tZERO Starts Distributing Tokens Sold During ICO
tZERO, the platform for trading security tokens, began sending investors tokens that they acquired during the ICO in August, Coindesk reports. Buyers will get full control over their cryptocurrency, after which they must decide whether to keep these security tokens or transfer them to third parties for storage.
As reported in the letter, addressed to investors, the 90-day storage period for tokens on the tZERO custodial services has expired. Therefore, the cryptocurrency owners need to choose how they want to continue holding their security tokens — either on their own personal wallets or with the help of a broker-dealer.
Brokerage accounts will be created by tZERO’s partner — Dinosaur Financial Group. The letter notes that by selecting self-storage, users will have to pass verification. However, the security token holders can always change their mind and start cooperating with the brokerage company.
The tZERO platform, owned by a major US online retailer Overstock, raised $134 million during its token sale in August 2018. In October, the company completed the issuance of security tokens, which had been stored in custodial wallets for three months.
The precise date of launching trades on tZERO is still unknown. Earlier, Jonathan Johnson, the president of the parent company Medici Ventures, hinted that trading with security tokens would begin in January 2019.
Previously, tZERO intended to use smart contracts for precious metals supply.