The first stage of tZERO’s token sale racked up $100 million in commitments from accredited investors, hitting the maximum limit that the pre-sale allowed for. The actual token sale will last one month, just like the pre-sale, and the investment limit is $150 million for that leg of the token sale.
The $100 million raised in the pre-sale was achieved within the first 12 hours, during which the company was selling Simple Agreements for Future Equity (SAFEs) – which can be exchanged for the newly-issued tokens at a later date. According to Overstock.com Chief Executive Officer, Patrick Byrne, about 2,000 accredited investors participated.
Because of the huge success of the pre-sale, Mr. Byrne told CoinDesk that the firm may have to make the two-month sale period shorter.
What kind of cryptocurrency is tZERO anyway?
tZERO is a “preferred equity security token” – and the company claims that it’s the first cryptocurrency of its kind to be regulated by the US Securities and Exchange Commission (SEC). Technically, tZERO is an Alternative Trading System (ATS).
“For the last two years it has been exciting to continuously innovate and disrupt a financial market ecosystem that is ripe for improvement,” said tZERO’s CEO, Joe Cammarata. 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.”
It seems like every week there are new signs that cryptocurrency and traditional financial institutions, like the SEC, are embracing each other more and more – and further legitimizing digital tokens and blockchain technology along the way.
The author of this article does not own any of the assets mentioned above.