Overstock.com’s blockchain subsidiary, tZero, raised $134 million in an ICO. Tzero was released in 2015 and represents an alternative trading system for securities.
Another announcement was issued in last few days that a Chinese private equity company GSR Capital, is investing $270 million in tZero. $104 million in Overstock.com stock is included in the deal, as well as $30 million in tZero tokens.
Oversotck.com’s plans include finalizing its blockchain alternative trading system and building such platforms all over the globe.
’’This funding will allow us to globally scale our blockchain capital market platform on a rapid timeline, ushering in an era of trust through technology for the global economy,’’ Saum Noursalehi, tZero CEO stated.
Overstock.com’s share is said to be around $38 million before the market closed on Thursday. And even though the ICO is one of the biggest at the moment, tZero initially planned to raise $250 million. The plausible explanation for this plan gone bad is regulatory scrutiny. A representative of the company explained that they had problems with these regulations and that that could be one of the reasons as to why their goal failed.
In documents from March, Overstock disclosed that the SEC plead “certain documents related to the Offering and the Tokens” for its investigation that involve companies which are responsible for the flourishing of ICO market in 2017.