The tZero initial coin offering (ICO) has revealed that institutional investors have committed more than $100 million in the first 12 hours of the pre-sales offer. Additionally, more than 10,000 subscribers have registered for accredited investor status via the Saftlaunch platform where the ICO is hosted. The overwhelming interest in the ICO apparently was the cause of a delay that saw the offer go live later in the day. tZero is a subsidiary of Overstock (NASDAQ:OSTK) and the creation of Overstock creator Patrick Byrne.
Revealed yesterday, tZero is claiming to be the “first-ever preferred equity security token” to be issued and traded. The tZERO security token is being issued pursuant to a comprehensive offering memorandum, rather than with a traditional white paper, similar to other public offerings.
The features of the tZERO security token are those of a preferred equity security, including a token dividend expected to be paid from adjusted gross revenue of tZERO. The company also intends to provide tZERO token holders discounts for trading on its ATS and additional rewards and discounted services across the Overstock portfolio of companies.
“Yesterday Overstock and tZERO made history once again in launching the first-of-its-kind preferred equity security token,” stated Joe Cammarata, tZERO’s president. “This is a massive collaborative effort of our team and our advisors (including Alchemist, and RenGen) along with our outstanding legal, tax and compliance teams. We have received overwhelming interest from subscribers and are registering over 200 per hour, and in an abundance of caution to ensure the presale is conducted right, we experienced some minor delays. Today I am proud to announce that in under 12 hours, we have received commitments from accredited investors for over $100 million USD. We are working with world class institutions as well as some of the world’s most sophisticated cryptocurrency investors, who demand excellence and this is what we are delivering. We expect accreditation verification to continue. Verified investors will receive their documents and SAFE agreements as the allocations are completed.”
The company expects the token pre-sale to be oversubscribed shortly. Tokens issued will be available to accredited investors in the public sale beginning in January.
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