Tether’s attempt at a ‘new era for capital raises’ fails miserably as Bitfinex bond flops

Tether's Bond Attempt for Capital Raises Fails Disappointing Beginning to Bitfinex's 'New Era

Bitfinex’s attempt to launch their Tether (USDT) tokenized bond has fallen flat on its face. Despite all the hype and fanfare, it seems that investors just aren’t biting.

Bitfinex Securities, the platform that deals with tokenized real-world assets (RWA), proudly announced its ALT2611 Tokenized Bond back in October. They thought it would revolutionize the world of capital raises. Well, it turns out their dreams were a little too ambitious.

After two weeks of begging for cash, only a measly $1.5 million has been raised. That’s a far cry from the $10 million they were hoping for. If this were a high school report card, it would say “needs improvement.”

It seems that Bitfinex Securities has extended the fundraising period for another two weeks. You know you’re in trouble when your fundraising campaign goes from sprinting to crawling.

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So, what exactly is this tokenized bond they were so excited about? Well, it’s a 36-month 10% coupon bond, all conveniently denominated in USDT. And who issued this bond? None other than Alternative, a fancy Luxembourg-based securitization fund managed by the illustrious Mikro Kapital.

Tokenized bonds are like the superheroes of the financial world. They’re the digital versions of traditional bonds, but with superpowers. They offer liquidity, accessibility, security, transparency, and even 24/7 trading. It’s like having Superman and Batman rolled into one.

But don’t get too excited, because this bond is not for the faint of heart. You can’t just stroll in with a pocket full of change. The minimum initial purchase size is a whopping 125,000 USDT. And once you have the bond, you can only trade it in denominations of 100 USDT. It’s like trying to buy a whole cake but being forced to eat it in tiny, bite-sized pieces. How frustrating!

And just when you thought things couldn’t get any worse, this bond is off-limits to our American friends. Sorry, folks, you’ll have to stick to baseball and apple pie for now.

One crypto trader, Novacula Occami, had some harsh words for Bitfinex. He said, “Bitfinex’s first USDT bond issue is a flop. Sorry Paolo, USDT ain’t going to dominate capital markets.” Ouch, that’s gonna leave a mark.

But Paolo Ardoino, Tether’s chief technology officer, was full of enthusiasm when this bond launched. He called it a “new era for capital raises” and boldly claimed that USDT would be the “underlying denomination asset of this new financial system.” Talk about shooting for the moon!

So, what can we learn from this botched bond launch? Well, for one, it’s a reminder that not every investment opportunity is a guaranteed success. Sometimes, even the biggest players can stumble and fall.

We reached out to Bitfinex and Tether for comment, but it seems they’re too busy licking their wounds to respond. Maybe they need some of that famous El Salvadoran Bitcoin bond to cheer them up. Those bonds have been performing solidly with a 70% return in 2023. Maybe Bitfinex should take notes.

And to all you digital asset investors out there, remember, not every bond is worth your time and money. So tread carefully and always do your due diligence. Who knows, the next big investment could be just around the corner. Keep your eyes peeled and your wallets ready.

Now, I’d love to hear your thoughts. What do you think went wrong with Bitfinex’s tokenized bond? Were they overly ambitious, or did they just miss the mark? Let’s start a lively discussion in the comments below!

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