Bitfinex Update: Equity Interest in Exchange for BFX Tokens!

in money •  8 years ago 
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Source

Equity Interest


Yesterday, rumours of BFX tokens being converted into equity interest in the respective exchange were proven true.

This is what Bitfinex wrote on their site:


 We have formally signed a letter of intent with BnkToTheFuture, the online investment platform for financial innovation and technology investment opportunities, to provide solutions towards compensating customers with equity in Bitfinex.
BnkToTheFuture will be providing a Special Purpose Vehicle (SPV) through which qualifying BFX token holders can contribute their tokens in exchange for an equity interest in compliance with their individual jurisdictions. 
Further details will be released in future announcements.BnkToTheFuture has hosted funding rounds resulting in over $70m worth of investments from qualified investors over the past year including investments in BitPesa, Uphold, ShapeShift and many others. 
They now host the largest global community of qualified investors investing online in FinTech, Bitcoin, Blockchain and Technology companies. 
Source

I imagine that only BFX tokens that were directly issued from Bitfinex (see this post) would be certain to qualify. 

It will be interesting to see how many customers elect for this solution, rather than seeking financial reimbursement.



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This might help reassure the people that lost money from the theft.

Perhaps. I wonder exactly how many people will be eligible for this (since there are also jurisdictional concerns on top of BFX T n Cs). If this succeeds, I suppose it'll pretty much ensure the survival of Bitfinex's exchange. And they'll hold the bulk of equity anyways. So a pretty decent hedge.

That's why I think it will reassure people. The possibility of reclaiming equity should stabilise the token value. Doesn't matter if people claim the equity or not. As with many of these things it is about market sentiment and confidence.