Republic Quickly Distributes Note Tokens, Seeks to Issue Under Reg A+ with Holders Possibly Earning Income in the Future

Online investment platform Republic revealed last week that Note, a security token which may be issued under the Reg A+ exemption, has already granted 1.8 Note tokens. 

The Note tokens concept was first revealed in March when it was reported that Republic had acquired RenGen Labs, previously doing business as SaftLaunch, a security token issuing platform.

Republic has been operating as a FINRA approved Reg CF Funding portal. But with Note, it appears that Republic is shifting gears as it intends to issue the token under Reg A+, or perhaps Reg D, depending on how things shake out. Republic currently promotes its ability to issue securities under the full stack of securities exemptions including Reg S.

By using the Reg A+ security exemption, Republic may raise up to $50 million – a far higher amount than the cap under Reg CF which currently stands at just $1.07 million. Additionally, both accredited and non-accredited investors may participate in a Reg A+ offering. Importantly, securities issued under Reg A+ may be traded soon after the completion of an issuance.

Note is a unique project. Republic has always been a mission-driven platform seeking to empower underserved segments of society while enabling all investors to access compelling investment opportunity. Note is an extension of this thesis.

Since platform launch, Republic has helped over 100 companies raise capital online. More than 25% of these startups were venture-backed at the time of their Republic campaign, and many have apparently raised further funding at a premium.

Described as a product that allows individuals to “Invest in tomorrow, get rewarded today,” if everything works out, Republic may distribute a portion of the income generated from the investments to Note holders. A cool concept that still must pass muster at the Securities and Exchange Commission (SEC) but an interesting differentiator for the site.

While the total suppy of Note tokens has yet to be determined, Republic states that supply will be capped. Once issued, the only way to earn Note tokens will be from other holders. This supply constraint may drive the value higher over the ensuing years.

Interested individuals may sign up to receive future Note’s now.

Crowdfund Insider wanted to learn more about the thought process behind the project and expectations for the future. We recently spoke to Republic Chief of Staff Shrina Kurani and she provided additional information on the Note token offering.

What was the genesis of Note and creating a fund like vehicle for the Republic supporters?

Shrina Kurani: The Republic community has believed in our mission from the very beginning, and the Republic Note is a way to create a more symbiotic relationship between founders investors.

We’re strengthening our community and incentivizing engagement on our platform by immediately rewarding users with Notes when they contribute to our community. The active participants in our community receive more Notes.

It is our intention, but we can’t firmly commit to, rewarding Note holders by connecting Notes, or providing means for Note holders, to receive the right to future income so that when we win – our community wins.

[easy-tweet tweet=”It is our intention, but we can’t firmly commit to, rewarding Note holders by connecting Notes, or providing means for Note holders, to receive the right to future income so that when we win – our community wins” template=”light”]

Our lawyers require us to specify this may be fund-like but we have no intention of creating a fund or selling interests in a fund, stay tuned for more.

We also want to be abundantly clear, holding Notes now does not entitle you to any economic right; you will have to subscribe to a separate, future, securities offering to receive that right. Note holders will be the first to know the full plan when we are ready to roll it out.

Have you filed the form 1-A yet? Are you fairly confident it will be qualified?

Shrina Kurani: Internally, we’ve been preparing for the necessary regulatory filings since last June when we started the process of transferring our funding portal license from our parent company to a subsidiary (the first time it’s been done since Reg CF went live!).

We are now preparing our offering documentation and should we choose to move forward with the Reg A+, we believe we are well positioned to receive a qualification – if we can’t receive a qualification, we have other routes to achieve our goals.

Note holders should be aware that we may move forward with an offering that only allows certain classes of persons to participate.

We see our friend’s at Blockstack having filed their Form 1-A publicly as a great step toward our goals and mission – we hope that they receive a qualification soon so that other blockchain projects can follow in compliantly reaching the masses with their tokens.

Is there a cap on Note tokens? Over time, will you be posting an NAV? And what about trading?

Shrina Kurani: We want to respectfully table that question – at the time we are able to reward Note holders with a security interest, we will reveal all of these things – at the moment our focus is staying compliant and providing users a great experience on our funding portal, with the Note today, as a loyalty rewards program that lives solely on our site, that has real benefits and use on the site.

Anything else of interest in the queue for Republic? Are you going global soon?

Shrina Kurani: Republic is gearing up to be a one-stop-shop for startups raising capital – an investment platform for companies at any stage.

We’re flipping the model on its head by opening up our platform to our community first, and we’ll continue to challenge how wealth is distributed to level the playing field.

[easy-tweet tweet=”Republic is gearing up to be a one-stop-shop for startups raising capital – an investment platform for companies at any stage #Crowdfunding” template=”light”]

Republic Acquires RenGen Labs Token and Private Equity Platform

Republic, a Reg CF securities issuance platform, has acquired RenGen Labs a private equity platform that has operated in the initial coin offering/security token offering sector.

RenGen was previously operating as SaftLaunch but rebranded in April 2018. At that time, the company indicated its interest in issuing securities to non-accredited investors.

Republic is a FINRA regulated “funding portal” that issues securities to non-accredited investors under the Reg CF securities exemption.

Last January, RenGen Labs provided an update indicating their platform has hosted equity and security token deals in excess of $130 million. At one point, RenGen was hosting the tZero offering. RenGen has primarily acted as a Reg D 506c crowdfunding platform thus serving only accredited investors.

Republic currently is the smaller platform having raised just over $15 million for over 100 companies. Under Reg CF, issuers may only raise up to $1.07 million an arbitrary funding cap mandated by the exemption that hampers platform and sector growth.

The terms of the deal have not been disclosed but RenGen indicated the ownership of the RenGen Labs site and all related assets were transferred from RGL LLC to Republic.

As part of the acquisition, RenGen announced a forthcoming issuance of a blockchain-powered token that is described as, at some point in the future, connecting investors to the value of Republic’s entire portfolio of investments.

The new security token has been labeled “Note.” According to RenGen, participants will be able to earn Note tokens for “every action you take on Republic, from investing in companies to referring fresh deals, to telling your friends about a portfolio company you love.”

Name Change: SaftLaunch ICO Platform Rebrands as RenGen Labs

SaftLaunch, an initial coin offering launch platform, has rebranded and relaunched as RenGen Labs.

An email forwarded by the company announced the change:

We are very excited to announce the launch of our new website! On behalf of the entire RenGen Labs team, we would like to thank you for your support and feedback which contributed to major changes that have been implemented to improve the user experience and interface.  In addition to our rebrand and new website launch, we would like to let you know about another exciting development within the RenGen Labs company… We have been working diligently with our development team, operations team, and lawyers to enable issuers seeking to raise capital from unaccredited investors to list on RenGen Labs and expect to open this option on the RenGen Labs platform by July 2018. 

SaftLaunch / RenGen has hosted some of the biggest ICO issuers in its short existence. Some reports had indicated that the rapid rise and popularity of the ICO sector had, at times, overwhelmed the platform. One prominent SaftLaunch issuer, tZero, migrated to full stack crowdfunding platform StartEngine without disparaging the site, but rumors indicated the platform experienced challenges in keeping up with demand from aspiring investors.

The fact that RenGen expects to enable unaccredited investors to participate in ICOs opens up more questions than answers. This is one to watch.

tZero Has Acquired VerifyInvestor for $12 Million in Cash

Buried within the tZero Offering Memorandum for its ongoing initial coin offering were several interesting items of note. The first was the fact the SEC was in the process of reviewing the offering. Another interesting bit of information was the fact tZero has acquired a majority stake in VerifyInvestor.

According to the document that was included in the 8K filed with the Securities and Exchange Commission, tZero purchased a controlling stake in the Fintech firm;

Pursuant to a purchase agreement by and among the Company, Verify Investor, LLC and Jor L. Law, as representative of the several sellers of membership interests in Verify Investor, LLC, dated February 12, 2018, the Company purchased 81.0% of Verify Investor, LLC, an accredited investor verification company, for $12.0 million in cash.

Co-founded by Jor and JT Law, VerifyInvestor was an early entrant into the investment crowdfunding space providing investor verification services for accredited investors looking to back companies on crowdfunding platforms. Under Title II of the JOBSAct, also referenced as Reg D 506c, issuers are able to “generally solicit” to investors but must provide ongoing verification of their accredited status as part of the updated securities exemption. An individual is accredited when they can prove to earn $200,000 a year ($300,000 if married), or have a net worth of $1 million, excluding their primary residence. When Title II became actionable, multiple firms entered the investor verification space but VerifyInvestor remains as the most prominent survivor providing a successful and dependable service. The firm has since migrated into providing its services for security token offerings on platforms such as SaftLaunch.  tZero, a forward looking security token exchange and management platform, is a perfect match for the services of VerifyInvestor.

Crowdfund Insider has reached out to VerifyInvestor for comment but as of this writing company representatives have not responded.

 

tZero Raises $114 Million During Pre-Sale ICO, Migrates Away from SaftLaunch to StartEngine for Next Phase of Security Token Sale [u]

Overstock SEC Filing Indicates SEC Investigation Regarding ICO

tZero has finally provided some clarity on the progress of its initial coin offering (ICO). While the most recent Form D filed with the SEC indicated over $64 million had been raised it did not include international investors under Reg S. Today, tZero states over $100 million has been received as part of its pre-sale of its security token. tZero, a subsidiary of publicly traded Overstock.com (NASDAQ:OSTK), said that it is moving away from SaftLaunch and migrated to StartEngine – a significant coup for the full stack crowdfunding platform. SaftLaunch will still help to “facilitate” the offer. Crowdfund Insider has heard rumors of challenges with the SaftLaunch platform as tZero struggled with investor interest. The process for tZero includes accredited investor validation and applicable KYC rules.  The size and demand of the tZero ICO had swamped the SaftLaunch resources.

During this next phase of the tZero ICO tokens will be sold pursuant to Simple Agreements for Future Equity (SAFEs) at a fixed price of $10.00 per tZERO Security Token, subject to discounts and other concessions. Only accredited investors may participate in this round. Accredited investors are defined as having $1 million of net worth (outside of a primary residence) or alternatively $200,000 in annual income. That number jumps to $300,000 if the investor is married.

Overstock CEO and founder Patrick M. Byrne thanked early, strategic investors for purchasing the preferred equity coin. Early investors were institutions and prominent “whales.”

“Raising $100 million is no small task, and our team has worked tirelessly to conduct this offering in accordance with exemptions under the US securities laws. The opening of the Subsequent Sale Period is another step toward establishing a new paradigm in the capital markets through innovative technology. I welcome all of our new investors.”

The Subsequent Sale Period will be facilitated by SaftLaunch, as well as StartEngine.com (StartEngine), a technology platform that permits tZERO to independently connect with prospective investors.

Joseph Cammarata, President of tZERO described the relationship with StartEngine as creating another bridge between investors.

“To facilitate timely and efficient interactions with potential investors, both StartEngine and SaftLaunch will support us in the Subsequent Sale Period. As we transition to the Subsequent Sale Period, we are one step closer to our financing goals, including the use of a portion of the proceeds of the offering toward leveraging our blockchain experience and expertise to develop a trading system capable of trading tokens that are determined to be securities under the U.S. securities laws.”

Howard Marks, CEO of StartEngine, said that StartEngine is a leading platform to help issuers launch regulated ICOs both in the US and internationally. StartEngine was the first full stack crowdfunding platform in the US to create an ecosystem that supports security tokens.

The tZero ICO launched on December 18, 2017 and as of March 1, 2018, tZERO has entered into executed SAFES with approximately 1,100 Purchasers for approximately $114.6 million of Tokens, of which $100.6 million has been funded by the respective purchasers. tZERO also announced an extension of the offering until 5 pm EDT on May 14, 2018.

tZero reported that in connection with the commencement of the Subsequent Sale Period, the company has issued an “Amended, Supplemented and Restated Private Placement Offering Memorandum”, which supersedes all prior offering materials that investors have previously received. Investors that have executed a SAFE on or prior to March 1, 2018, may rescind their SAFE and receive a full refund of their investment, as described in the Memorandum, through 5 pm EDT on March 8, 2018.

tZero has indicated its intent to raise $250 million but today they may raise the amount to $300 million. The symbol for the tZERO Security Token, upon its inception, is expected to be TZRO. The tZERO Security Token will be a series of preferred equity of tZERO, with such terms, including with respect to the payment of dividends, as set forth in the terms and conditions included in the Memorandum.

On another note, Overstock filed an 8K today with the SEC that included the updated Offering Memorandum that indicated it was under investigation by the Commission. According to the filing;

In February 2018, the Division of Enforcement of the SEC informed the Company that it is conducting an investigation in the matter Re: Overstock.com, Inc. (NY-9777) and requested that the Company voluntarily provide certain documents related to the Offering and the Tokens in connection with its investigation. The Company is in the process of responding to this document request and will cooperate with the SEC in connection with its investigation. While the SEC is trying to determine whether there have been any violations of the federal securities laws, the investigation does not mean that the SEC has concluded that anyone has violated the law.  Also, the investigation does not mean that the SEC has a negative opinion of any person, entity, or security.

The intent of the investigation is not initially clear as it appears both Overstock and tZero have followed existing SEC rules regarding the issuance of securities.

tZero Has Now Raised at Least $64 Million of its $250 Million ICO

tZero has filed an updated Form D  506c with the Securities and Exchange Commission. According to this most recent filing, tZero has now raised a minimum of $64,361,403. This is a base amount because the filing does not include what has been raised from investors outside the US by using Regulation S. So as far as we know, tZero may have raised many millions more as interest from global investors in their security taken has been exceptionally high. So much so, tZero has struggled to manage investor demand on SaftLaunch where the security is being sold, according to industry chatter.

What else is different in the Form D? Investors now stand at over 1000 individuals or corporate entities. In the previous filing, tZero listed 398 investors.

The first sale of the initial coin offering that is really preferred equity started on December 21, 2017. One would expect this one should be closed no later than end of Q1. This ICO is one of the most watched security token offers this year. The other two big ones (right now) include the KodakCoin and Telegram – which has already raised a mind blowing $850 million.

tZero is the future of security transactions as it is leapfrogging all other brokerages / exchanges in existence – if management can execute effectively. tZero integrates cryptographically secure distributed ledger technology, or Blockchain, with existing market processes to reduce settlement time and costs, increase transparency, efficiency and auditability.

Overstock Moves Into Discount Equity Trading at $1.99 per Trade

Overstock.com (NASDAQ:OSTK) and Siebert Financial Corp. (NASDAQ:SIEB) have launched Muriel Siebert & Co. discounted online trading platform through Overstock.com’s FinanceHub as it merges e-commerce and securities transactions. Announced last December, any investor in the US, may access the Siebert portal through Overstock.com’s FinanceHub the opportunity to conduct trades of US equities at discounted prices. Overstock’s O Gold members can trade at $1.99 per transaction. If you are not a member it is just $2.99 per trade.

Overstock.com and tZERO CEO Patrick M. Byrne said Muriel Siebert was a woman that stood for integrity in capital markets and he was pleased to be associated with her firm.

“We have integrated so as to be able to bring to the public this discount trading platform, priced with an eye towards re-democratizing capital markets in the US,” said  Byrne.

Gloria E. Gebbia, majority shareholder and board member of Siebert Financial, called the collaboration an excellent opportunity to engage with women investors;

“we are especially pleased to optimize the Overstock consumer experience by offering discounted trading, along with other quality retail brokerage services, designed to meet the financial and investing needs of all our clients.”

Leveraging the e-commerce Overstock platform further, the company said that Club O Gold members will also enjoy free shipping on every order and at least 5 percent rewards on every purchase. Club O Gold membership is available for $19.95 annually.

 

Byrne, a Crypto proponent, is working to not only transform the Overstock platform but wants to completely disrupt the financial industry with his blockchain based tZero platform which is in the midst of an initial coin offering. The ICO, live on Saftlaunch, is currently engaging accredited investors to back tZero. The ICO is expected to raise $200 million in preferred equity.

ICO 2.0 : SAFTLaunch Says tZero Represents Second Wave of Tokenized Security Offerings

The tZero initial coin offering is one of the most anticipated ICOs scheduled to take place this quarter. tZero, an offshoot of Overstock.com, is founder Patrick Byrne’s vision of the digital asset future. While the past year has been a sugar rush bonanza of global ICOs raising incredible sums, regulators around the world are wising up and moving to enforce existing and new regulations to better control these investments. tZero will be the first preferred equity security token to be issued and represents the likely future of tokenized securities as the industry becomes more professionalized.

SAFTLaunch, the platform hosting the token offering, believes tZero represents “ICO 2.0.” While SAFTLaunch has struggled with interest in the offer, the platform is ready to move forward.

Commenting on the primary offering by tZero, SAFTLaunch states;

“The demand and level of interest we’ve seen reassures us greatly in our belief of a second wave of Tokenized Security Offerings (ICO 2.0).  tZERO and its partners, SAFTLaunch and Area 52, are building the infrastructural layer for a legal and compliant ICO framework, to support an even bigger second wave of this incredible disruption of financial markets.

SAFTLaunch says the offering will consist of two steps for qualified investors (IE verified Accredited in the US).

Investors must sign the SAFE agreement before January 25th when the platform will determine who will be eligible to participate. After receiving a countersigned SAFE agreement, investor may use their Ethereum wallet (exchange wallets will not work), to transfer funds ( tZERO is only accepting BTC, ETH, and USD) within 24 hours of receiving the countersigned SAFE agreement.

So how much will tZero raise? At last report, management said it would target $250 million but previously reports had pegged that amount even higher.

tZero has already announced several interesting agreements and partnerships. The forthcoming KODAKCoin has committed to trade on the tZero platform. PolyMath is in the mix too. Polymath wants to be the industry first security token launch pad becoming the open-source standard for launching securities tokens and tZero is leveraging these services.

Why is this all so important?

The entire process is a bit of digital asset trailblazing. Depending on how this all goes, we may see more regulated securities tokens travel down a similar path. In the long run, security ICOs will not work unless they adhere to existing securities regulations.

As Patrick Byrne said this past week;

“We’re going to disrupt institutions that were binding civilization together for thousands of years.”

Here we go…

tZero Filing Indicates $8.1 Million Sold So Far in $250 Million Private Placement ICO

tZero, the company that wants to be the one digital asset exchange to rule them all, has filed a Form D (506c) with the Securities and Exchange Commission (SEC).

According to the filing, $8.107 million in equity has been sold with the date of the first sale being December 21, 2017. tZero is required by law to file with the SEC 15 days after the first sale.  The document indicates tZero expects to sell $250 million in preferred equity in total.  Previously, tZero claimed its offering to be the “first-ever preferred equity security token” to be issued and traded. The security will be tokenized and is live on Saftlaunch now.

Patrick Byrne, the founder of Overstock (NASDAQ:OSTK) is listed on the document as a principle in the company. Byrne is rather bullish on cryptocurrencies in general and has championed the future of digital assets. At one point, Byrne boasted the tZero ICO will be the largest ever. If it hits $250 million that may be the case, depending on some other offers in the pipeline.

Crowdfund Insider previously reported that the tZero ICO had received more than $100 million in commitments during the first 12 hours of the pre-sales offer. Additionally, more than 10,000 subscribers have reportedly registered for accredited investor status. The $8.1 million most likely represents the verified and validated investors so far.

tZero expects the ICO pre-sale to run through January 18, 2018. tZERO will then enter into SAFEs with strategic purchasers identified by the company as accredited investors. During the period from January 18, 2018 to February 16, 2018, tZERO will enter into SAFEs with other accredited investors.

tZero says its platform will integrate with trade participants to create a real-time, authenticated, transactions all on the blockchain. tZero will operate as a regulated exchange and platform.

tZero ICO Begins Sending Offering Memorandum to Accredited Investors, Announces Airdrop as Incentive

The tZero Initial Coin Offering (ICO) listed on SaftLaunch is poised to be one of the largest ICOs to date. Open only to accredited investors, the pre-sale launched on December 18th only for the largest, institutional investors. Within half a day, over $100 million had been committed for a security token that is being treated as preferred equity. tZero says it is seeking a raise of $250 million but demand seems sufficient to push this one higher.

Today, Saftlaunh, the hosting platform that has been struggling to keep up with investor demand in ICOs, said they had received “unprecedented amount of interest in the tZERO Token Sale,

SaftLaunch added that Offering Memorandum’s were being sent out to all eligible investors based on their country of residence and accreditation status. US investors must go through an accreditation process, according to Title II of the JOBS Act, and validate their status via VerifyInvestor.

SaftLaunch said that due to the enormous amount of interest in the tZERO ICO, their team would be prioritizing applications who have already been verified as accredited.

Concurrently, Patrick Byrne, founder and CEO of Overstock and creator of tZero, apparently circulated the details of an Airdrop. Byrne is incentivizing the crowd investors with free tokens. Byrne said they are giving out (1,160,000) free token for the first 5000 (232t0/person) persons that help to promote the tZero ICO.

After a delayed launch, the tZero ICO is moving fast so expect this one to close ahead of schedule.

Overstock’s tZero ICO Rakes in $100 Million in First 12 Hours

The tZero initial coin offering (ICO) has revealed that institutional investors have committed more than $100 million in the first 12 hours of the pre-sales offer. Additionally, more than 10,000 subscribers have registered for accredited investor status via the Saftlaunch platform where the ICO is hosted. The overwhelming interest in the ICO apparently was the cause of a delay that saw the offer go live later in the day. tZero is a subsidiary of Overstock (NASDAQ:OSTK) and the creation of Overstock creator Patrick Byrne.

Revealed yesterday, tZero is claiming to be the “first-ever preferred equity security token” to be issued and traded. The tZERO security token is being issued pursuant to a comprehensive offering memorandum, rather than with a traditional white paper, similar to other public offerings.

The features of the tZERO security token are those of a preferred equity security, including a token dividend expected to be paid from adjusted gross revenue of tZERO.  The company also intends to provide tZERO token holders discounts for trading on its ATS and additional rewards and discounted services across the Overstock portfolio of companies.

“Yesterday Overstock and tZERO made history once again in launching the first-of-its-kind preferred equity security token,” stated Joe Cammarata, tZERO’s president. “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. We are working with world class institutions as well as some of the world’s most sophisticated cryptocurrency investors, who demand excellence and this is what we are delivering. We expect accreditation verification to continue. Verified investors will receive their documents and SAFE agreements as the allocations are completed.”

The company expects the token pre-sale to be oversubscribed shortly. Tokens issued will be available to accredited investors in the public sale beginning in January.

Overstock Updates on tZero ICO, Says $250 Million Offer to be Treated as Preferred Equity in Company

 

The highly anticipated tZERO initial coin offering (ICO) has finally launched on SaftLaunch. The ICO was delayed once before and appeared to be in a holding pattern earlier today but now the offer is live and open to certain investors. Part of the delay may have to due with the fact it has been announced the tZero token will not provide any type of utility.

According to a note provided by Overstock(NASDAQ:OSTK), the tZero ICO is a pre-sale for institutional investors only. The securities tokens minted by the offer will be treated as preferred equity in tZero. The global offer is seeking $250 million which may be a bit of an adjustment from Overstock CEO Patrick Byrne’s earlier claim that tZero would raise $500 million.

During the pre-sale period which commenced today and is anticipated to run through January 18, 2018, tZERO will enter into Simple Agreements for Future Equity (SAFEs) with strategic purchasers identified by the company. During the period which is expected to commence on January 18, 2018 and to run through February 16, 2018, tZERO will enter into SAFEs with other accredited investors. The exact timing of both sales may be changed.

Byrne said that Overstock is proud to be a market leading enterprise welcoming the “cryptorevolution.”

“Recognizing the Blockchain technology-driven transformation and disruption already underway across numerous industries, Overstock today opens the tZERO ICO,” said Byrne. “Beginning with the ‘pre-sale’ round, I am confident that prominent investors from around the globe will propel tZERO toward achieving its mission of bringing greater efficiency and transparency to capital markets.”

tZERO CEO Joe Cammarata said his company was disrupting a financial market ecosystem that was due for improvement;

“With this first ever regulated security token, we are entering a new world of capital formation that I believe will become Wall Street 2.0.”

Overstock shared a statement from Steven Nerayoff, Alchemist Founder and architect of the Ethereum ICO;

“tZERO’s ICO represents a watershed moment in the financial blockchain revolution. It’s backed by an all-star team of crypto and business pioneers. What makes tZERO a game changer is the team’s unique ability to fuse the traditional finance world with the bold, innovative crypto community. Alchemist is delighted to offer tZERO its extensive experience in counseling some of the most successful crowdsales in history on strategy, token economics, and compliance-related guidance.”

While tZero said the token would not be a Utility token, the company does expect the endeavor to provide certain additional benefits to holders of the Tokens in the future. These will not be a part of the terms and conditions of the Tokens, but rather benefits voluntarily provided by the Company to Token holders. These Discretionary Benefits may be withdrawn or changed at any time in management’s discretion or may simply never occur. It is an unknown.

Overstock said these possible Discretionary Benefits may take many forms including:

  • Discounts on certain products and services that the Company expects to offer in the future (including discounts on trading fees on a future Token Trading System;
  • For Token holders purchasing 100 Tokens or more, complimentary first year membership in Overstock’s rewards program, Club O, where available (not currently available outside the U.S.); and
  • Access to, and the degree of, any Discretionary Benefits, if offered, is expected to be determined by the quantity of Tokens the holder possesses. All matters relating to the terms of any Discretionary Benefits will be decided solely by the Board. Furthermore, the terms of any Discretionary Benefits will be subject to amendment by the Board at any time.

 

TZero Initial Coin Offering Expected to Launch Today on SaftLaunch [u]

TZero, the creation of Overstock (NASDAQ:OSTK) CEO Patrick Byrne, is a Blockchain platform for capital markets. Envisioned as a distributed ledger technology for trading and investing including the burgeoning initial coin offering (ICO) market, TZERO claims to be the first SEC and FINRA compliant ATS platform that will transform the digital assets market with compliant trading and investing.

Today (December 18th), is supposed to be the first day tZero is open for investment. As of yet, the offer is not live on SaftLaunch – the platform it selected to distribute its tokens. Originally, tZero expected to launch the offer in November but for some reason it was pushed back to December.

The token will be a Security Token with a unique characteristic as the Utility function may be used throughout tZERO’s suite of products and ecosystem. Since tZero announced its intention to do an ICO in October of this year, the company says it has been “overwhelmed with interest.” So if you are an investor that believes in the tZero vision of the future of capital markets you can head over to SaftLaunch and register invest in the ICO but you must be approved as an accredited investor first (using VerifyInvestor).

tZero has been actively promoting the ICO across social networks. The company is predicting the tZero ICO will be the largest ICO ever – raising up to $500 million – thus topping the Tezos ICO that raised over $230 million.

Update: tZero is now indicating it is accepting accredited investors that are identified as “strategic” during its pre-sale that may run until January 18, 2018. Following this strategic offering, tZero will open up the ICO to other accredited investors which should run until February 16, 2018. Of course, this could change and so these dates may not hold. tZero may be working with some of the Bitcoin whales to quickly raise its targeted $500 million.

Just so you are aware, according to the current definition of an accredited investor, an individual must earn $200,000 or more per year or have a net worth of $1 million or more (minus their primary residence) to be considered accredited. tZero is using VerifyInvestor for individuals to validate their accredited status.