tZERO has backtracked on its plans to launch ICO as there has been a lot of scrutiny from SEC. tZERO which is owned by Overstock.com will offer a security token offering. The offering is an attempt to build the trust of investors in the company.
It would be interesting to see whether investors back the offering when its result will be out on 9th August. As this is a new way to offer tokens, many businesses are eagerly watching the outcome of the sale.
tZERO is an organization which will work through cutting-edge financial technologies. There was an expectation that the company will offer its token in the most legal manner. With Security Token Offering or STO, tZERO has helped in building some sort of trust of the investors.
ICO was had its fair share of troubles along with some resounding successes. The constant frauds made it a loose trust of many top investors. ICO offers no resource for a person who has invested in a token. In most of the cases, the team behind the ICO would take the money which was invested. This left investors with a bunch of useless tokens.
STO is different when it comes to protect the investment of investors. It will provide security to the investors. If a project fails, then the company will have to liquidize its assets to pay the debt. It will have to compensate investors with the funds. This process will not only make sure that investors have a safety, but also promote investment.
tZERO First Big Company To Adapt STO
According to a report published in Cryptovest, tZERO is the first big company to adapt STO. If it experiences some sort of success, then it will open new doors for other businesses. Investors, the investment being the most important, STO offers a unique way to keep the money safe.
The post tZero Security Token Not To Go Ahead With ICO appeared first on OWLT Market.
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