Hong Kong venture capitalists invest $160 million in Overstock.com’s tZero ICO

29 Jun, 2018
by Ryan McInally
News
Hong Kong venture capitalists invest $160 million in Overstock.com’s tZero ICO

A Hong Kong based venture capital firm, GSR Capital has made a $160 million investment in e-commerce website Overstock.com’s security token tZero.

The tZero tokens will run on the Ethereum blockchain as ERC-20 tokens and will not give holders voting rights, though will offer dividends to investors. According to Overstock, 10 percent of tZero’s gross revenue will be redistributed to token holders quarterly.

Overstock.com is an American internet e-commerce retailer that began selling liquidated and refurbished goods online, but has since moved to also sell new merchandise. GSR Capital has offices in Beijing and Silicon Valley.

Overstock’s CEO and tZero Executive Chairman Patrick Byrne believes the potential of blockchain will allow tZero to become, “a company that will bring great efficiency and transparency to capital markets domestically and abroad. I truly believe what we are doing is historic and, while there is still much to be done, our success in this STO [security token offering] has given us the resources we need to see it through.”

tZero has currently raised $328 million, much more than the $250 million they had anticipated to raise when they contacted the Securities and Exchange Commission (SEC) to inform them that they would be holding an ICO. Even though the company has secured more capital than they initially wanted to achieve, they will be continuing their ICO until early August of this year.

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Read more about:Ethereum (ETH)

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