Bitfinex’s Tokenized Bond Falls Short of Investment Target
Bitfinex Securities launched the ALT2611 Tokenized Bond in October, aiming to raise $10 million. However, after a two-week offer period, only $1.5 million was raised, representing just 15% of the target. The bond, issued by Alternative and managed by Mikro Kapital, is denominated in USDT and has a duration of 36 months. Bitfinex had high hopes for the tokenized bond, with Paolo Ardoino, the CTO of Tether, calling it a “new era for capital raises.” The underwhelming response to the bond has drawn criticism from the crypto community.
What Are Tokenized Bonds?
Tokenized bonds like ALT2611 are digital representations of traditional bonds issued on the blockchain. They offer advantages such as liquidity, accessibility, security, transparency, and round-the-clock trading. The minimum initial purchase size for the ALT2611 bond was set at 125,000 USDT.
Tether and Bitfinex Settle FOIL Dispute
Tether and Bitfinex have agreed to settle their dispute regarding a Freedom of Information Law (FOIL) request filed by journalists. While emphasizing their commitment to transparency, they clarified that not all documents will be released due to standard business practices. Tether’s USDT is currently the largest stablecoin in the world.
Hot Take: Bitfinex’s Tokenized Bond Fails to Meet Expectations
Bitfinex’s tokenized bond fell significantly short of its $10 million investment target, raising only $1.5 million. This underwhelming response has raised doubts about USDT’s dominance in capital markets and cast doubts on the success of tokenized bonds as a new form of capital raising. Despite high hopes and expectations, the bond failed to attract significant investor interest. This outcome may prompt Bitfinex and other platforms to reassess their strategies and marketing approaches when it comes to tokenized bonds. It remains to be seen whether alternative investment opportunities will gain more traction in the crypto market.
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