Initial Coin Offerings (ICO) seem to be the perfect way for blockchain-based projects to raise investments in the modern world. In a brilliant run, the ICO raised by the subsidiary of Overstock, tZero has managed to scoop out a staggering amount of $134 million just recently. This comes out a result of the initial coin offering that the project began last year in December. tZero made its offering in compliance with the requirements put forward by the United Nations Securities and Exchange Commission (SEC). It is basically a trading system for securities furnished on a blockchain.
With all the interest built up in its ICO, major breakthrough came today when a Chinese private equity firm named GSR Capital announced to invest a heavy amount of $270 million in the blockchain-based startup of the commerce giant Overstock. The interest shown by GSR in Overstock’s startup has been overwhelming. GSR has decided to invest in the stock of Overstock, with an approximate amount of $104 million designated for this purpose. Besides this, GSR has decided to invest $30 million in buying the tokens offered in tZero’s ICO. The amount of investments made by GSR Capital in this particular domain go through the roof with a total of a staggering $134 million.
Talking about the project, the chief executive officer of tZero, Saum Noursalehi stated that, “This funding will allow us to globally scale our blockchain capital market platform on a rapid timeline, ushering in an era of trust through technology for the global economy.”
The original plan that was submitted to the SEC by tZero was to raise as much as $250 million in ICO. But due to the strict scrutiny and regulatory requirements placed by the SEC on the ICOs, owing to their not-so-clean background, have made this quite difficult to raise money. Due to security and manipulation concerns, there are certain requirements that ICOs need to fulfill put forward by United Nations Securities and Exchange Commission (SEC). But the journey is still on-going. The deal is supposed to be closed on December 15, and the valuation of tZero could reach as high as $1.5 billion. An investment of around $404 million is also expected to come.
Concerning the huge amount of investment pouring into tZero, the chief executive officer of tZero, Patrick Byrne stated that, “Think of it as a wedding cake”. The CEO of tZero also plans on expanding on a global scale with the project. He stated that:
Ultimately, the nature of these tokens, they can be cross-listed across exchanges in every jurisdiction. And that’s really the vision on a global scale.
Sonny Wu, the chairman and founder of GSR Capital also showed his intent towards the prevalence of this project on a global scale. He stated that, “We have a long-term view on how we want to scale this platform on a global basis.”
The main head office of tZero is located in Utah. Salt Lake City hosts the home of this project. tZero is licensed by the SEC and it is bound to comply with the requirements put forward by the regulatory body for raising ICOs. This might be the reason why the project has not been able to achieve the mark of $250 million as of yet. The world of ICOs has been filled with scams in the past and due to this exact reason, the SEC has placed bounds in the way ICOs operate. With investment coming in from a Beijing-based firm, things did not line up so well. In order to handle and regulate the exploding market of ICOs, the SEC has been actively involved in requesting information regarding the offering which might have slowed down the process.
Concerning the situation, Byrne stated that, “U.S. capital is, to be honest, they’re gun shy on this whole blockchain issue. And I’m sorry to say the US is not the leading country in the world.”
Summing up the entire situation, the ICO raised by the subsidiary of Overstock, tZero, seems to be one of the biggest as of yet. But this just shows the rate at which the market of ICOs is growing as whole. If the deal gets closed on December 15 this year between GSR Capital and tZero, this project might just become one of the biggest in terms of its ICO.