the company has hired restructuring experts as it faces a financial crisis.

CoinDesk - Unknown
2
CoinDesk - Unknown
Lending Platform Vauld Looks to Restructure Amid Crypto Downturn, Suspends Transactions

Vauld has seen withdrawals of around $198 million since June 12.

CoinDesk - Unknown
3
CoinDesk - Unknown
Solana DeFi Protocol Crema Loses $8.8M in Exploit

Crema Finance developers said they are coordinating with “relevant organizations” to gather more information.

CoinDesk - Unknown
4
CoinDesk - Unknown
Software Firm Meitu Lost Up to $52.3M in H1 Due to Slide in Crypto Prices

The app developer had bought 940.89 BTC and 31,000 ETH in spring of 2021.

CoinDesk - Unknown