TZERO

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tZERO
Tzero.png
Founded 2016
Headquarters Midvale, UT
Key People Patrick Byrne, Chairman; Saum Noursalehi, CEO; Steve Hopkins, President
Employees 50-200
Products tZERO security tokens and trade platform; blockchain brokerage services, tokenized securities lending, digital brokerage, overnight alternative trading systems (ATS)
Twitter @tzeroblockchain
LinkedIn Profile
Website tZero Home

tZERO (or t0) is a blockchain-based platform for capital markets. It is a majority-owned subsidiary of Overstock.com, funded by another Overstock subsidiary, Medici Ventures, the company's blockchain venture fund. The tZERO trading platform was designed to combat naked short selling through the integration of blockchain technology. t0 is also the name of the company's security token.[1][2]

Products and Services

The company offers its customer-facing digital brokerage services through Dinosaur Financial Group, LLC, and its alternative trading system (ATS), through which it sells its digital tokens via another Overstock subsidiary, Pro Securities LLC.

Overstock has also been hired by the private firm GSR Capital to develop a securitized token for trading cobalt.[3]

tZERO's most distinctive function is DLR technology (Digital Locate Receipt), which uses a proprietary blockchain to lend transparency to the practice of short selling. The aim of this technology is to curb "naked" short selling.[4][5]

Mobile trading app

tZERO CEO Saum Noursalehi told Coindesk in March 2019 that tZERO was planning on launching a mobile payment application for buying and selling bitcoin, as well as Ether, potentially. The app is scheduled to launch in June and is being developed by a cryptocurrency startup called Bitsy.[6]

Bushnell token and the Atari movie

In July 2019, tZero announced that it had entered a partnership with film production and financing company Vision Tree, which was producing a movie about Nolan Bushnell, founder of the video game company Atari. To fund the movie, Vision Tree announced in 2018 that it would aim to raise $40 million through the sale of a digital token, which it had dubbed the "Bushnell token." tZERO announced that with the new partnership, it had agreed to develop the Bushnell token for Vision Tree.[7]

Company History

On June 5, 2015, Overstock announced it would offer the “world's first cryptosecurity,” on its new t0 platform. The name t0 comes from the Wall Street jargon for bond settlements, which typically take three days (“t + 3”) to finalize. According to company statements, bond trades on t0 settle the same day.[8]

tZERO had its first day of stock trading on its shared ledger on December 16, 2016.[9] The previous day, Overstock announced it had raised $10.9m in an offering comprising $1.9m worth of stock traded via digital assets on the t0 platform. Fifty-five people purchased a total of 126,565 shares for $15.68.[10]

In 2017, Patrick Byrne announced a joint venture between Medici Ventures (a subsidiary of Overstock.com) and Hernando de Soto, a notable economist to begin a new blockchain venture, causing a sharp spike in Overstock.com's stock value (OSTK).[11][12] This venture ended up being called tZERO.[13] Later that year, he announced development of tZERO's DLR, a financial technology that would be developed specifically to "curb naked short sales."[14] Byrne announced in late 2017 that he plans on stepping away from his role at Overstock.com, selling or restructuring the company so that he could focus on developing tZERO full-time.[15][16]

In May 2018, the company announced that Overstock.com CEO Patrick Byrne would be stepping down as CEO to become tZERO's executive chairman, while former president Saum Noursalehi would take over as CEO, in order to "accelerate" tZERO.[17]

In August 2018, Chinese private equity firm GSR Capital announced its plans to invest $270 million in tZERO, giving it an 18% stake in the company. The announcement also said that GSR Capital plans to invest approximately $104.55 million into shares of Overstock.com, which would give the firm a 10% stake in the online retailer.[18] Overstock.com announced, however, on March 1, 2019, that the investment had been delayed until mid-April 2019. The company reported that Makara Capital of Singapore will join the transaction as GSR's partner.[19]

ICO/STO

Patrick Byrne announced the tZERO ICO in October 2017. The ICO, which later became an STO, launched in December of 2017, and ended August 8, 2018.[20][21][22] It offered security tokens to "accredited investors only."[23][24]

tZERO minted its security tokens and issued them on behalf of the token investors on October 12, 2018.[25] In accordance with the terms of the 90-day lock-up requirement, tZERO released the tokens to investors starting on January 10, 2019. Investors could transfer their tokens to their own wallets or to a brokerage account with Dinosaur Financial Group, a broker-dealer. No plans for the launch of trading in the tokens on the tZERO platform were announced at that time.[26]

Blue Ocean Financial Acquisition

In January of 2017, t0 acquired the assets of Singapore-based Blue Ocean Financial Technology, Pte. Ltd. and formed Blue Ocean Technologies to offer a transparent, electronic marketplace for trading U.S.-listed securities during non-U.S. trading hours.[27]

In April 2018, tZERO launched the first demo videos of its trading software.[28]

Launch

In January 2019, tZERO won a patent for a "crypto integration platform," which will supposedly be capable of combining market data to determine the best prices for various cryptocurrencies. The announcement also said that tZERO would create specialized hardware related to the platform.[29]

tZERO launched on the afternoon of Thursday, January 24, 2019.[30][31] CoinDesk reported that traders commenting on trading volumes in a dedicated Telegram chat indicated that daily trading volumes had been light, 7,000 to 23,000 units of tZERO Preferred token (TZROP), in the early weeks of trading. TZROP is the only asset traded on tZERO.[32]

Key People

  • Patrick Byrne - Chairman
  • Saum Noursalehi - CEO
  • Steve Hopkins - President

References

  1. Distributed ledger platform for capital markets. t0.
  2. Overstock to Release Blockchain Product to Curb Naked Short Sales. Coindesk.
  3. Overstock’s tZERO Token Platform Has Officially Opened for Trading. Coindesk.
  4. Digital Locate Receipt Technology Platform. tZERO.
  5. Overstock to Release Blockchain Product to Curb Naked Short Sales. Coindesk.
  6. Overstock’s tZERO Exchange to Launch Bitcoin Trading App This June. Coindesk.
  7. ZERO Partners with Atari Movie to Tokenize First Major Motion Picture. BusinessWire.
  8. Overstock's t0: Reconciling Fiat Currency and the Bitcoin Blockchain. Nasdaq.
  9. OVERSTOCK BEGINS TRADING ITS SHARES VIA THE BITCOIN BLOCKCHAIN. Wired.
  10. Overstock Just Closed its First Day of Blockchain Stock Trading. t0.
  11. Overstock.com shares spike after blockchain unit announces for-profit property registry. CNBC.
  12. Patrick Byrne Mulls Overstock Sale to Fund New Blockchain Venture. Coindesk.
  13. Patrick M. Byrne. Independent Institute.
  14. Overstock to Release Blockchain Product to Curb Naked Short Sales. Coindesk.
  15. Overstock.com CEO aims to sell or reorganize e-commerce biz so he can focus on blockchain. CNBC.
  16. Patrick Byrne Mulls Overstock Sale to Fund New Blockchain Venture. Coindesk.
  17. BRIEF-Overstock.Com CEO Announces Management Changes To Accelerate tZERO. Reuters.
  18. Chinese Private Equity Firm To Invest $270 Million In Overstock Blockchain Subsidiary. Forbes.
  19. $404 Million to $100 Million: GSR to Cut Overstock tZERO Investment 75%. CoinDesk.
  20. Overstock's TØ is Launching an Initial Coin Offering Next Month. Coindesk.
  21. Overstock's tZero Wraps Up Months-Long Token Sale. Coindesk.
  22. tZERO Announces Launch Date and Initial Terms for its Proposed Token Sale. BusinessWire.
  23. Online retailer Overstock has raised $100 million for its ICO it says will replace Wall Street. Business Insider.
  24. Distributed ledger platform for capital markets. t0.
  25. tZERO Issues Preferred tZERO Security Tokens. Market Watch.
  26. Overstock’s tZERO Begins Distributing Its Security Token to Investors. Coindesk.
  27. t0 acquires assets of Blue Ocean Financial Technology, Pte. Ltd.. Globe Newswire.
  28. tZERO Unveils Security Token Trading Software. BusinessWire.
  29. Overstock’s tZERO Wins Patent for Integrating Crypto With Legacy Trading Tech. Coindesk.
  30. Security Token Trading on Overstock’s tZERO Platform is Live. Finance Magnates.
  31. Overstock’s Platform Kicks Off tZero Token Trading. Cryptovest.
  32. tZERO Is Live, But Volume Is Light and Its Token’s Price Is Down Sharply. CoinDesk.