DYOR Crypto Wiki
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DYOR Crypto Wiki

Basics

"The online discount store became the first major retailer to accept bitcoin in 2014. Founder and CEO Patrick Byrne, a libertarian with a Ph.D. in philosophy, is so convinced that blockchain will change the world that he is trying to get out of the retail business altogether and is already remaking Overstock into something of a crypto-obsessed company. Most notably, he has used $200 million in Overstock’s cash to fund Medici Ventures, a subsidiary which has invested in 19 blockchain companies. Full profile"

  • The first major retailer to accept bitcoin as payment long before Microsoft and Dell came along.
  • Counterparty got hired by e-commerce giant Overstock.com to develop a new stock market platform powered by cryptocurrency technology.

tZERO

Basics

"Despite the inglorious departure of its crypto evangelist CEO Patrick Byrne, struggling Overstock is still developing its blockchain-based trading platform, tZERO, which would allow investors to trade digital versions of traditional assets like stocks, bonds, real estate and art. Investors can currently trade just two tokens on the platform—representing Overstock’s and tZERO’s own shares. To date, Overstock has squandered some $200 million in 18 early-stage blockchain companies and has yet to derive meaningful revenue from any of them. An SEC investigation into various matters related to the company’s blockchain efforts is ongoing."

History

Token

ICO & Airdrop

  • Has started release its security token 'tZERO'; the tokens are being released through security token exchange TZERO; the company raised $134M out of a set cap of $250M; investors now have the option of choosing where to hold their security tokens, either by creating a brokerage account with Dinosaur Financial Group.
  • From Cointelegraph (21-5-2020):

"Overstock has successfully distributed its ‘digital dividend’, issuing ‘OSTKO’ security tokens to its stockholders on a basis of one digital token for every ten company shares owned on May 19.

In total, 4.37 million OSTKO tokens were airdropped to shareholders via transfer agent Computershare according to account balances as of April 27.

Last week, Overstock was in court seeking the dismissal of a lawsuit launched over the dividend by The Mangrove Partners Master Fund — a self-described institutional investor that Overstock claims is ‘a well-known short-seller.”

The plaintiff accuses Overstock of conceiving the security token distribution to punish short sellers and concealing the impact that the airdrop would have on its share price. The plaintiffs are seeking damages resulting from losses incurred as a result of the short squeeze.

The suit also alleges that the dividend was used to manipulate the markets, claiming that the announcement pushed up the price and triggered a short squeeze that saw Overstock’s founder and former CEO Patrick Byrne profiting over $90 million as he offloaded millions of shares amid his abrupt departure from the company last year. 

No injunction on the launch of the digital dividend was sought, and the case is still ongoing."

Token allocation

Utility

Token Details

Tech

  • Whitepaper can be found [insert here].
  • Code can be viewed [insert here].

Stablecoin

DEX

Privacy Method being used

Oracle Method being used

Their Other Projects

Governance

DAO

Upgrades

Roadmap

  • Can be found [Insert link here].

Audits

Bugs

Usage

"OSTKO, Overstock's recent digital dividend, and the company's security token, TZROP, represented 95% of May's digital token volume. This was a new record for the blockchain broker’s alternative trading systems (ATS), transacting over 423,000 shares. Volume is up 50% compared to the same period last month."

Projects that use or built on it

Pros and Cons

Pros

Cons

Competition

Coin Distribution

Team, investors, Partnerships, etc.

Team

  • Saum Noursalehi; tZERO CEO

Investors

  • From The Block (22-4-2020): "tZERO raised $5 million via an equity stake sale (22-4-2020)."

Partners

Team, investors, partners, etc.

  • Jonathan E. Johnson III; CEO, Johnson, who has been with the company for 17 years, also serves as the president of Medici Ventures, the Overstock subsidiary that focuses on blockchain innovation.
  • Patrick Byrne; former CEO. He left the company (8-2019) in a weird scandal involving a relationship with a Russian agent. “Thus, while I believe that I did what was necessary for the good of the country, for the good of the firm, I am in the sad position of having to sever ties with Overstock, both as CEO and board member, effective Thursday, August 22.” On the heels of Byrne’s resignation, Overstock announced that Jonathan E. Johnson III would be stepping in as interim CEO. Update (20-9-2019): Byrne sold 13% of his Overstock stock and claims to be in a struggle with The Deep State at the SEC.
  • Promoted Joel Weight to chief operating officer (COO) of Medici Ventures, the company’s blockchain venture fund. He succeeds Steve Hopkins, who recently resigned as COO and general counsel to become a president of tZERO, Medici’s long-awaited security token trading market. Hopkins’ move was part of a deal in which tZERO also acquired 100% of another Medici portfolio company, the crypto exchange and wallet provider Bisty, for $12 million. Bitsy was previously owned by Medici, Hopkins and his father-in-law Richard N. Beckstrand.  Medici owns 80 percent of tZERO and treats the startup with special attention, hence its deployment of Hopkins to lead the platform. All of this is going on as Overstock CEO Patrick Byrne is trying to sell the company’s flagship online retailing business to raise cash for Medici’s investments.

Partners

Medici Ventures

Basics

  • Overstock’s blockchain venture fund.
  • Not managed by Overstock anymore. From CoinDesk (27-4-2021):

"In its announcement, Overstock said Medici Ventures, has now been converted into a limited partnership and will be managed by Pelion.

As reported by CoinDesk in January, Overstock said the business would be converted into a limited partnership under new management as part of Overstock’s plan to eventually exit its blockchain-related investments."

Investments

  • "Ravencoin which launched on January 3rd, 2018, was primarily funded through Overstock’s Medici Ventures. To this day, the core developers are still associated with Medici, and Overstock’s placement of ‘Millions of Dollars’ into Ravencoin allows the association of meaningful value with the launch."
  • Is a sponsor of Coin Center
  • In 2017, Factom raised $8 million from investors including Draper Associates and Overstock.com’s Medici Ventures.

Team, etc.

  • Jonathan E. Johnson III; CEO, Johnson, who has been with the company for 17 years, also serves as the president of Medici Ventures, the Overstock subsidiary that focuses on blockchain innovation.
  • Promoted Joel Weight to chief operating officer (COO) of Medici Ventures, the company’s blockchain venture fund. He succeeds Steve Hopkins, who recently resigned as COO and general counsel to become a president of tZERO, Medici’s long-awaited security token trading market. Hopkins’ move was part of a deal in which tZERO also acquired 100% of another Medici portfolio company, the crypto exchange and wallet provider Bisty, for $12 million. Bitsy was previously owned by Medici, Hopkins and his father-in-law Richard N. Beckstrand.  Medici owns 80 percent of tZERO and treats the startup with special attention, hence its deployment of Hopkins to lead the platform. All of this is going on as Overstock CEO Patrick Byrne is trying to sell the company’s flagship online retailing business to raise cash for Medici’s investments.
  • Stanton Huntington, previously associate general counsel for Overstock, will take over as Medici’s general counsel
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