Overstock, the US and international online retailer, have announced further positive news relating to the development of their forthcoming cryptocurrency exchange, tZero. The project has received a significant boost with an investment from GSR Capital, a major Hong Kong-based venture capital firm. The news caused a huge 12.5% spike in the company’s share price and further fuelled rumours that Overstock might be working towards the development of the US’ first fully regulated token exchange.
The tZero project was first announced in September of last year, with Overstock developing partnerships with Argon Group and RenGen LLC. The exchange is to be funded via a Security Token Offering (STO), enabling supporters to purchase tokens at $10 each. GSR will be acquiring no less than $160 million of the tokens.
According to Overstock, the sale has already attracted more than 1000 buyers from 30 countries, but GSR’s involvement appears to have prompted an extension in the STO’s closing date. The exchange may be expecting a further influx of demand with such an injection of capital. Overstock CEO Patrick Byrne said he hoped tZero could bring “efficiency and transparency” to crypto markets.
Byrne is a long-time supporter of crypto, and Overstock became the first major retailer to accept Bitcoin as early as 2014. He has described the potential of blockchain technologies as “world-shaking.” Today’s news would seem to suggest a reprieve for Overstock’s cryptocurrency ambitions, after reports of an SEC investigation earlier in the year impacted on the company’s share prices. Does the much-coveted prize of a fully regulated crypto exchange await?
