Stacy

World

Refund

Million

Bitfinex, a prominent cryptocurrency exchange has announced plans to refund investors involved in its El Salvador Hilton Hotel project. <a href="https://cointelegraph.com/news/bitfinex-to-refund-investors-in-el-salvador-hotel-project" rel="noopener noreferrer nofollow">According</a> to the platform, the project, which aimed to build a Hilton Hotel in El Salvador, has yet to meet its $500,000 minimum funding requirement, prompting Bitfinex to take action.
<h2 id="b-bitfinex-still-remains-hopeful-b">Bitfinex Still Remains Hopeful&nbsp;</h2>
Despite the initial excitement, the project struggled to attract financial support. The project realized $342,000 from investors before the first deadline; barely 5% of the $6.25 million it needed.
In a statement, Bitfinex confirmed that it would refund investors who participated in the fundraising campaign. However, Bitfinex also mentioned a potential lifeline for the project. The company is currently in discussions with the debt issuer, who has expressed interest in making a new offer that could revive the hotel project. As such, Bitfinex is awaiting further details and a formal proposal from the issuer before proceeding with the refunds.
Meanwhile, Bitfinex has removed the public offering from its website, pending when there is a positive resolution.
<h2 id="b-details-of-the-6-25-million-tokenized-debt-b">Details of the $6.25 Million Tokenized Debt</h2>
Recall that in April, the leading tokenized securities <a href="https://thecoinrise.com/bitfinex-securities-to-launch-tokenized-debt-issue-for-el-salvador-airport-hotel/" rel="noopener noreferrer nofollow">platform launched a $6.25 million tokenized debt issue</a> to support the development of a 4,484 square meter Hampton by Hilton hotel complex at El Salvador International Airport. According to the firm, this initiative will offer investors a unique opportunity to participate in a project with promising returns.
The hotel complex, part of a wider modernization initiative at El Salvador International Airport, <a href="https://thecoinrise.com/el-salvador-implements-new-law-to-lure-foreign-bitcoin-investors/" rel="noopener noreferrer nofollow">aims to improve the region’s hospitality offerings</a> and boost tourism. Notably, the tokenized debt has a 10% coupon over a five-year term, allowing a minimum investment of $1000. This means buyers get an annual 10% interest payment on their investment for five years, afterwards, the principal is returned.
To achieve the initiative set in place, Bitfinex Securities collaborated with Inversiones Laguardia S.A. de C.V. (HILSV), an established entity in El Salvador. Meanwhile, the token will be issued under the ticket HILSV and traded against the U.S. dollars and Tether’s USDT stablecoin.
<h2 id="b-el-salvador-and-real-world-tokenization-b">El Salvador and Real World Tokenization</h2>
El Salvador’s venture into real-world asset tokenization aligns with its embrace of Bitcoin, which gained momentum with the country’s decision to grant Bitfinex, a digital asset service provider license in April 2023. This move reflects a <a href="https://thecoinrise.com/el-salvador-slashes-income-tax-on-foreign-investments-and-remittances-to-0/" rel="noopener noreferrer nofollow">shift in investment opportunities for locals</a>, moving beyond traditional options like real estate purchases.
Likewise, Bitcoin commentator Stacy Herbert sees this initiative as a milestone in El Salvador’s capital markets, offering the local population new avenues for financial participation. Jesse Knutson, Head of Operations at Bitfinex Securities, views the capital raise as a testament to the transformative potential of <a href="https://thecoinrise.com/el-salvador-btc-holding-is-now-85m-in-profit/" rel="noopener noreferrer nofollow">Bitcoin-based capital markets</a>, marking Bitfinex’s first venture in El Salvador.
The post <a href="https://thecoinrise.com/bitfinex-to-refund-investors-of-el-salvador-hilton-hotel-project-heres-why/" rel="noopener noreferrer nofollow">Bitfinex to Refund Investors of El Salvador Hilton Hotel Project, Here’s Why</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Bitfinex to Refund Investors of El Salvador Hilton Hotel Project, Here’s Why

Table of Contents

TheCoinrise Media

Other articles published on Jul 6, 2024

Justin Sun ridicules Germany’s Bitcoin sell-off after UEFA Euro knockout

Nigerian blockchain leader advocates AI to save African languages

US House May Vote to Overturn Biden’s SAB 121 Veto

Crypto Power Plays: BlockDAG Dominates with $56.4M Presale, XRP and Toncoin in Hot Pursuit

Crypto – Ripple: the New Face of Finance According to Wall Street!

Analyst Warns Investors About Bitcoin’s Potential Decline

Join our free newsletter for daily crypto updates!