Despite rumours to the contrary the TZero ICO opened on Monday. Whilst investors watching the countdown clock on SAFTLaunch.com thought there was a delay, it later emerged that the ICO was underway but that the white-papers were only being made available to accredited investors.
The ICO with an initial target of $250 million may turn out to be the largest ever. TZERO which is a subsidiary of Overstock.com is launching a platform to integrate secure distributed ledgers with traditional market processes.
They hope to reduce settlement times and costs in financial market operations. If they can get that right, it’s a highly lucrative business to be in.
“Accredited” Investors Only
The ICO pre-sale appears to be open only to investors the company deems to be “accredited strategic purchasers.”
Other ICOs such as Filecoin have been known to adopt the same approach which is generally done to facilitate compliance with SEC regulations around the sale of securities. However, it also helps ensure that the ICO attracts long-term investors and strategic partners only.
The pre-sale runs until January 18 with the sale period proper then running until February 18.
The platform marks a big change in strategic direction for Overstock.com which has until now operated as an internet retailer.
However, CEO Patrick Byrne, has been one of the most vocal supporters of cryptocurrencies and Overstock was the first major retailer to accept Bitcoin in 2014. He has hinted that he may consider selling the retail business to focus on the blockchain business.
Last week Morgan Stanley revealed that it had taken an 11.4 percent stake in Overstock. The bank’s involvement in the project seems to be giving it the credibility it needs to succeed. The stock price jumped 30 percent on the news, bringing its gains for the year to just under 200 percent.