Overstock steps forward on the Blockchain with tZERO ICO
Internet retail giant launches the next step of the master plan
Overstock founder Patrick Byrne explains the constant motion of his efforts to integrate Blockchain to Wall Street. He gives the wording as “There’s a method in our madness,” in his explanation. The company that started off in a lab in 2014, took another step forward recently when the company launched the tZERO ICO. The internet retail giant Overstock initiated the Initial Coin Offering event for its subsidiary company tZERO despite of several hiccups during the process.
The initial coin offering for tZERO was initially revealed in October 2017. The plan is to raise 250 million USD during the pre-sale which will go till 18th January 2018. This duration might extend for one month depending on the company decisions.
Recently, Bryne even thought about selling Overstock e-commerce business to invest money on the blockchain solution. This suggested blockchain property registry system seems to have that much of importance in his priority list. He mentioned on having started designing this system three years ago and having made continuous progress.
Bryne is partnering with Peruvian economist Hernando de Soto for the launch of De Soto Inc., a subsidiary of Overstock. The plan is for De Soto Inc. to initiate a crypto-token sale through an initial coin offering (ICO) for tZERO.
In Wall Street, SEC-regulated trading systems (ATS) like tZERO are known as “Dark Pools”. While De Soto Inc. releases capital, ZERO will act as the capital market with synergy built up using blockchain technology. Byrne makes the following statement on his actions;
I feel an ethical obligation toward re-orienting my life so it’s about getting this done. We think we have got five years and five billion people we can change the world for.
tZERO ICO token sale
Byrne in his own words, is hype-oversubscribed about the initial coin offering. Steven Nerayoff, CEO of Alchemist – a blockchain consulting company, contributes as an official advisor to this ICO. He guarantees the sale will be open for everyone and not only for the big investment companies.
Apart from providing equity stake, tZERO will pay for trade transactions including digital locate receipts. Byrne also argues against closing down the chances for market manipulation;
It’s a blockchain system that’s an arrow, it’s a dagger, right at the heart of prime brokerage revenue.
Possibility to trade property
Byrne and de Soto plans to create a foundation for tradeable property titles in regions where the facility is currently unavailable. This will allow people to trade capital created through tZERO. Byrne plans to overcome “dead capital” which estimates upto 14 trillion USD with the intention of releasing a large amount of capital to the world.
De Soto Inc. plans to locate titles and move them to the blockchain. This allows financial institutions to work with them. Then property owners can borrow money keeping their property as collateral. This eventually bring out opportunity to initiate businesses or expand the wealth. According to de Soto the aim is assets;
We start off with land … but it’s about all assets.
Timeline of the plans
According to Byrne, giving out limited options will have an advantage on the use of tZERO;
We have the only SEC compliant ATS in the world that can trade blockchain instruments.
In March or April 2018, the company plans to add property titles from one chosen country to check out the system functionality. The next step of the plan is to roll out at a global scale. Following the tZERO ICO, the view of de Soto is that it is not disruptive, but foundational.