Overstock Blockchain Company tZero Launches New Security Token ‘TZROP’
tZero, the blockchain subsidiary of Overstock, the retail giant, has recently launched its TZROP tokens, which will be equity security tokens. With the token, the holders will have a way to get profits from the company.
What is more interesting is that the token will be available for both accredited and non-accredited investors, meaning that people who are not rich will also get a shot for investing in the new crypto product.
If you hold the tokens, you will get 10% of the company’s profit quarterly. The 10% will be equally divided by all the tokens and people will get an equivalent amount of money. The idea is that this could put small investors in touch with the profits of the company.
However, in order to really sell the tokens, the company is still awaiting the final approval, which will need to pass the Board of Directors and the law requirements of the state of Delaware.
Interestingly, the dividends can be paid not only in USD but also with cryptos such as Bitcoin (BTC) and Ethereum (ETH).
tZERO’s CEO Saum Noursalehi affirmed that the new security token is an important milestone in order to turn the capital market into something more democratic. According to him, non-accredited investors are generally not able to be a part of these investments, which excludes them from the market.
With this new offering, he believes that the market will continue to be properly regulated at the same time that more people will be able to invest in it. This will create more liquidity for everybody and also more wealth to people who simply were not able to invest in this profitable market before.