According to the Chief Technology Officer at Bitfinex, the popular and controversial cryptocurrency exchange has managed to raise a total of $1 billion in a private sale.
Bitfinex Closes $1B Private Sale
Bitfinex, one of the most popular cryptocurrency exchanges, has managed to raise $1 billion in 10 days during a private sale, according to the company’s CTO, Paolo Ardoino.
He took to social media to reveal that private companies have invested over $100 million each, while a lot of other investors have put up more than $1 million each. Supposedly, the private sale lasted for 10 days.
. @bitfinex is able to raise 1b USDt in 10 days, in a private sale. Private companies, giants in our industry and outside, made investments for > 100m each. A legion of inside and outside users made investments for > 1m each.
— Paolo Ardoino (@paoloardoino) May 13, 2019
As Cryptopotato reported earlier in April, the cryptocurrency exchange was rumored to plan an Initial Exchange Offering in order to raise $1 billion. Later on, the company released an official white paper document which planned the ten-day window for the private token sale, followed by a discretionary phase of public selling if there was any supply of tokens left over.
Androino, however, also said that there is a “small allocation left and we just prefer to share to small investors until there is time,” hinting that there might be a public sale after all.
$1B Worth of USDT? Not So Much
One of the first things that made an impression was the fact that Androino said that Bitfinex raised $1 billion in USDT. The entire market cap of USDT is currently around $2.8 billion, suggesting that more than 30 percent of that went directly into Bitfinex’s private sale.
Speaking on the matter was popular cryptocurrency commentator and analyst at eToro, Mati Greenspan, who said:
Bitfinex is claiming that they’ve already raised 1 billion USDT from private investors in just 10 days. The total market cap of USDT is $2.76 Billion
Androino was quick to answer, outlining that they had also accepted USD and that he should have clarified that the $1 billion was raised in “USDT or USDT equivalents.”
The event comes not so long after Bitfinex was served with a court order by the New York Attorney General, alleging the coverup of $850 million loss with Tether reserves. Bitfinex has since responded to the court order, outlining that it was written in “bad faith” and “is riddled with false assertions.”
The post That Was Quick: BitFinex CTO Confirms Raising $1 Billion in a Private Sale appeared first on CryptoPotato.