Overstock.com subsidiary tØ has formally announced an initial coin offering (ICO), set to begin next month.
Debuted at the Money2020 conference in Las Vegas, the ICO will be facilitated via the sale of Simple Agreements for Future Tokens (SAFTs), a model that was previously used in token sales like the one for filecoin, which raised more than $200 million.
The tZERO token, according to statements, will trade on the alternative trading system (ATS) being developed by the firm. The Argon Group and RenGen - companies hired to advise on the development of the ATS - will also work on the SAFT offering.
Patrick Byrne, Overstock.com's CEO and the chairman of tØ, struck an ambitious tone about the planned sale and what it means for the company's efforts more broadly.
Byrne said in a statement:
"While many doubted, the tZERO team worked hard, to be at the tip of the spear in creating and launching credible, capable and institutionally scalable blockchain technologies for crypto assets. Today those efforts are attracting interest from both the crypto community and the largest global institutional funds."
Word about the planned token sale emerged earlier this month, when Byrne told the International Business Times that the token would be used to facilitate on-platform payments. Notably, he predicted that the sale would garner as much as $500 million, depending on the interest from accredited investors (like some past sales, the tZERO offering is being restricted).
The tØ ICO will first run as a private pre-sale from Nov. 15 to Dec. 31. The proceeds from the ICO will help the company scale its technology development and regulatory teams, as well as either build or take over a custody and clearing firm, according to the company.
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