tZERO which is a subsidiary blockchain of Overstock, an e-commerce retail giant made an announcement on Monday 6th August that the company will end its month’s long STO (Security Token Offering) with no further plans to extend the process further.
Since its beginning, tZERO has mastered the effort to bring greater efficacy and transparency to capital markets through the way of integrating blockchain technologies.
The investors with fully accomplished SAFEs (Simple Agreements Of Future Equity) will have to consign their money to tZero till 5 PM EDT by Wednesday. The company also revealed that on Thursday, 9th August 2018, during Overstock’s earnings call, the substratum will broadcast the results of Security Token Offering. tZero has still not revealed the amount which the company managed to raise during the STO round as earlier the maximum amount of tokens was originally limited to $250 million by the company.
Last year in December, the company primarily brought in Security Token Offering in the form of an ICO (Initial Coin Offering). By targeting traditional institutional interest and offering strong crypto, the company ends up committing $100 million in the first 12 hours from the launch of the process to the platform.
In the month of March 2018, tZERO’s ICO fell under the inspection of US Securities and Exchange Commission (SEC) which caused the Overstock share’s price to fall a bit. Preceding this the Overstock had to file as traditional security but its mistake was that it filed under the Rules and regulations of D and S. Now this mistake caused to the company itself as now the citizen of US must be authorized to invest in ICO and other offshore transactions could not involve any interference from the U.S citizens.
Later in the month of June 2018, the company signed a letter of intent with an investment company named GSR Capital (Beijing) for the purchase was of tZERO Security Tokens of worth $160 million at the price $10.00 per token. With this deal, tZERO also entered into executed SAFEs in excess of $168 million Security Token Offering.
Primarily this year in April tZERO brought in the prototypes of its security token for the trading platform. The main motive for developing such kind of system was to bridge the gap between orthodox finance sector and blockchains as the security tokens would be backed by original assets.
The manifesto will supposedly enable the traders to transact tokens in a docile, authentic, user-friendly and smooth way. It also includes some features like management of risk, technical know-how, a proper management system and much more.
The post effects of this move will not be certain. It will be interesting to see how this whole thing will be planned out and executed.