WI: Joseph I, Jewish King of Cyprus and patron of Palestinian Jews

Joseph Nasi was a sixteenth-century Jewish businessman and diplomat, originally from Portugal, who ended up as a diplomat and imperial confidante in Constantinople and even received the title of Duke of Naxos from the Ottoman Sultan. From David Abulafia's The Great Sea: A Human History of the Mediterranean:

Joseph looked beyond the Aegean. He developed a scheme to encourage Jewish settlement in Tiberias, in Galilee. The mystically inclined Sephardic Jews of nearby Safed lacked a solid source of income, though they attempted to promote a textile industry and even printing; the duke of Naxos saw their salvation in silk, and proposed to plant mulberry trees. He also arranged for Spanish wool to be sent across the Mediterranean to Tiberias, in the hope of stimulating a woollen cloth industry in imitation of the expanding cloth industry of Venice. He wanted to attract settlers from as far away as Italy, for a renewed bout of persecution in the Papal States stimulated hundreds of Jews to set out for the more tolerant Ottoman lands of the East.

[...]

The sultan was prepared to listen to him once again, though, in 1569, while the Ottomans were planning the invasion of Cyprus. When a massive explosion destroyed the powder pump in the Venetian Arsenal in September of that year, along with four galleys, colourful rumours attributed what was almost certainly an accident waiting to happen to the malign machinations of the Jew of Naxos. Still, he had grudges against Venice, which had treated his famous aunt badly, and which aspired to control his islands in the Cyclades. Selim the Sot, in his cups, is said to have promised Nasi the ultimate prize: the crown of Cyprus, which the Ottomans decided to pluck from Venetian hands, and the story was embroidered further with tales that he commissioned a crown for the great day of triumph, and had a banner made bearing the inscription "Joseph Nasi, King of Cyprus."
Any hope of Nasi succeeding in his plans?
 
Why didn't Nasi succeed with his first settlement scheme in OTL?

Why didn't he get the crown of Cyprus? Did this proposal by Selim II actually happen?
 
Top