ICO Market Transformed by ATS Security Token Joint Venture Forged by tZERO, RenGen and the Argon Group
September 27 2017 - 7:00AM
tZERO, a subsidiary of Overstock.com, Inc. (NASDAQ:OSTK),
RenGen LLC and the Argon Group today announced an exclusive
joint venture that teams the market-leading strengths of each
company to launch an Alternative Trading System (ATS) that will
transform the trading of security tokens issued in Initial Coin
Offerings (ICO) in compliance with SEC and FINRA regulations (Joint
Venture). This rapidly emerging asset class of blockchain-based
digital tokens has raised more than $2 billion so far this year
(per Coindesk.com’s ico-tracker) and cryptocurrencies overall
(including digital tokens) have a current market cap of $137
billion (per Coinmarketcap.com), making this a huge growth
industry. Digital tokens and cryptocurrencies are also changing the
face of emerging growth company financing. In the first half of
this year, more money was invested in fintech through
cryptocurrencies than through venture capital (over $1.2 billion,
per CNBC).
“With ICO blockchain offerings surpassing traditional early
stage VC funding and U.S. regulators seeking legitimate venues to
support security token offerings, with this JV tZERO continues to
maintain its leading edge in blockchain financial technology,” said
Patrick M. Byrne, CEO of Overstock. “tZERO has been at the
forefront of the blockchain revolution for years, working closely
with regulators since 2015 – launching the world’s first SEC
compliant ATS for blockchain assets, the first private blockchain
bond offering, and the first ever public issuance of a blockchain
security,” continued Dr. Byrne.
“Now, by combining our expertise with Argon's advisory services
and RenGen's electronic trading, deep liquidity and market making
capabilities, we are in a position to launch the only U.S. SEC
compliant token trading venue,” concluded Dr. Byrne.
The landmark Joint Venture aims to redefine the way the ICO
market looks at security tokens, and enhance liquidity to
accelerate market development. Lack of liquidity has been a
significant impediment to security token market development. This
topic has received much attention since the issuance of the SEC
Report on the DAO Release No. 81207 / July 25, 2017, where the SEC
made clear that any digital token with an income stream is a
security, and furthermore that security tokens may only be traded
on an ATS or a National Securities Exchange.
“We have long been advocating that issuing digital tokens as
securities gives issuers and purchasers the greatest certainty
about the legal regime that applies to the sale and the widest
range of options to provide an attractive return for investors,”
said Emma Channing, CEO and General Counsel of the Argon Group.
“The key issue to date has been the need for an appropriate
marketplace to provide liquidity. This joint venture between tZERO,
RenGen and Argon has the potential to completely change the face of
ICOs.”
The Joint Venture will be built in an exclusive collaboration
that draws on the distinct strengths of each company, combining
tZERO’s groundbreaking, blockchain-based trading platform with
RenGen’s ability to provide liquidity, market making and algorithm
technology, and the Argon Group’s premier ICO advisory experience
and security token clients. The Joint Venture will also take
advantage of SaftLaunch for AML and KYC capabilities.
“This Joint Venture allows us to continue achieving our goal of
leveraging our existing U.S. equity market infrastructure and smart
order routing technologies within the blockchain space,” said Joe
Cammarata, President of tZERO.
“I have long believed that securitization is one of the best use
cases for blockchain technology – and the transformative ICO market
has proven so,” said Suleyman Duyar, Managing Partner, RenGen LLC.
“Patrick Byrne and tZERO had great foresight in developing and
registering the first digital ATS, and now, in partnership with
Argon, an industry-leading ICO consultancy, we are excited to bring
our high-volume participation in cryptocurrencies, technology and
trading expertise to this promising venture. It is a very exciting
time to be an investor in ICOs.”
Media Contacts:
Alex Sotiropolous, 212-754-5615,
asotiropoulos@intermarket.comKelly Ferraro, 646-277-1291,
kelly.ferraro@icrinc.comAlex Thompson, 646-277-1234,
alex.thompson@icrinc.com
About Overstock.com
Overstock.com, Inc. Common Shares (NASDAQ:OSTK) / Series A
Preferred (Medici Ventures’ t0 platform :OSTKP) / Series B
Preferred (OTCQX:OSTBP) is an online retailer based in Salt Lake
City, Utah that sells a broad range of products at low prices,
including furniture, décor, rugs, bedding, and home improvement. In
addition to home goods, Overstock.com offers a variety of products
including jewelry, electronics, apparel, and more, as well as a
marketplace providing customers access to hundreds of thousands of
products from third-party sellers. Additional stores include
Worldstock.com, dedicated to selling artisan-crafted products from
around the world. Forbes ranked Overstock in its list of the Top
100 Most Trustworthy Companies in 2014. Overstock regularly posts
information about the company and other related matters under
Investor Relations on its website, http://www.overstock.com.
About tZERO
t0.com, Inc. (“tZERO“) is a majority owned subsidiary of
Overstock.com, focusing on the development and commercialization of
financial technology (FinTech) based on cryptographically-secured,
decentralized ledgers – more commonly known as blockchain
technologies. Since its inception, tZERO has pioneered the effort
to bring greater efficiency and transparency to capital markets
through the integration of blockchain technology. More information
is available at tZER0.com.
About The Argon Group
The Argon Group (the "Group") is an investment bank with a focus
on digital finance - the emerging cryptocurrency and token-based
capital markets. The Group provides financial advisory, placement,
and technology services to companies seeking to raise equity, debt,
and non-dilutive capital. The Group develops technical placement
solutions, including digital tokens powered by advanced smart
contracts, which Argon operates through a digital asset placement
platform TokenHub.com. For more information, please
email info@argongroup.com, follow @theargongroup,
visit www.argongroup.com.
About RenGen LLC
RenGen LLC is an investment, technology and financial services
firm focusing on innovative blockchain technologies. We are high
volume participants in ICOs and an active cryptocurrency secondary
market participant. Our issuance portal SaftLaunch.com offers a
unique service for companies seeking to issue an ICO or raise funds
through a SAFT agreement, including a proprietary AML/KYC solution
and positions us to co-invest into the best early stage projects in
the pre-ICO phase.
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