With the mini-bull run behind us, I thought it would be nice to check how the Coinmarket cap developed over time.
The table above shows how the top 20 has changed significantly from 2017 (Jan 16) to 2018. However in the following years there was less of a shake up. Clearly the market cap has been severely impacted by the 2017 end of year bull run. In the following bear market the ranking has stayed relatively stable. To my surprise there are still quite some Forks in the top 20 and I would expect the majority of them to drop our during the next bull run, as I would hope that utility will become more important than the name of the project.
However the top 3 of the Coinmarket Cap seems unshakeable.
This exercise led me to investigate the coins in the top 20 a little bit more in detail and I finally checked out LEO, as it has always intrigued me, what is it and why is it in the top 20? I will add some more words to that at the end of this article.
So what happened with the projects vanishing from the top 20?
The projects dropped out in the recent years have been able to keep a position in the top 50 with the exception of ICON. But among the projects, which were shaken out after 2017 there is a bigger variation to see. Clearly a lot of them have been overtaking by newer projects with superior technology.
What is Unus Sed Leo (LEO)?*
“Unus Sed Leo (LEO) is an exchange token that was launched on May 22 by iFinex, the parent company of Bitfinex, Ethfinex, and Tether. The LEO token is an exchange utility token for current and future iFinex trading platforms and services.
It was launched to the public following a private sale raising $1 billion. During this private sale, the purchase price of Unus Sed Leo (LEO) was 1 USDT for 1 LEO and the total supply of 1,000,000,000 (1 billion) LEO tokens were sold.
Why Did iFinex Launch an Exchange Utility Token?
Cryptocurrency exchanges issue their own exchange tokens for a variety of reasons; to attract more users, to benefit existing users, and to generate more profits. iFinex is no different.
However, the primary reason they issued the LEO token when they did is because in 2018, Bitfinex’s payment processor, Crypto Capital, was subject to a partial government seizure equating to $850 million of Bitfinex’s funds. Bitfinex is actively working to expedite the return of these funds but there is no certainty they will be able to recover them.
Therefore, to alleviate this cash shortfall, iFinex conducted a private offering of $1 billion for its Unus Sed Leo token.
If Bitfinex is successful in recovering the $850 million funds from Crypto Capital, they stated that an amount equal to 95% of the recovered funds will be used to repurchase outstanding tokens and then burn them. As well, Bitfinex will also use 80% of recovered funds from a 2016 hack to repurchase and burn Unus Sed Leo tokens.
The repurchasing and burning of LEO tokens from recovered funds will reduce the token’s total supply and drive the price up through time.”