Online retail giant Overstock.com’s blockchain subsidiary tZERO has received over $100 million in commitments from investors in the first 12 hours of its token presale.
The pre-sale launched on December 18. With this overwhelming response, tZERO expects the token pre-sale to be oversubscribed shortly. The company said that a significant portion of the tZERO security tokens issued will be available to accredited investors in the public sale, scheduled to launch in January 2018.
tZERO will treat the tokens as preferred equity in the company. According to the official release, over 10,000 subscribers have registered for accreditation verification through Saftlaunch.com within weeks of the token announcement.
“Yesterday Overstock and tZERO made history once again in launching the first-of-its-kind preferred equity security token. This is a massive collaborative effort of our team and our advisors (including Alchemist, and RenGen) along with our outstanding legal, tax and compliance teams. We have received overwhelming interest from subscribers and are registering over 200 per hour, and in an abundance of caution to ensure the presale is conducted right, we experienced some minor delays. Today I am proud to announce that in under 12 hours, we have received commitments from accredited investors for over $100 million USD,” Joe Cammarata, tZERO’s president, said.
tZERO said that the tZERO security token is properly issued as a security. It has features of a preferred equity security, including a token dividend paid of Adjusted Gross Revenue of tZERO. In addition, the company intends to provide tZERO token holders discounts for trading on its ATS and additional rewards and discounted services across the Overstock portfolio of companies.
“One significant difference between ICO utility tokens issued by startups with no functional business and the tZERO security token is that the tZERO security token is being issued pursuant to a comprehensive offering memorandum, rather than with a traditional white paper,” the release said.
