Bitfinex Securities, a digital asset platform, has announced plans to reimburse investors involved in its Hilton hotel project at El Salvador’s international airport. The initiative failed to reach its $500,000 minimum funding target required to proceed. This project represented El Salvador’s inaugural public offering of digital debt assets but fell significantly short, securing only $342,000 from investors by the initial deadline — a mere 5% of its $6.25 million fundraising goal.
“A refund will be issued to all investors, as outlined in the Relevant Information Document,” confirmed a spokesperson from Bitfinex to Cointelegraph. Despite this, Bitfinex has decided not to act immediately. “We anticipate the issuer will restructure the offering,” the spokesperson added. However, Inversiones Laguardia S.A. de C.V., the issuer, has not yet disclosed its future plans.
Bitfinex has subsequently removed the public offering from its website. The raised funds were intended for the development of a Hampton by Hilton hotel, spanning 4,500 square meters across five floors with 80 rooms, along with amenities such as a restaurant, workspace, pool, gym, and garden.
Investors seeking a stake in the Hilton hotel were required to invest a minimum of $1,000 to acquire the “HILSV” token on the Bitcoin layer 2 Liquid Network. In return, contributors were promised a 10% coupon over a 5-year period.
In related news, El Salvador, known for its progressive Bitcoin investment and adoption policies, ventured into asset tokenization in April 2023 by granting Bitfinex a digital asset service provider license. Commenting on Bitfinex’s expansion, Bitcoin analyst Stacy Herbert heralded a “new era of capital markets” on Bitcoin in El Salvador, highlighting increased financial market accessibility for the local population.
Meanwhile, El Salvador continues its efforts to establish investment banks that offer Bitcoin enthusiasts less restrictive access to financial services compared to traditional banks.
Source: El Economista