Bitfinex to refund failed El Salvador hotel offering to clients

Bitfinex3D rendering of the hotel from the Bitfinex website.

In this post:

  • Investors in Bitfinex’s Hampton Hotel securities offering could get a refund after its fundraising failed to achieve its $500,000 goal.
  • Since its launch on May 13, the token has only reached $342,000 – $158,000 short of the minimum required amount before the June 11 deadline. 
  • By design, the token can be traded with US dollars and USDT.

Bitfinex Securities, a digital asset platform, has announced that it will be offering refunds to investors of its Hilton hotel venture at El Salvador’s international airport. Unfortunately, the project did not meet the minimum funding requirement of $500,000, which is necessary to proceed. 

Also Read: US House of Representatives to vote on controversial SAB 121 Bill next week

According to a report from local news outlet El Salvador.com, the ‘Relevant Information Document’ 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. That’s $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. 

Source: El Economista

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 “HILSV” 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 Bitfinex’s 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.

Also Read: Crypto bleeds into the weekend – BTC struggles below $57K

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 Bitfinex’s website or in the “Relevant Information Document.”

3D rendering of the hotel from the Bitfinex website

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 Inglés 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

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Which Ethereum (ETH) tokens show signs of accumulation from whales and smart money
Subscribe to CryptoPolitan