Analysis: LEO premium may indicate that the disposal process of stolen Bitcoin on Bitfinex is nearing

According to The Block, K33 research director Vetle Lunde pointed out that the current trading price of Bitfinex's LEO token is about 60% above its implied fair value, which may indicate that the market expects new developments in the process of handling the Bitcoin seized during the 2016 Bitfinex hack.

Currently, approximately 94,636 Bitcoins related to this incident remain frozen, representing about 30% of the U.S. strategic Bitcoin reserves, and are undergoing legal proceedings to determine the victims' claims. According to Bitfinex's commitment in 2019, if the assets are recovered, 80% of them will be used to repurchase and burn LEO tokens.

Analysts believe that if the court rules to return the Bitcoins to the victims rather than confiscating them by the government, about 75,000 Bitcoins could gradually enter the market over the next 18 months, with an average daily sell-off of approximately 139 Bitcoins.