Overstock Will Airdrop Millions of Security Tokens to Its Stockholders

Overstock has slated Could 19 because the date to airdrop OSTKO safety tokens as a dividend to its shareholders. They’ll get one safety token for each ten OSTK shares they personal as of April 27, making for 4.37 million tokens to be distributed in whole.

Importantly, buying and selling for these tokens will happen completely on Overstock’s different buying and selling system tZERO. It processes lower than $10,000 in each day quantity on common.

Paperwork filed with the US Securities and Alternate Fee (SEC) on April 7 introduced Could 19 because the scheduled date for Overstock’s safety token airdrop to OSTK shareholders. Overstock registered its “dividend shares” with the SEC to make sure that the tokens are freely transferable by entities not affiliated with the corporate after distribution.

The announcement follows modification’s Overstock’s dividend distribution plan, which was permitted by the corporate’s shareholders on Feb.13.

Overstock executives anticipate OSTKO airdrop will profit tZERO

In a doc revealed on Overstock’s investor web site, CEO Jonathan Johnson and chairwoman of the board Allison Abraham emphasised their expectations that the safety token distribution will improve the liquidity and worth of tZERO. 

“We anticipate the Dividend will incentivize broker-dealers to take part in and join with the tZERO platform,” the pair wrote, including: 

“[W]e imagine the profitable issuance of the Dividend will exhibit to different issuers and market members that this expertise is scalable and has vital advantages to all market members.”

tZERO processes simply $8,700 in quantity per day

The SEC submitting asserts that the closing worth for OSTKO tokens buying and selling on tZERO on April 6, 2020 was $10.00. This means that the safety token would be the largest token buying and selling on Overstock’s buying and selling system, with a market capitalization of $40.37 million.

However the final OSTKO trades executed on the platform seem to have occurred on March 20 — with OSTKO seeming to have solely generated 92 tokens price of commerce in 2020 up to now. And over half over them befell in a single day in March.

The one different token out there for commerce on tZERO is the alternate’s native safety token, TZROP. This token produced $268,500 price of trades in March, equating to simply $8,700 in common each day quantity.

With such skinny liquidity on tZERO, the influence that an airdrop of Four million tokens to OSTK holders could have on the platform stays to be seen.