Project Overview

tZERO aims to build a stable and reliable securities token trading platform, which is entirely legal and regulated. tZERO conducted its ERC-20 compliant token (TZROP) and started the main sale in mid-2018.

Sector and Issuance Jurisdiction 

  • Sector: Finance / Software
  • Jurisdiction: U.S.

Key Milestones

  • In 2014, tZERO was an effort developed by Overstock.com to develop Medici, a blockchain technology, for cryptocurrencies sales.
  • In 2017, tZERO sold Simple Agreements for Future Equity (SAFEs) to investors.
  • In mid-2018, tZERO conducted its ERC-20 compliant token (TZROP) and started the main sale.

Technology

  • Blockchain: Ethereum
  • Token type: ERC20
  • Digital Locate Receipt (DLR) Software

Digital Locate Receipt (DLR) Software is a licensable software which is regarded as having the potential to revolutionize the stock loan business. Non-automated systems may result in inefficient allocation and pricing. DLR can help prevent this inefficiency because all transactions will be recorded into proprietary or other blockchains.

  • Risk Management Technology

SpeedRoute’s risk management tools are 15c-3-5 compliant. Their system consists of more than 50 risk management rules such as stopping orders, maximum notional amount, checking buying power, and so on.

  • Monitoring Tools

tZERO created plenty of monitoring tools to keep tracking the issues that may occur in trading hours. These tools cover the status of connection among clients, front ends, vendors, and execution venues. Clients can be provided with email alerts, visual and audio information.

Financial Traction

  • Total digital securities trading volume 2019: 2.032 million
  • Total digital securities trading volume January 2020 ~ July 2020: 2.269 million
  • Total dollar volume 2019: 5.332 million
  • Total dollar volume January 2020 ~ July 2020: 11.518 million

User Traction

Not publicly available.

Total Capital Raised from STO and Valuation

  • Presale: December 18, 2017 / January 29, 2018
  • Main sale: June 9, 2018 / August 9, 2018
  • Funded: $134,000,000 USD
  • STO Price: 1 TZRO = $10 USD
  • Accepts: ETH, BTC
  • Fundraising goal: $250,000,000 USD
  • Soft Cap: $50,000,000 USD
  • Security Type: dividend
  • Token Rights: pay token-holders quarterly with 10% of adjusted gross revenue

Investor Profile

Not publicly available.

Team

  • Patrick M. Byrne (CEO)- Patrick M. Byrne founded Overstock.com in 1999, and he recognized the enormous potential of cryptocurrency and blockchain technology as early as 2014. In 2015, Patrick traded a digital bond settled on a blockchain through trading platform tZero.
  • Joe Cammarata (President)- Joe Cammarata is now the President at tZERO, CEO at SpeedRoute. He is a former Co-founder and CEO at Sonic Trading. He once acquired a collapsed company, and the company's business grew ten times after reorganization.

Reference

  1. Anzalone, Robert. “TZERO Breaks A New Digital Token Trading Volume Record In July.” Forbes, Forbes Magazine, 6 Aug. 2020, forbes.com/sites/robertanzalone/2020/08/06/tzero-breaks-a-new-digital-token-trading-volume-record-in-july/.
  2. “TZERO (STO) - Security Token Overview.” STOscope, com/sto/tzero.
  3. “TZERO White Paper.pdf.” DocDroid, docdroid.net/JsZwvl2/tzero-white-paper-pdf.
  4. “TZROP Token: TZROP Price.” TZROP Token | TZROP Price, https://stomarket.com/sto/tZERO/#terms.