Bitfinex Securities, a digital asset platform, has announced that it will refund investors for its unsuccessful Hilton hotel venture at El Salvador’s international airport.
The project, representing El Salvador’s first public offering of digital debt assets, fell short of its initial funding target, garnering only $342,000 against a required $500,000 to proceed.
This amount constituted just 5% of the ambitious $6.25 million total they aimed to raise.
A Bitfinex spokesperson told Cointelegraph, “As per the Relevant Information Document, Bitfinex will be refunding all investors.”
Although the spokesperson indicated that the issuer, Inversiones Laguardia S.A. de C.V., is expected to restructure the offer, no confirmation or detailed plan has yet been provided by Inversiones Laguardia.
Following this setback, Bitfinex has withdrawn the public offering from its platform.
The funds raised were intended to build a Hampton by Hilton hotel, designed to span 4,500 square meters over five levels.
Planned amenities included 80 rooms, a restaurant, working area, swimming pool, gym, and a garden.
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To participate, investors were required to purchase the “HILSV” token with a minimum investment of $1,000 on the Bitcoin layer 2 Liquid Network, promising a 10% coupon over five years.
El Salvador, which has gained attention for its Bitcoin adoption and investment strategy, took a significant step in April 2023 by granting Bitfinex a digital asset service provider license.
This move was part of the country’s broader strategy to tokenize real-world assets. Commenting on the venture, Bitcoin analyst Stacy Herbert remarked that Bitfinex’s initiative marked a “new era of capital markets” on Bitcoin in El Salvador, offering locals new avenues to participate in financial markets.
Additionally, El Salvador continues to push forward with its innovative financial strategies, including plans to establish investment banks tailored for Bitcoin users.
These banks are expected to provide financial services with fewer restrictions than traditional banking institutions, broadening access and opportunities for local and international investors alike.
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