Bitfinex Securities to refund Hilton hotel venture investors due to failing to meet the $500,000 funding goal by $158,000.
The Hilton hotel project, planned for El Salvador’s airport, raised only $342,000, falling short of its $6.25 million target.
El Salvador granted Bitfinex a digital asset service provider license in April 2023, reflecting its commitment to crypto innovation.
Bitfinex Securities, a digital asset platform, has announced that it will refund investors in its Hilton hotel project near El Salvador’s international airport. The project failed to meet the minimum funding requirement of $500,000, which is necessary to proceed.
The fundraising campaign for the Hilton hotel venture began on May 13. Unfortunately, by the deadline on June 11, it had only raised $342,000, falling short by $158,000. The overall goal was to raise $6.25 million, so the project could not proceed.
The public offering was intended to fund the construction of a five-story hotel. This establishment was designed to include 80 rooms, a swimming pool, and a garden, among other amenities. Investors were also offered complimentary nights and unlimited stays over five years, subject to a minimum investment of $1 million.
Investors were eligible for refunds if the fundraising goal was not met or the issuance of digital assets was canceled according to the refund clause. As part of the agreement, crowdfunders would receive a 10% coupon over a five-year period. The minimum investment required was $1,000 to acquire the HILSV token on the Bitcoin layer 2 Liquid Network, which granted partial ownership of the hotel.
El Salvador issued Bitfinex a digital asset service provider license in April 2023. This move demonstrated the country’s commitment to innovation in the cryptocurrency and finance sectors. The Hilton hotel venture was viewed as a step toward new capital markets in El Salvador.
El Salvador is also considering establishing investment banks specifically for Bitcoin enthusiasts. These banks would provide better access to financial services with fewer restrictions than traditional banks.
Bitfinex Securities’ decision to refund investors demonstrates the difficulties of meeting funding targets in the digital asset space. Despite the setback, El Salvador continues innovating in crypto finance, signaling future opportunities for investors and the local economy.
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