Bitfinex has redeemed more of its outstanding BFX tokens today. This is the second time Bitfinex has redeemed BFX tokens that were sitting unencumbered on wallets on the Bitfinex system. BFX holders should be pleased with this development and their feelings are reflected in the price of BFX/USD which are now trading above 0.60. It seems more likely that the number of BFX tokens outstanding will continue to decrease as time goes by and this should result in a higher price for BFX tokens. Since the BFX tokens were released, there has been a gradual increase in their value as the market gets more confident in the solvency of Bitfinex and its ability to finance the redemption of BFX tokens.
The supply of BFX tokens will be reduced thru a few different means including BFX based fees collected by Bitfinex for BFX transactions, periodic redemption by Bitfinex at 1.00, and voluntary conversion by BFX holders using the two conversion methods offered. Investors should be increasingly more confident that Bitfinex eventually redeem the remaining BFX tokens held on wallets on the Bitfinex platform.
The rate to lend BFX tokens has remained very low, reflecting the market’s expectation that the price of BFX tokens will continue to rise to par value. Personally, I am bullish on the price of BFX tokens and I’ve been purchasing new tokens with the USD interest I’m earning on Bitfinex.
