Jan 11, 2019 06:30 UTC
Jan 11, 2019 at 07:45 UTC
tZERO Starts Giving Control of Tokens to Investors, Reports
A portfolio company of digital retailer Overstock, tZERO, has commenced the process of giving investors a control of tokens purchased amid a sale the firm completed in August 2018.
tZERO CEO Saum Noursalehi sent a letter to investors late Thursday, outlining the first steps towards taking custody of the tZERO security tokens.
tZERO wrapped up the $134 million offering last year in August, and in October, it said that it had completed the issuance of the tokens, which were locked up in a custodial wallet until yesterday, as outlined in the press statement at the time.
Noursalehi wrote in the letter –
“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. Now that the three-month lock-up period has concluded, you must decide where to hold your security tokens.”
The investors now have two options, according to the letter –
- Create a brokerage account with broker-dealer and tZERO partner Dinosaur Financial Group.
- Hold the tokens in a personal wallet, which is subject to a two-step verification process.
The tZERO firm stated –
“If you initially choose to hold your security tokens in your personal wallet, you may later move your tokens into a digital securities brokerage account you open up with Dinosaur.”
What is not clear by far is exactly when tZERO is anticipated to start actual trading of its security token on its platform. In the letter to investors, tZERO told to “look out for another tZERO update regarding the commencement of security token trading.”
The president of Medici Ventures, Jonathan Johnson told to CoinDesk that the security token platform will officially go live in January, a prototype of which was revealed last year in April.