A press release published on the 29th of June reports that tZero which is a subsidiary of overstock.com and a security token exchange will be making a massive sale of Security Tokens. It says that they have already signed a letter of intent for $160 million in tZERO Security Tokens with investment company GSR Capital.
GSR Capital which is based in Beijing is to purchase the security token at a price of $10.00 per token. The Security Token Offering (STO) of tZERO is expected to last till August 6, 2018. The date extension was necessary to accommodate investment from GSR Capital.
The press release further revealed that tZERO had also entered into various executed Simple Agreement for Future Equity (SAFE) worth over $168 million for Security Tokens. More than 60% of the total sum has already been funded. About 1,000 people from 30 different countries took part in the token sale.
Reacting to the investment deal, The founder, and CEO of Overstock.com and the Executive Chairman of tZERO, Patrick Byrne said that the company saw the extraordinary potential of blockchain many years before now. They have since then strived to build tZERO into a company that will make the capital markets both efficient and transparent.
Backed By Real Assets
Security tokens are backed by real assets like commodities, shares, or equity. They serve as a bridge between blockchain and the traditional finance sector. The prototype of the tZERO security token trading platform was first released in April. tZERO aimed at introducing a means of trading that is easy and user-friendly with amazing features like an order management system, a risk management software and a matching engine among many others.
The U.S. Securities and Exchange Commission’s (SEC) scrutinized tZERO’s initial coin offering (ICO) in March, and this resulted in the drop of Overstock’s shares. After that Overstock.com filed for its ICO not to be classified under traditional securities but
under Regulations D and S. This implied that those who invested in the ICO must be accredited U.S citizens and that US citizens must not be involved in offshore transactions.
The filing released by the SEC reported that tZERO’s ICO raised $100.6 million from 1,100 investors from the time it was launched in December of 2017. It went ahead to say that the maximum amount of tokens to be issued is $250 million.
Posted from my blog with SteemPress : https://smartereum.com/21654/tzero-makes-move-to-purchase-160-million-in-tzero-security-tokens-that-are-backed-by-real-assets/