Less than 24 hours ago, Overstock.com – the online retailing giant – showcased a prototype of a trading platform their development team has been working on called tZERO. The project has a private offering for the tZERO Security token (TZRO) that is currently in progress. It was extended till May 14th this year from an earlier deadline of March 1st.
According to the tZERO website, they will enter into Simple Agreements For Equity (SAFEs) only with accredited investors pursuant to the terms and conditions set forth in the Offering Memorandum, dated March 1, 2018, for the Token Sale.
Also according to the website, tZERO’s Security Token front end is designed to trade security tokens in an easy, compliant, and user-friendly manner. This system is integrated with tZERO’s existing 15c3-5 risk management software, order management system, matching engine, and a plethora of proprietary technology to support the eventual trading of security tokens.
The demonstration of the prototype of the platform is meant to reach out to the cryptocurency and regular securities trading community for input, questions, comments and ideas for improvement – ahead of the final launch in May. They too are operating on a regulation grey area as they await SEC guidelines on the whole industry of cryptocurrencies and security tokens.
So far, Overstock has raised $250 Million from its private offering and this amount is expected to grow with a month till it ends.
The tZERO token (TZRO) is an ERC20 token that will be offered as a security to qualified investors in accordance with US and other laws. The token will pay 10% adjusted gross revenue to token holders on a quarterly basis. TZRO joins other dividend based tokens that were used to fund exchanges such as Bankera (BNK) and KuCoin Shares (KCS).
Bankera pays its dividends to investors on a weekly basis whereas KuCoin does its payment on a daily basis. All this is possible through the ever amazing smart contracts available in the cyrpto-verse.
To note is the constant enthusiasm by regular companies dealing in traditional business, venturing into the world of cryptocurrencies and blockchain. Overstock also joins the Rockefeller arm of investing, Venrock that recently partnered with Coinfund, in this trend of doing so.
Perhaps Bill Baryhdt was right when he said, All Hell Will Break Loose in crypto this year.