First Tokenized Debt Offering in El Salvador Falls Short of Expectations
The inaugural digital debt offering in El Salvador has reportedly faltered in garnering sufficient interest to proceed. Facilitated by Bitfinex Securities, the initiative aimed at constructing a Hilton hotel at El Salvador International Airport managed to raise $342,000 from eager investors. However, this amount fell short of the $500,000 required to advance beyond the initial phase before the specified deadline. Bitfinex Securities indicated that plans are underway for the issuer to restructure the offering.
This pioneering venture sought to attract funding for a Hilton-branded hotel project at El Salvador International Airport, led by Inversiones Laguardia. The original goal was to secure $6.25 million for the development of a hotel encompassing over 80 rooms within a 4,484 square meter space. Regrettably, it only managed to achieve slightly over 5% of its target.
In response to the underwhelming outcome, Bitfinex Securities announced its intention to refund the contributions from current investors and emphasized the necessity for a revamped offering that could appeal more broadly to potential investors. Inversiones Laguardia had previously offered complimentary hotel stays to investors based on their contribution levels, starting from $1,000 and upwards.
Despite initial optimism expressed by Paolo Ardoino, CEO of Tether, who lauded the issuance as a pivotal advancement in El Salvador’s emerging capital market and the introduction of a significant new asset class, the lackluster performance raises questions about the genuine demand for such digital financial instruments.
Notably, El Salvador has yet to issue its anticipated “volcano bonds,” a debt instrument designated to finance Bitcoin City, a pioneering urban project driven by Bitcoin and sustainable geothermal energy.
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