The Bitfinex Securities platform has announced its intention to return funds to all investors in the construction of the Hampton by Hilton hotel complex at El Salvador International Airport. This is reported by Cointelegraph.
The company failed to raise the minimum funding of $500,000 needed to continue. The project raised only $342,000 — less than 5.5% of the originally planned $6.25 million.
Bitfinex noted that at the current stage they are counting on debt restructuring to preserve the initiative. In case of refusal, investors will receive a refund.
Bitfinex's plans to tokenize the construction of a hotel in El Salvador became known in April. The platform has issued tokenized debt obligations. Inversiones Laguardia SA de CV is responsible for the product.
"HILSV marks the first tokenization of El Salvador's digital assets and represents an important step in the development of the nascent market, as well as the emergence of a new large asset class," said Paolo Ardoino, technical director of Bitfinex at the time.The company also expected to create 1,000 jobs during the construction phase of the facility and up to 5,000 during its operation.
Recall that in February, Nayib Bukele was re-elected President of El Salvador. He promised to continue following the bitcoin strategy. In June, the head of state proposed to create private banks for crypto investors.
In May, ARK Invest CEO Katie Wood predicted a 10-fold increase in El Salvador's gross domestic product thanks to bitcoin.