Daydream Island owner ponders a cryptocurrency-backed deal

Facelift and renovations

A month after the planned tokenisation, the island sold for $50 million.

Shanghai-based CCIG, an investment firm, has been toying with the idea of a facelift for Daydream before having to fork out nearly $100 million on renovating the island, part of the Whitsundays, after Tropical Cyclone Debbie last year.

As the cost of managing and upkeeping Daydream Island and its resort, the 296-room Daydream Island Resort and Spa rose, CCIG is understood to have considered selling it or de-risking future development through introducing investors or raising cash through a coin offering.

Tokenisation or a digital coin offering is an emerging trend in the US and Europe, and like traditional securitisation, transforms illiquid large assets like real estate into tradeable stocks. In Australia, it is almost non-existent.

“When the idea was flagged to me, I thought it was a bit crazy,” a private fund manager told The Australian Financial Review.

Risks for owners

“This is because it means the actual owners of the asset assume all the development risks but have no real ownership of the asset.

“Tokenisation can also result in a real over-inflation in the asset’s value given the volatile nature of the token market.

“I think there is future to this in Australia once the cryptocurrency sector becomes more rational.”

In the case of Great Keppel Island, the sale price of $50 million was significantly under the proposed $US220 million raising through the issue of 500 million tokens tradeable on existing cryptocurrency exchanges.

CCIG bought Daydream Island for about $30 million in 2015.

Read More

Did you like this?
Tip Cryptos UK with Cryptocurrency

Donate Bitcoin to Cryptos UK

Scan to Donate Bitcoin to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Cryptos UK

Scan to Donate Bitcoin Cash to Cryptos UK
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Cryptos UK

Scan to Donate Ethereum to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Cryptos UK

Scan to Donate Litecoin to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Cryptos UK

Scan to Donate Monero to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Cryptos UK

Scan to Donate ZCash to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some ZCash:

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.