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Report: Overstock Set To Launch tZERO Security Token Trading Platform

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Report: Overstock Set To Launch tZERO Security Token Trading Platform

The highly anticipated launch of the Overstock.com Inc. (NASDAQ: OSTK) tZERO security token trading platform is reportedly coming this week. 

What Happened

Overstock CEO Patrick Byrne said the company was “ready to hit the button and go live” on Friday with security token trading, but is waiting  another few days to process user signups before going live, according to CoinDesk.

“But by the end of the next week we will be turning the trading system live,” Byrne said, according to the Jan. 18 story. 

Why It’s Important

The launch of security token trading is a key step in Overstock’s pivot from e-commerce to blockchain technology. Overstock was one of the earliest online retailers to accept bitcoin back in 2014, and shares of the company’s stock soared more than 400 percent during the cryptocurrency boom of 2017.

Overstock’s Medici Ventures portfolio contains at least 10 blockchain technology investments, including a tZERO blockchain-powered investment bank.

Several Wall Street analysts have said the blockchain portfolio is now responsible for the majority of Overstock’s market value.

In November, Bryne told the Wall Street Journal that he was confident Overstock could divest its e-commerce business completely by the end of February following the security token trading launch.

Overstock shares are down 76.7 percent since the beginning of 2018, severely impacted by the bursting of the cryptocurrency bubble. The company reported a $4.28 EPS loss in 2017, and the Wall Street Journal said the Medici portfolio generated a net loss of $39 million in the first three quarters of 2019.

What’s Next

Overstock investors will be watching for an official security token trading launch and any early indicators of how the platform is received. In addition, traders will be looking for any subsequent rumors or announcements about a potential buyout of the Overstock e-commerce platform.

The market wasn’t particularly enthusiastic about the launch Tuesday, with Overstock shares down 1.98 percent at the time of publication. 

Related Links:

This Week In Cryptocurrency: SEC Shuns Bitcoin ETF, Overstock Gets Massive Investment

4 Potential Overstock Catalysts That Make DA Davidson Bullish

Posted-In: CoinDesk tZEROCryptocurrency News Markets Best of Benzinga

 

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