Overstock.com launches SEC-compliant ICO alternative

Online retail giant Overstock.com is currently not only offering custom jewelry or discount mattresses but has been delving into cryptocurrency through Overstock.com, its subsidiary focused on Blockchain ventures.

In their Overstock.com, they are now in a joint venture together with RenGen and Argon Group to launch an Automated Trading System (ATS) for trading tokens issued via ICOs.

tZero, the future of ICOs e-commerce?

tZero is said the to be the forerunner in cryptocurrency in terms of e-commerce.

According to Overstock CEO, Patrick Byrne, the platform will be the first to meet regulations of both US Securities Exchange Commission and Financial Industry Regulatory Authority.

ICO is a buzz word right now for two reasons:

1) the huge sums of money of raised via ICOs (more than $2 bln), which has exceeded the venture-capital funding in 2017 so far.
2) controversy surrounding the regulatory stances of such entities as the Securities and Exchange Commission (SEC), Financial Conduct Authority (FCA) and the People’s Bank of China towards ICOs.

Overstock CEO Patrick Byrne says:

“With ICO Blockchain offerings surpassing traditional early-stage VC funding and U.S. regulators seeking legitimate venues to support security token offerings, with this JV tZERO continues to maintain its leading edge in blockchain financial technology”.

Liquidity improvement of JV tZero

According to reports, $2 billion has been raised in token sales this year alone. This is in highlight with the market cap of all blockchain-based digital currencies now amounts to over $143 billion. The fintech investment in the first half of 2017 exceeded funding investment via venture capital which clearly demonstrates the industry’s overall massive growth potential.

The liquidity of JV is expected to improve which became a major obstacle to further development of the security token market.

In July, the SEC claimed that any digital token is a new type of security and thus must comply with securities regulation.

Emma Channing, the CEO and General Counsel of the Argon Group, says:

“We have long been advocating that issuing digital tokens as securities give issuers and purchasers the greatest certainty about the legal regime that applies to the sale and the widest range of options to provide an attractive return for investors”.

The issuance of tokens as securities will add great certainty for investors as well as issuers while adding credibility to this medium (ICOs) of raising money while resolving issues such as liquidity, pricing, uniformity and legality.

Overstock is not the only company gunning to lead the e-commerce game as there have been rumors circulating of Amazon potentially accepting cryptocurrency payments later this year which signal that more and more e-commerce firms are looking to help facilitate online transactions with the help of Blockchain technology and could potentially help speed up the adoption rate by which cryptocurrencies may become more easily accessible to the masses.