We witnessed a 30% growth in Overstock’s (OSTK) shares. This occurred after the company’s CEO, Patrick Byrne, revealed crucial details on the upcoming ICO.
We have witnessed a 30% growth in Overstock’s (OSTK) shares. This occurred after the company’s CEO, Patrick Byrne, revealed crucial details on the initial coin offering by one of its portfolio companies. He further claimed that the ICO had potential to raise up $500 million.
According to a report by CNN, tZERO (an Overstock subsidiary), has worked out a joint venture together with two other companies. They hope that they will be the first to establish a trading platform in the USA where ICO tokens are transacted in a controlled environment. The company, Overstock, is licensed to run alternative trading systems. Therefore, they have authority to list tokens as long as they abide by regulations set in place by the federal security.
The CEO later revealed how tZERO had plans of holding an ICO token that would be used in developing this platform. Crucial details on this ICO were announced at the Money 20/20 seminar that took place in Las Vegas last week. He added that tZERO’s ICO would act as a security. In return, investors would enjoy a percentage of the profits turned in by the company. Currently, Filecoin holds the world’s record for the largest crowd safe. It was valued at $257 million. He has high hopes that they will break this record when they raise $500 million.
Once this announcement was made, Overstock’s shares skyrocketed. From October 20th up to the day the announcement was made, the company’s shares ranged from $35 to $47. In the next one week, they had grown by at least 30%. Overstock’s shares have nearly grown to be thrice as valuable from last year. Analysts reveal that this influx can be attributed to the company’s blockchain space subsidiary, Medici Ventures.
In the middle of this unprecedented rise, investors may still rake in something from Overstock. Bloomberg provided information that Tome Forte, an equity analyst, further raised the company’s target share to $57 after the announcement was made. In a note addressed to clients, Forte said that he was impressed by the announcement. He was also pleased with the direction which tZERO took.
Word is that Overstock won’t be the only company profiting from this blockchain engagement. Shares of another Company, MGT Capital, also took to the roof after it invested in mining cryptocurrency. As if this wasn’t enough, shares of another company gained value twice after they decided to invest in cryptocurrency startups. They rebranded to Riot Blockchain following this announcement.
The rate at which investors are hyping blockchain technologies has caught the regulator’s eyes. The feds warned that companies might be artificially altering the perceived value of their shares by associating with this technology. In relation to this, SEC many blockchain firms have their trading licenses revoked temporarily.