Patrick Byrne announces tZERO's ICO at Money20/20

Dr. Patrick M. Byrne, chairman of the alternative trading system for blockchain-based assets, tZERO has announced key details of a proposed initial coin offering (ICO) at the Money20/20 conference in Las Vegas.

tZERO, a subsidiary of Overstock.com, will use the Simple Agreement for Future Tokens (SAFT), administered as a SAFT pre-sale through SAFTLaunch.com.

Byrne provided a general description of the proposed tZERO token's key features, and the offering's timing, with the tZERO SAFT pre-sale expected to open on Nov. 15, 2017 and run until Dec. 31, 2017.

The proceeds from the sale are expected to fund, among other things, scaling tZERO's technology development and regulatory teams in order to maintain its leading edge, and potentially acquiring or establishing a custody and clearing firm to complement tZERO's existing infrastructure.

tZERO previously announced plans to work with the Argon Group and RenGen in order to launch a US regulated Alternative Trading System (ATS) and platform capable of trading both security tokens and app tokens issued via ICOs and SAFTs.

The Argon Group and RenGen have now been engaged as tZERO's advisors to lead and manage the tZERO SAFT pre-sale, which is currently expected to commence as early as mid-Nov. In the SAFT pre-sale, the participation of Argon Group and RenGen, together with tZERO, will provide both traditional, large global funds and the emerging crypto capital markets, a committed and experienced team capable of providing extraordinary strengths in all facets of the offering.

"Three years ago I stood up in front of an audience for the opening Keynote speech at Bitcoin 2014, in Amsterdam, and told the world that the main event of Bitcoin is not Bitcoin, it is the Blockchain, and it would change the world," said Byrne.

"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."

Pursuant to tZERO's SAFT, purchasers will enter into SAFT agreements that will produce digital tokens of tZERO that will be issued at a later date and are expected to trade on the ATS to be further developed by tZERO. tZERO is one of the few companies entering the token market with an existing, proven blockchain technology platform and the world's only SEC-compliant registered ATS capable of trading digital securities.

Following in a long line of first-to-market blockchain accomplishments, tZERO expects its SAFT to be the first digital token pre-sale to generate significant participation from both the growing crypto currency community and traditional global financial institutions.

Byrne outlined the following features of the tZERO SAFT sale:

• The tZERO SAFT pre-sale is expected to open on Nov. 15 on SAFTLaunch.com and will run until Dec. 31, 2017. This period may be extended or shortened at the discretion of tZERO.

• The tZERO SAFT is being issued in a private placement offering solely to accredited investors pursuant to one or more exemptions from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), including in compliance with Rule 506(c) of Regulation D, as promulgated under the Securities Act.

• The underlying tZERO token to be issued pursuant to the SAFT is expected to constitute a security, within the meaning of U.S. securities laws, and will therefore be considered a "security token," rather than an app token.

• The tZERO token will be tradable on tZERO's U.S.-regulated ATS.

• The tZERO token will incorporate profit-sharing features of a security as well as utility features of an app token, including:

1. Token holders will be able to use the tZERO token to pay for fees on the ATS and payment of such fees using tZERO tokens will grant up to a 25% discount as compared to payments made using U.S. dollars. The tZERO token is expected to have additional functionality and token holder benefits to be announced at a later to date and will be included in the offering memorandum; and
2. tZERO believes its token will be the first to offer a percentage of tZERO's profits, distributed as a quarterly distribution paid into tZERO token holders' digital wallets.

The use of proceeds of the tZERO SAFT sale will include the enhancement of the necessary functionality and support, and various other strategic acquisitions to complete the platform's crypto competency and ensure the independence of the tZERO ecosystem.

Unlike many SAFT sales and ICOs, tZERO believes it will be one of the few with an existing technology platform and FINRA license that allows it to trade digital securities.