Bitfinex’s Tether Tokenized Bond Falls Short of Expectations
Bitfinex Securities recently launched its first tokenized bond, ALT2611, with the aim of raising $10 million. However, after a two-week offering period, only $1.5 million has been raised so far.
About the ALT2611 Bond
The ALT2611 bond is a 36-month bond denominated in USDT, with a 10% coupon. It is issued by Alternative, a Luxembourg-based securitization fund managed by Mikro Kapital.
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Benefits of Tokenized Bonds
Tokenized bonds offer enhanced liquidity, accessibility, security, transparency, and the possibility of trading around the clock. They represent a digital version of traditional bonds issued on a blockchain.
Criticism and Response
The underwhelming response to Bitfinex’s USDT bond issue has drawn criticism from some members of the crypto community. Bitfinex recently addressed a phishing attack and has been working on enhancing its security measures. Additionally, the UK Financial Conduct Authority issued a warning against Bitfinex for unauthorized promotion of financial services and products.
Hot Take: Can Bitfinex Meet Its Investment Target?
As the extended offer period for the ALT2611 bond continues, it remains to be seen whether Bitfinex can turn the tide and meet its investment target.
