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BREAKING: @tZERO is being spun off from parent company @Overstock.
This could be a watershed moment for the ATS to scale without public market pressure.
Don’t know the history between tZERO and Overstock? It’s time for a thread! https://www.crowdfundinsider.com/2021/01/171610-shares-in-overstock-jump-following-announcement-of-blockchain-spin-out-as-overstock-focuses-on-ecommerce/
This could be a watershed moment for the ATS to scale without public market pressure.
Don’t know the history between tZERO and Overstock? It’s time for a thread! https://www.crowdfundinsider.com/2021/01/171610-shares-in-overstock-jump-following-announcement-of-blockchain-spin-out-as-overstock-focuses-on-ecommerce/
Overstock was founded by @PatrickByrne in 1999, and was always on the cutting edge of tech.
As one of the largest e-commerce platforms in the 2000-2010s, the company was also an early Bitcoin adopter, accepting BTC as payment as early as 2014:
As one of the largest e-commerce platforms in the 2000-2010s, the company was also an early Bitcoin adopter, accepting BTC as payment as early as 2014:
That year, in addition to embracing BTC, the company launched @medici_ventures, a blockchain-focused accelerator to invest in and incubate industry-defining blockchain solutions.
Medici’s portfolio includes @Voatz, @Bankorus, and most notably, @tZERO.
Medici’s portfolio includes @Voatz, @Bankorus, and most notably, @tZERO.
After launching that same year, tZERO’s lofty goal was to launch an alternative trading system for blockchain-based securities (security tokens).
The firm conducted its own security token offering in 2017, raising upwards of $134M in exchange for a revenue split on trading fees.
The firm conducted its own security token offering in 2017, raising upwards of $134M in exchange for a revenue split on trading fees.
The token began trading under the TZROP ticker in January 2019.
In the years post fundraise, tZERO has been busy acquiring the licenses needed to operate an ATS, while connecting with third-party brokers to bring more investors to their marketplace.
In the years post fundraise, tZERO has been busy acquiring the licenses needed to operate an ATS, while connecting with third-party brokers to bring more investors to their marketplace.
To further drive adoption, Overstock distributed a security token dividend of its own shares to all public shareholders.
Essentially, any shareholder of at least 10 shares of the stock received an identical share of equity, except it was tokenized and only trades on tZERO.
Essentially, any shareholder of at least 10 shares of the stock received an identical share of equity, except it was tokenized and only trades on tZERO.
This forced institutional subscriptions to the tZERO ATS and led to viral success - both in new users & in prices that the token hadn’t reached on secondary markets since its initial fundraise. The OSTKO “digital dividend” became the second listed asset. https://twitter.com/STOmarket/status/1318927073789071360?s=20
tZERO was also able to list tokenized shares of @StRegisAspen via @AspenDigital, marking its third placed security on its ATS.
While the firm was making progress, many early investors still felt that only three trading assets over multiple years of operation was not enough.
While the firm was making progress, many early investors still felt that only three trading assets over multiple years of operation was not enough.
Many theories have swirled around the lack of additional trading assets, but the reality is that investors need more volume to deliver on the value proposition of the TZROP asset - no revenue, no value.
The platform has built great traction, but needs to maintain its advantage.
The platform has built great traction, but needs to maintain its advantage.
tZERO CEO @Noursalehi has repeatedly noted the importance of bringing new assets to the platform for trade, even setting a goal for placing 5-10 digital assets on the ATS in 2020: https://www.businesswire.com/news/home/20190711005819/en/tZERO-CEO-Saum-Noursalehi-Issues-Statement-on-Company-Milestones-Planned-Roadmap-for-2019
If the delay had anything to do with additional scrutiny that the firm has faced through its publicly-listed parent Overstock, those fears should now be quelled.
With more flexibility, the firm is positioned to take advantage of the security token boom coming in 2021.
With more flexibility, the firm is positioned to take advantage of the security token boom coming in 2021.
Hopefully this was helpful in understanding tZERO and Overstock’s history in the industry! If you enjoyed, a like and a retweet is appreciated!
Follow @STOmarket for all security token related news and data! We have spent the last 4 years researching and analyzing the industry!
Follow @STOmarket for all security token related news and data! We have spent the last 4 years researching and analyzing the industry!
Also, I post a weekly podcast called the Security Token Show ( @TheSTOShow) where my cohost @BelgianWig and I cover the industry news, market updates, and break down content like this, but in audio form!
Listen to the Security Token Show via any of the links below! 
Spotify: https://open.spotify.com/show/5su6cDTrpX6CR9jja4CmFs
Apple Podcasts: https://podcasts.apple.com/us/podcast/the-security-token-show/id1474287547
Youtube: https://youtube.com/c/securitytokenshow
Spotify: https://open.spotify.com/show/5su6cDTrpX6CR9jja4CmFs Apple Podcasts: https://podcasts.apple.com/us/podcast/the-security-token-show/id1474287547 Youtube: https://youtube.com/c/securitytokenshow
