Trading Is Live on Overstock’s tZERO Security Trading Platform

Overstock’s tZERO security trading platform, which was announced back in 2014, has officially begun trading this week, effectively allowing accredited investors to trade tZERO tokens through Dinosaur Financial Group, which is acting as a customer-facing broker-dealer.

According to CoinDesk a tZERO subsidiary, Pro Securities LLC, is facilitating the trade through the alternative trading system (ATS). The system reportedly offers users a securities clearing and settlement platform based on blockchain technology. TZERO is reportedly set to help companies raise capital through security tokens, while “enabling secondary liquidity for traditionally illiquid investments.”

 As CryptoGlobe covered, the trading platform was reportedly ready to go live last week, but waited for user signups to be processed. Per CoinDesk days before the launch the company’s Telegram had users claiming the registration process was taking “several days to complete.”

TZERO’s users reportedly added that communications with Dinosaur were prolonged, with wire transfer confirmations “taking days to arrive.” Mark Nelson, an investor who spoke to the publication, was quoted as saying:

I signed up last week, and tokens listed as pending transfer today. I expect them to be tradable tomorrow. The account is open so it is approved, just waiting on the completion of the token transfer.”

Notably Overstock has been looking to launch tZERO for years. In August of last year, it concluded a months-long token sale that saw it raise $134 million. The sold tokens were kept on a custodial wallet until January 10.

While initially the platform only lets users trade its native tZERO tokens, in the future it’s looking to add 60 different companies. Elio Motors, a company producing three-wheeled cars, is said to be one of them.

Back in September, Overstock revealed it was set to start selling bitcoin on its website through a biometric cryptocurrency wallet called Bitsy. In November, Byrne noted he’s planning to sell Overstock’s decades-old retail business, to go “all-in” on crypto through Medici Ventures, its blockchain fund.

As covered Overstock made headlines earlier this year after becoming the first company to pay a ‘portion’ of its taxes in Ohio using bitcoin. This, taking advantage of a move the state made back in November.

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Trans-Fee Mining Crypto Exchange 'FCoin' Insolvent After Mistakenly Being Too Generous

One of the first cryptocurrency exchanges to adopt the controversial trans-fee mining (TFM) model, which has been called a “disguised ICO” has paused trading and withdrawals over a shortage of crypto worth up to $130 million.

According to a statement published by FCoin’s founder Zhang Jian, a former Huobi CTO, the exchange is now unable to process withdrawals as its reserves are down by between 7,000 to 13,000 bitcoin, worth over $130 million at press time, over an issue that’s “a little too complicated to be explained in a single sentence.”

Zhang’s statement details the cryptocurrency exchange wasn’t hacked, nor is it pulling an exit scam on its users. He detailed that an internal system error gave users more mining rewards than they should have received, noting the error wasn’t detected for a long period of time.

The transaction-fee mining model, which saw FCoin’s trading volume surpass $5 billion per 24 hours numerous times, sees the cryptocurrency exchange incentivize trading via its own token, FT. FCoin reimbursed users for transaction fees paid in BTC or ETH with FTs until 51% of the coin’s supply was distributed, and redistributed 80% of the BTC and ETH it collected to those holding FT tokens.

The controversial model drew criticism and saw Zhang defend it, claiming it was a misunderstood invention. At the time, he said:

If you look back at history, all new things were not recognized at the beginning. Many were believed to be fraud. Jack Ma was recognized as a fraud when he first promoted the internet in China.

Various cryptocurrency exchanges started adopting the TFM model shortly after, with research showing these platforms had unusually thin order books and low traffic taking into account the trading volumes they had.

According to Zhang, the errors in FCoin’s system gave away too many tokens in mining rewards from mid-2018 to mid-2019, when a complete back-end auditing system was implemented. As throughout 2019 the price of FT kept on dropping, Zhang and his team reportedly used their own funds to buy back tokens and drive up demand, a decision he claims was an error.

This, as it gave users a chance to sell their FT tokens and withdraw as much as possible from their accounts, while FCoin bought up tokens that kept on losing value. Zhang’s announcement came shortly after FCoin suspended its platform over a risk-control issue.

Zhang is now reportedly manually processing users’ withdrawal requests sent via email. The founder of the exchange claimed he will “switch tracks” to start again, and noted he hopes he can use the profits made from new ventures to “compensate everyone for their losses.”

Featured image via Unsplash.