tZERO, which is the blockchain subsidiary of major e-retailer Overstock.com, has recently opened its global $250 million Initial Coin Offering (ICO) to accredited investors.
The offering consists of two parts, the Pre-Sale Period that ends on January 18, 2018, after which the Subsequent Sale Period runs through February 16, 2018. tZERO will treat the Tokens as preferred equity in the Company.
Under the deal, tZERO will enter into Simple Agreements for Future Equity (SAFEs) with strategic purchasers identified by the Company as accredited investors.
“Overstock is proud to be the market-leading enterprise embracing the cryptorevolution,” Overstock CEO Patrick Byrne said in a statement. “Beginning with the ‘pre-sale’ round, I am confident that prominent investors from around the globe will propel tZERO toward achieving its mission of bringing greater efficiency and transparency to capital markets.”
tZERO CEO Joe Cammarata is also looking forward to the brighter future. “With this first ever regulated security token, we are entering a new world of capital formation that I believe will become Wall Street 2.0,” he said.
What can you do with tZERO tokens?
In a word little, as they will be treated as preferred equity in the Company.
But… tZERO is mulling a few benefit ideas to provide holders of the tokens in the future. These, what they call “Discretionary Benefits,” may take many forms including, such as discounts on certain future products and services, as well as complimentary memberships in Overstock’s rewards program, Club O, for those buying 100 Tokens or more. Nonetheless, tZERO isn’t making any guarantees, saying that Discretionary Benefits will be decided solely by the Board.
Overstock accepts 40 different cryptocurrencies
Meanwhile, we know that when it comes to cryptocurrency adoption, Overstock is the clear leader, having started to accept Bitcoin payments back in early 2014.
What’s more, today the retailer accepts 40 different cryptocurrencies, including Ethereum, Litecoin, Dash, Monero and Bitcoin Cash, among others. This in turn, makes cryptocurrencies the real money — you can use them to buy just about anything from Overstock’s vast inventory.
So do we like the news? Damn right we do. We would like to see other major companies taking a cue from Overstock’s book. I’m looking at you, Amazon. We had enough rumors… 🙂