Bitfinex Unveils Sales Pitch Alongside BnkToTheFuture, Target is to Raise $80 Million

Bitfinex has released today details about a Special Purpose Vehicle (SPV) investment opportunity alongside BnkToTheFuture, in the hopes of raising $80 million in funds to relaunch what it was the biggest Digital Assets trading platform by USD volume.

Seven days after Bitfinex told customers in a public announcement about the ‘imminent’ release of details over BFX Token-for-Equity exchange, the company has unveiled a sales pitch. Together with BnkToTheFuture, the company has set a target of €71,085,836 (account for $79,897,280 at the time of press) for its fund raise.

The sales pitch –which is not a business plan as the ‘business’ is already running– includes a comprehensive coverage of the important topics, questions, and concepts that such a big venture carries with. BnkToTheFuture’s platform will be used to allow ‘qualifying persons’ holding a minimum of 1000 BFX tokens (with a face value of $1000) to turn their tokens into ‘beneficial interests’ in Bitfinex (which includes IFinex Inc. and all of its subsidiaries).

Bitfinex is hoping to gain customer’s trust back, after losing close to 120,000 BTC in a computer hack. The sales pitch doesn’t reveal details of the theft, however, the document contains some words that are worth quoting:

Although we have substantially hardened our infrastructure, no solution can ever be 100% secure, which is why we have always had secondary and tertiary security measures in place. Among those security measures in use was a core integration with BitGo’s multi-signature wallet solution, which spectacularly failed us. Needless to say, this overly-complicated and poorly-supported implementation has been summarily replaced by a less complex, more manual, and more trusted hot/cold wallet solution.

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Among the hot topics addressed in the sales pitch includes a breakdown of Bitfinex’s profitability benchmarks, operating costs, and other relevant data for investors. According to the company’s  records, Bitfinex held market dominance before the hack, with over 42.6% global BTC/USD trading volume

The company acknowledges that in the past they have been ‘media-shy’, but present and future circumstances will require more transparency. In light of this, the company has included a full dossier of his core team members. The report also includes many ‘upcoming’ and ‘remain-to-be-seen’ features, upgrades and projects, including infrastructure updates, new product offerings like options markets, OTC trading, and more currency pairs.

Among the theorized ideas thrown around by the teams was the thought of acquiring or forming a bank. Bitfinex sees a ‘significant opportunity’ in creating a modern offshore ‘cyberbank’ where customers can open accounts with verified digital identities and can hold their fiat balances at Bitfinex. Can a company that lost the equivalent of more than $70 million in bitcoins run a cyberbank? Only time will tell.

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Eduardo Gómez

Eduardo Gómez is a Computer Science Major from Venezuela, a country with a loyal Bitcoin user base. He discovered Bitcoin in 2012 and now he use it to escape the triple-digit inflation that Venezuela suffers, he is focusing on developing a writing career, and he tries to keep up with the news in FinTech and Blockchain Technologies.

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