Kevin O’Leary: NYC hotel wants to use a $400 million cryptocoin offering to sell ownership like a stock

Kevin O’Leary told CNBC on Monday he’s working on a deal to allow a “very prestigious brand hotel” in New York sell ownership in the company through a $400 million cryptocurrency offering instead of a stock IPO.

“There’s a big deal coming in New York in the next three weeks,” said the “Shark Tank”investor and chairman of the ETF firm O’Shares Investments. “It’s a $400 million coin issuance for a real asset you’ve heard of.”

However, O’Leary said he could not reveal the name of the hotel yet because of a nondisclosure agreement.

“Instead of a stock, a share, it’s a coin. With a smart contract approved by the SEC,” he said. “You will be an owner of a third of this hotel. If it works, it will be the first of its kind.”

Typical initial coin offerings sell digital tokens in companies but do not imply any ownership stakes like stocks.

O’Leary said the hotel asset-backed ICO he’s involved with would adhere to government securities rules and offer prospective investors the kind of marketing materials they get with stock initial public offerings…

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