By Josiah Wilmoth
Overstock chief executive Patrick Byrne has announced the details for the much-anticipated initial coin offering (ICO) for tZERO’s SEC-compliant token exchange. The exchange will introduce increased liquidity to the token markets, and the tZERO ICO is expected to set a new record for crowdsale fundraising.
Overstock Reveals Details of tZERO ICO
As Strategic Coin has reported, online retailer Overstock has positioned itself as a leader within the blockchain ecosystem through the establishment of Medici Ventures, an investment subsidiary that acquires fintech startups. Last month, Overstock announced that one of its portfolio companies, tZERO, had entered into a joint venture to establish the first ICO marketplace that will comply with SEC and FINRA regulations governing securities trading.
The development of tZERO’s alternative trading system (ATS) will be funded through an ICO. Overstock chief executive Patrick Byrne announced the details of the tZERO ICO at the Money 20/20 conference in Las Vegas, revealing that it will open to investors on November 15 and last until December 31.
To ensure regulatory compliance, tZERO and investors will enter into a simple agreement for future tokens (SAFT), a contract that obligates the ICO organizer to provide them with tokens by a specific date.
tZERO Embraces the ‘Security Token’ Label
The tZERO token will be classified as a security token, meaning that only accredited investors will be able to participate in the ICO. Significantly, the security classification allows tZERO to assign features to the token that utility token developers cannot. For instance, the token will entitle investors to a percentage of tZERO’s quarterly profits. Platform users will also receive a discount on trading fees if they pay with tZERO tokens rather than U.S. dollars.
“Three years ago I…told the world that the main event of Bitcoin is not Bitcoin, it is the Blockchain, and it would change the world,” said Byrne. “While many doubted, the tZERO team worked hard to be at the tip of the spear in creating and launching credible, capable and institutionally scalable blockchain technologies for crypto assets. Today those efforts are attracting interest from both the crypto community and the largest global institutional funds.”
Byrne anticipates that the tZERO ICO will attract unprecedented contributions from institutional investors, enabling the firm to “raise a fortune”, potentially as much as $500 million. At present, the ICO fundraising record is held by Filecoin, a decentralized cloud storage provider that recently concluded a $257 million token generation event.
Strategic Coin is your go-to source for information about launching and participating in utility token ICOs. Whether you are a start-up or existing business that desires to enlist the help of a professional utility token ICO advisor or a token buyer who needs help navigating the blockchain space, Strategic Coin will provide you with the resources you need to take advantage of market opportunities within the crypto marketplace.
Featured Image from Jon Southurst / Twitter