Leo (Leo): A Utility Token for Trading Platforms
What are Leo’s Functions?
Leo is one of the most innovative tokens used for optimizing the operations of the Bitfinex exchange and other trading platforms. In particular, Leo introduces a number of additional benefits to the platform’s users, thus increasing their demand for its services.
The amount of taker and lending fees can be proportionally reduced for all users, contributing to higher users’ satisfaction. LEO is a utility token that provides additional options for traders in terms of reducing the expected fees according to their trading strategies and intensity of the platform’s use. In most cases, the discounts of 25% are offered to most traders. Leo’s white paper also presupposes that a portion of its tokens is burned on a regular basis. Therefore, their prices should tend to appreciate over time.
LEO’s current price is $5.95 with the circulating supply of 953.9 million tokens. LEO does not have a maximum supply as it is regulated on the basis of complicated algorithms that consider the demand for tokens and the rates of burning them. The current market capitalization equals $5.69 billion, making LEO the 30th largest cryptocurrency. In contrast with most other tokens, LEO continues demonstrating the rapid growth in 2022. In particular, its all-time high level was reached on February 8th, 2022. If the overall crypto market continues to restore its positions, LEO may receive an additional impulse for sustainable growth in the following months. At the same time, the competitive positions of the Bitfinex exchange are also highly important for determining LEO’s price in the long run.
Figure 1. Leo’s Functionality;
Data source – Young and Investing
Investing in LEO: Pros and Cons
One of the major arguments for investing in LEO is its high growth in the recent months associated with the growing demand for the Bitfinex exchange and users’ willingness to economize their fees. As this tendency is likely to persist in the following months, LEO may be a reasonable investment for a large number of people. At the same time, the long-term prospects of such investments are largely uncertain due to the growing number of competitors as well as concerns about Leo’s management ability to optimally regulate the token’s supply and implement additional innovations on a regular basis.
Figure 2. Price Dynamics of LEO/USD (1-Month); Data source – CoinGecko
The short-term price dynamics is more beneficial in terms of potential revenues expected from investing in LEO. The current support level of $5.20 appears to be comparatively strong for preventing the further price decline. Moreover, the price seems to complete its correction and reach the local minimum. The resistance level of $7.60 indicates the maximum price reached by LEO. The combination of the growing demand for the Bitfinex exchange services with the general growth of the crypto market should allow reaching the new maximums in the following months. Overall, investors can open a long position at the moment with expectations of the price reaching a higher boundary of the current price channel with the possibility of even exceeding the all-time-high level within the following months. However, the relevant fundamental and technological factors related to Leo’s ecosystem should be closely monitored.
