Bitfinex’s Tokenized Bond Falls Short of Investment Target, Raises Only $1.5M of Expected $10M
Bitfinex’s recently-launched tokenized bond have fallen short of expectations, raising only $1.5 million of its initial target of $10 million.
Bitfinex Securities, the branch responsible for listing tokenized real-world assets, introduced the ALT2611 Tokenized Bond in October, with the product going live on November 15.
However, after a two-week offer period, the official website reported that only $1.5 million had been raised, representing a mere 15% of the target.
ALT2611 is a 36-month bond denominated in USDT (Tether) and issued by Alternative, a securitization fund based in Luxembourg and managed by Mikro Kapital.
Bitfinex launched the bond through its platform called ALT2611 Tokenized Bond, and was touted as a groundbreaking opportunity for capital raises.
Tokenized bonds like ALT2611 are digital representations of traditional bonds issued on the blockchain, offering 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, with subsequent trading available in denominations of 100 USDT.
It is important to note that the bond is not available to American citizens or individuals present in the United States.
The underwhelming response to Bitfinex’s tokenized bond has garnered criticism from the crypto community.
Novacula Occami, a prominent crypto trader, remarked, “Bitfinex’s first USDT bond issue is a flop,” suggesting that the USDT stablecoin is unlikely to dominate capital markets.
Meanwhile, Bitfinex’s first USDT bond issue is a flop. After a 15 day offer period only $1.5mm of $10mm was raised. Sorry Paolo, USDT ain’t going to dominate capital markets. BitFinex Securities Kazakhstan
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