tZERO, a subsidiary of Overstock(NASDAQ:OSTK), will kick off its Initial Coin Offering (ICO) on December 18th. tZERO is accepting registrations now. tZERO described the token as a utility to pay for fees and services with the tZERO ecosystem. The token will also include revenue participation in the form of a distribution, somewhat similar to a dividend, based off of a percentage of tZero’s revenue. tZERO will be using a SAFT structure or Simple Agreement for Future Tokens – the most popular vehicle to issue tokens in a crowdsale.
tZERO is a distributed ledger technology (Blockchain) for financial markets. tZERO claims to be the first SEC and FINRA compliant ATS platform that seeks to transform the ICO market with compliant trading and investing.
Joseph Cammarata, President of tZERO, said the interest in the tZERO token has been overwhelming calling the crypto unique and exceptionally innovative.
“tZERO enabled Overstock.com to make history with the first ever public issuance of a digital security,” said Ralph A. Daiuto, Jr., Chief Operating Officer of tZERO. “tZERO has been at the forefront of blockchain technology and is going to be a leader in the trading of digital tokens.”
tZero said the terms of the ICO will be set forth in an Offering Memorandum. For payment instructions and information on how to participate in the tZERO token sale prospective investors should visit Saftlaunch and follow the prospective investor verification instructions.
Back in December of 2016, Overstock issued its own shares using the tZERO technology in a move the proved the viability of the technology. In the most recent quarterly report for Overstock the company provided insight into the expectations of tZERO, republished below:
Regarding tZERO: we intend to proceed with our ICO, but the form the ICO will take has evolved:
- As you know, for 4 years we have been at the forefront of nearly every major development in the area of Blockchain and capital markets. Due to our vision and unique structure and a focus on maintaining that leading edge, we are offering what we view as a truly revolutionary construct for the tZERO ICO.
- Our token will be a Security Token with a unique characteristic, in that it will have a Utility function which can be used throughout tZERO’s growing suite of products and ecosystem.
- We anticipate that the ICO will be issued as a Security Token and offered as a private placement pursuant to an exemption from the registration requirements of the U.S. Securities Act.
- Our team has worked diligently to design the token to ensure that it will be tradable on our U.S.-regulated ATS operated by one of tZERO’s subsidiary FINRA Broker Dealers.
- We are working with our strategic, financial and legal advisors to structure the unique features of the tZERO token to provide the utmost flexibility and value for purchasers. We currently contemplate that the token’s features will include:
- a right to share in a portion of tZERO’s top-line revenue (with such payments deposited into holders’ digital wallets);
- utility to pay for fees on the ATS, with a reduced fee schedule for token holders;
- additional utility features and functionality that will be announced at a later date.
- The proceeds of the pre-sale will be used, among other things, for strategic acquisitions and enhancements to the tZERO platform.
- Since announcing our intention to do an ICO on October 24 we have been overwhelmed with interest. The feedback we have received is positive, and many have expressed questions or concerns about the approaching Hard Fork, which as of today is a question. To that end we have decided to defer to the wisdom of the crowd, and address any uncertainty in committing to a firm ICO date. Therefore, we have decided to move the ICO pre-sale process out to allow for broadening the registration of all interested participants and account for any uncertainty regarding the potential fork.
- tZERO expects to launch the ICO process around November 30, 2017, subject to market conditions and regulatory developments.
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