Cryptocurrency play behind Great Keppel Island's $300 million development proposal
A cryptocurrency consortium plans to resurrect luxury resort plans for Great Keppel Island.
Great Keppel will become the world’s largest island cryptocurrency micro-economy, a project that could bring the new digital economy to the bricks-and-mortar mainstream.
Investors will be invited to buy so-called Great Keppel Island Tokens in order to fund the $300 million development through what is known as a Security Token Offering, similar to an initial public offering for shares.
The tokens will be tradeable on existing cryptocurrency exchanges.
Under the deal, the owner of the existing defunct resort at Great Keppel Island, Tower Holdings, will retain 12% of the GKI Tokens.
Tower Holdings, which owns more than 70% of Great Keppel Island, is owned by Sydney businessman Terry Agnew.
The GKI Tokens will be backed by the value of the development.
Building is expected to start next year and be completed within five years.
The STO is being marketed with a flashy sales video starring Greg Norman, who is designing the development’s golf course.
"The development is fully supported from all levels of Australian government, federal, state and local, and has approval for the immediate development of an 18-hole international golf course," says the video.
"Also approved are 750 luxury villas … 300 luxury apartments and a five-star beachfront resort with 250 rooms and a 250-berth marina."
Tower Holdings’ chief executive officer, Anthony Aiossa, told Fairfax Media even with all the approvals in place, Tower had difficulty raising the funds to develop the site until it was approached by someone proposing the cryptocurrency consortium earlier this year.
He said the company had to do homework into cryptocurrencies before it seriously considered the deal.
It is expected that a white paper, similar to a prospectus, will be released on Friday or Monday, with the minimum likely to be more than $100,000, while those buying in during the retail round might have to meet a minimum of around $1000.
"I think to get a lot of people involved is a wonderful idea," the unofficial mayor Jeff Mercer told Ross Greenwood's 2GB Money News.
The island is a small active township with 18 private homes, he said, adding that the island wasn't closed.