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Sonakshi Saxena
Nov 29, 2023
by Sonakshi Saxena

Bitfinex Bond, Tether's Capital Raise Stumbles

Tether's Capital Raise

Table of contents

  1. ALT2611 Tokenized Bond Faces Skepticism Amid Lackluster Market Performance
  2. Extended Offer Period: Bitfinex Strives to Salvage Tether Bond Initiative
Bitfinex's highly anticipated ALT2611 tokenized Tether bond, heralded as a revolutionary approach to capital raises, has fallen short of expectations, managing to secure only 15% of its $10 million target two weeks after its November 15 launch. The bond, denominated in USDT, aimed to raise funds through the issuance of 100,000 ALT2611 tokens, with a minimum initial purchase size of 125,000 USDT. Despite its bold promise to usher in a "new era for capital raises," the offering has struggled to attract investors, raising a mere $1.5 million during the initial two-week period.

ALT2611 Tokenized Bond Faces Skepticism Amid Lackluster Market Performance

ALT2611, a 36-month 10% coupon bond, is issued by Alternative, a Luxembourg-based securitization fund managed by Mikro Kapital. The tokenized nature of these bonds, facilitated on the Liquid Network, a high-throughput Bitcoin sidechain, is designed to offer advantages such as liquidity, accessibility, security, transparency, and 24/7 trading compared to traditional paper bonds.

The news of the underwhelming performance has drawn skepticism from the crypto community. Notably, crypto trader Novacula Occami remarked, "Bitfinex’s first USDT bond issue is a flop," expressing doubt that Tether's USDT could dominate capital markets. Occami further stated, "BitFinex Securities Kazakhstan isn’t keeping investment bankers up at night."

Extended Offer Period: Bitfinex Strives to Salvage Tether Bond Initiative

Despite the setback, when the tokenized bond was initially launched, Tether's Chief Technology Officer, Paolo Ardoino, had optimistically labeled it a "new era for capital raises." Ardoino envisioned USDT becoming the "underlying denomination asset of this new financial system."

In response to the lackluster performance, the offer period for the ALT2611 tokenized bond has been extended by an additional two weeks, allowing Bitfinex Securities more time to attract investors and reach its ambitious fundraising target. The outcome of this extension will be closely watched as it could signal broader trends and perceptions regarding the viability of tokenized bonds within the cryptocurrency market.

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bitfinex Tether's Capital Raise
Bitfinex Bond, Tether's Capital Raise Stumbles
Sonakshi Saxena
Sonakshi is into the crypto world ever since she heard about it and is pursuing her interest through Cryptoknowmics. She is a sensational poet, technical writer and content strategist.

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