Mr. Wonderful’s Plaza Hotel ICO About to Check Out?

Mr. Wonderful’s Plaza Hotel ICO About to Check Out?

Last month Kevin O’Leary, aka  “Mr. Wonderful” from the American television series Shark Tank, announced that he was involved in a “huge” ICO for a “very prestigious brand hotel,” and one which he couldn’t name due to a non-disclosure agreement.

The deal was widely thought to refer to the proposed purchase of the Plaza Hotel in New York City by the Chimera group of foreign investors led by Shahal Khan, founder of mining company Colt Resources Middle East.

Not So Wonderful After All

Now it seems that the deal, described by O’Leary as “the first of its kind” may not happen.

The Chimera group had planned to launch the “Plaza Token” to allow token-buyers to own a piece of historic real estate. More specifically, it planned to allow those investors to buy Chimera’s debt once the group completed the purchase. To sweeten the deal for potential investors, token-holders would be eligible for “certain concessions” at the hotel.

Sources have told Business Insider that the purchase would first require $675 million to be raised, with the next step, the Plaza token ICO, a way to pay off the debt.

However, it appears that the deal has either fallen through or may be about to. Raising the initial $675 million is proving more problematic than expected, and investors are apparently walking away. Without sufficient investor momentum the scheme looks dead in the water.

Even Mr. Wonderful’s participation is in doubt. Multiple sources have informed Business Insider that “O’Leary is not directly involved in the deal, yet.

The hotel has been on sale since 2017 and was described by previous owner, and now U.S. President, Donald Trump as “the ultimate trophy in the world.” ICO investors may have to wait a little longer before they have a chance to own a piece of that ultimate trophy, or its debt.