tZERO (TZRO), a blockchain platform for capital markets and subsidiary of Overstock.com (OSTK), has officially distributed its security tokens to investors, 3 months after the company completed its $134 million token offering (STO).
According to a recent report by CoinDesk, which cites a letter sent to investors, tZERO CEO Saum Noursalehi has outlined the first steps toward taking custody of the tZERO security tokens.
“As you are aware, on October 12, 2018 we completed the issuance of the tZERO security tokens. The tokens have been locked up in wallets maintained by tZERO on behalf of our token holders for 90 days following the issuance,” Noursalehi wrote. “Now that the three-month lock-up period has concluded, you must decide where to hold your security tokens.”
The letter reportedly states that investors have two options: hold the tokens in a personal wallet or create a brokerage account with broker-dealer and tZERO partner Dinosaur Financial Group. The former option is subject to a two-step verification process, according to the report. This confirms what the company said in an October press release announcing the conclusion of the token sale.
After the 90-day period expires, tZERO intends on offering holders the opportunity to trade tokens, pursuant to private resale transactions, with other accredited investors on a platform that tZERO is in the process of developing with a broker-dealer partner. In addition, tZERO intends that new investors who are accredited will also be able to open an account to buy tokens following the 90-day period.
tZERO’s platform is projected to go live sometime this month, almost a year after a prototype was first unveiled last April.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.