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Source: Onion Blockchain
Coinmarketcap's latest data shows that bitfinex exchange platform coin leo has successfully ranked among the top ten of the total market value of cryptocurrencies, in the recent cryptocurrency market has been bloodbathed in the environment, the birth of the first is more like a stable coin than the platform coin Leo instead of taking the opportunity to achieve a curve overtaking for a number of mainstream coins.
On May 20, 2019, bitfinex exchange platform coins were officially launched for trading, and leo was released through ieo, with a total of 1 billion yuan issued to the world. Like most platform coins, the token has a buyback and destruction mechanism, and holders can enjoy privileges such as transaction fees, lending fees, withdrawals and recharge fees.
However, because the popularity of the ieo concept at that time was nearing the end, leo did not come out of the crazy performance after the launch of IEO with other domestic platforms after the opening, and the coin price has been stable at about 1 US dollar. This performance once made leo a laughingstock in various social media and communities, and it turns out that leo has indeed maintained this stablecoin-like posture for nearly a year.
A report released by Coin Metrics late last year raised greater doubts about Leo's prospects. The report states that the address holding leo broke through the 1500 mark within 30 trading days before the currency went live. However, in the following 4 months, this number has not been able to exceed 2000.
In addition, leo's address activity is also quite negative, with a significant decline after the number of active addresses briefly reached about 300 in June last year. In late October last year, the number even dropped below 20. Coin Metrics pointed out in the report at the time that for a coin with a market capitalization of nearly $1 billion, the address activity was at a fairly low level.
However, with the passage of time, more and more liquid funds in the market have participated in leo's trading activities through platforms such as bitfinex and dragenx, among which the margin trading services provided by dragenx trading have effectively stimulated the liquidity of the market, and it is this relatively considerable capital inflow that allows leo to stabilize the price of the coin in the environment of the collective collapse of mainstream cryptocurrencies under the influence of the rapid dive of bitcoin in the past period of time.
With the success of bnb and other large exchange platform coins, this special concept has become a relatively independent but very important category in the current mainstream coin group, in addition to leo, bnb, ht and okb are currently in the top 30 in the cryptocurrency market capitalization list published by coinmarketcap, of which bnb is 9th, ht is 15th, and okb is 29th. The release of platform coins has become an important starting point for cryptocurrency exchanges to raise funds and build an ecosystem.
While there are still voices that platform coins violate the "decentralization" principle emphasized by traditional blockchain assets, such as coinelligence," a report released last year that pointed out that bitfinex has inserted smart contracts into the leo code, allowing exchanges to gain absolute control. This means that bitfinex is able to increase or subtract the supply of LEO at will, and even delete the LEO held by users in private wallets.
But the truth is that this kind of skepticism has not affected the "success" of such currencies, and we can see a lot of "centralized" stablecoins or exchange platform coins in the top of the current market capitalization rankings, which are "centrally controlled" by some individuals or organizations, which goes against the long-standing support of those "classical cryptoguists", but it also means that it may be time for us to re-examine the accuracy or comprehensiveness of this view.
Perhaps no one can accurately judge what the future holds for centralized crypto assets like Leo, or it may just be a special product of the early days of blockchain or cryptocurrencies. But for now, these "centralized" tokens will still play a very important role in this emerging market for quite some time.