What are you really buying when you purchase shares in (OSTK) Overstock.com, Inc? Is the digital bargain store really breaking into cryptocurrencies with the tZERO security token in a way that is better than other coin offerings? The tZero token was released to investors, but it was not met with the volume and excitement that was initially hyped up on social media and blockchain blogs. The reason behind the lackluster response to the coin is possibly because they released a security token “currency” on a proprietary platform in an effort to break into the cryptocurrency world. The platform is so proprietary that most investors and traders can't access it because it's only available to accredited investors. The speculators and traders propping up other coins and tokens are not accessing Dinosaur, the ONLY platform on which people can trade tZero.
Overstock.com took in capital for tokens issued to GSR Capital Ltd. The problem came when the second press release was missed by many. It disclosed GSR Capital initially planned to invest $400 million, but in the end, they only invested $5 million.
“In exchange, GSR agreed to transfer to tZERO a total $5.0 million in consideration, consisting of $1.0 million U.S. dollars, $1.0 million U.S. dollars' worth of Chinese Renminbi, and securities traded on the Hong Kong Stock Exchange with a market value of $3.0 million U.S. dollars”
A lot of positive statements have been made about the tZero Secure Token, albeit mostly by the Overstock.com CEO. He claims the tZero security token will solve the transparency problem of Wall Street transactions. Investors should wonder how this is different from other blockchain promises of transparency. What makes tZero special enough to get the buy-in from investors? There is no more added security or special features not already in-place with other blockchain tokens. The only difference is this token came from a declining bargain store whose CEO tried to sue Wall Street and pissed them all off.
The bottom line is, Overstock.com is yet another declining retail business attempting to increase revenue through acquisitions while hoping investors don't look too hard at the actual numbers. They released a security token “currency” on a proprietary platform in an effort to break into the cryptocurrency world. The lack of liquidity and promises of the future are not enough to cover the investment. In the meantime, Patrick and the Board issued a digital share for every ten preferred shares held by investors, but the one share is a preferred share, and you’ll need access to Dinosaur. Thanks, I guess.