Overstock's tZERO Subsidiary to Start Releasing Tokens to Investors

  • tZERO, a security token trading platform, has reportedly started giving its shareholders control of tokens they purchased during a public sale last year.
  • tZERO is a subsidiary of online retailer Overstock.com and its portfolio company, Medici Ventures.

tZERO, a security token trading platform, has reportedly started giving its shareholders control of tokens they purchased during a public sale the company completed in August 2018.

$134 Million Generated From Token Sale

tZERO Group Inc., a subsidiary of online retailer Overstock, had informed its investors through an official company letter (sent Thursday) that they would be able to take custody of their tZERO security tokens. Saum Noursalehi, the CEO at tZERO, has outlined the first few steps that are required in order to acquire the tokens.

Notably, tZERO’s token sale had generated $134 million in August last year, and in October the company said that it had completed the issuance of its tokens. However, the tokens had been kept in a custodial wallet until January 10th, and they recently became accessible to investors..

Holding Tokens On "Behalf Of Investors" For 90 Days

Commenting on the token sale and issuance process, Noursalehi explained:

As you are aware, on October 12, 2018 we completed the issuance of the tZERO security tokens. The tokens have been locked up in wallets maintained by tZERO on behalf of our token holders for 90 days following the issuance. Now that the three-month lock-up period has concluded, you must decide where to hold your security tokens.

The letter from tZERO’s management noted that investors can open a brokerage account with any licensed dealer and the Dinosaur Financial Group, one of tZERO’s official partners. tZERO’s investors may also keep the tokens in their crypto wallets, which is secured by two-factor authentication (2FA) and other standard security features.

As mentioned in the company’s letter, investors can “initially choose to hold [the] security tokens in [their] personal wallet, [and] later move [their] tokens into a digital securities brokerage account” which can be opened with Dinosaur Financial. At present, it is unclear when tZERO will start trading the security tokens on its platform. However, the firm’s letter stated: “look out for another tZERO update regarding the commencement of security token trading.”

tZERO Valued At $1.5 Billion

After releasing a prototype of tZERO’s security token trading platform in April 2018, Jonathan Johnson, the company’s head of blockchain development efforts, had told Coindesk in December (of last year) that the production version of the exchange would go live in January 2019.

As CryptoGlobe reported in August 2018, Overstock’s shares had surged after a Chinese firm had announced a $270 Million investment in the online retailer’s tZERO subsidiary. The investment company had also planned to acquire $30 million worth of tZERO security tokens from Overstock.

Last year, tZERO had been valued at around $1.5 billion, meaning that the $270 million investment gave GSR Capital, the China-based investment company, an ownership of 18% of the Overstock subsidiary.

TRON’s Justin Sun Giving Away $1.2 Million for UBI, 50,000 TRX to Telegram Group

Michael LaVere
  • TRON's Justin Sun is supporting US presidential candidate Andrew Yang's UBI by giving $1.2 million to 100 people in 2020.
  • Sun and the TRON Foundation also announced a 50,000 TRX ($75K) giveaway through the official TRON telegram group.

TRON founder Justin Sun has announced that he will be giving away $1.2 million to 100 people next year to support U.S. presidential hopeful Andrew Yang’s universal basic income (UBI) program, in addition to kicking off a 50,000 TRX ($75K) giveaway for users of the cryptocurrency’s Telegram group. 

Sun Supporting Andrew Yang’s UBI

Sun, who paid $4.6 million earlier in the year to host a charity lunch with Warren Buffett, has now pledged to give $1.2 million to 100 people in 2020. TRON's founder also announced that one of the 100 selected for the giveaway will be invited to his charity lunch, which was originally postponed after Sun came down with kidney stones. 

Sun has asked U.S. presidential candidate Andrew Yang for assistance in the selection process. Yang, who has a background in entrepreneurship, has built his campaign upon the idea of universal basic income (UBI), which would guarantee U.S. citizens a monthly stipend. In addition to championing the idea on the campaign trail, Yang has pledged to distribute $1,000 per month to 10 people for the next year. 

Sun has taken the movement a step forward, by pledging to support 100 people at $1000 per month for the entirety of 2020.

TRX Telegram Giveaway

In addition to promoting UBI and Andrew Yang’s cause, Sun also announced the start of a 50,000 TRX giveaway, worth $75K, for community members using TRON's telegram channel. According to tweets published by Sun and the TRON Foundation on Sept. 16, TRON supporters can gain TRX by joining and inviting others to the coin’s official Telegram group. 

In order to qualify for the promotion, users will need to engage in a conversation with the @TRONEnBot through the telegram application. From there, the TRX payout will be tied to the number of invited users who join the Telegram group. The first and second place prize are worth 5000 and 2500 TRX, respectively, with the remaining 32,500 TRX being split among the rest of users.

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