3D rendering of the hotel from the Bitfinex website.Bitfinex Securities, a digital asset platform, has announced that it will be offering refunds to investors of its Hilton hotel venture at El Salvadorโs international airport. Unfortunately, the project did not meet the minimum funding requirement of $500,000, which is necessary to proceed.ย
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According to a report from local news outlet El Salvador.com, the โRelevant Information Documentโ for the HILSV token used in the public offering includes a clause that allows investors to receive a refund if the fundraising goal is not achieved.
Bitfinex chooses an honorable path
The document, published on May 13, states that a refund can be obtained under two conditions. First, if the minimum amount required to carry out the project, which is set at $500,000.00, is not reached by the end of the public offering. Second, if the issuance of the digital assets is canceled.
Since its launch on May 13, the token has only reached $342,000. Thatโs $158,000 short of the minimum amount needed by the June 11 deadline. The goal was to achieve a total of $6.25 million.
The public offering of securities aimed to fund the construction of a luxurious five-story hotel. This luxurious establishment was planned to feature 80 rooms, a refreshing swimming pool, and a beautiful garden, among other lavish amenities.ย
Additionally, it provided investors with complimentary nights and the opportunity for unlimited stays over a five-year period, contingent upon a minimum investment of $1 million.
Investors were required to make a minimum $1,000 investment in order to acquire the โHILSVโ token on the Bitcoin layer 2 Liquid Network, granting them ownership of a portion of the Hilton hotel.
As part of the agreement, crowdfunders were entitled to a 10% coupon over a period of 5 years.
The future of the HILSV token
In April 2023, El Salvador made a move into the real-world asset tokenization space by granting Bitfinex a digital asset service provider license. This demonstrates their continued commitment to innovation and expanding their presence in the crypto and finance industry.
Upon the announcement of the Hilton hotel venture, one analyst said that Bitfinexโs expansion would usher in a fresh era of capital markets in El Salvador. The analyst highlighted the significance of this development, as it would provide the local population with a novel avenue to access financial markets.
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Meanwhile, El Salvador is exploring the establishment of investment banks that would provide Bitcoin enthusiasts with greater access to financial services with fewer limitations than conventional banks.
According to the earlier plan, the token can be traded with US dollars and USDT; however, the latter is not mentioned on Bitfinexโs website or in the โRelevant Information Document.โ
El Salvador.com reached out to Inversiones Laguardia for comment and visited the address listed as their headquarters, only to find a different company called Inglรฉs Corporativo. Another individual who responded to the provided phone number for Inversiones Laguardia also asserted that it was associated with a different company.
As stated in the HILSV document, investors can receive their reimbursements through the same channels they used for their initial investment.
Cryptopolitan Reporting by Florence Muchai
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