tZero ICO is about to disrupt markets.
KODAKCoin perhaps the first large company launching a Crypto.
KODAKCoin will trade exclusively on tZERO's platform.
KODAKCoin itself is not important, what is important is this is the precedent for hundreds of other big corporate coins.
It's amazing how many rumors and trash talk can keep a genie in a bottle. But in the next 60 days, not Trump himself could stop this genie from coming out of Overstock.com's (NASDAQ:OSTK) bottle and when it does, it will make Crypto history. There's nothing new here, this story has been going on for some time - but we're now nearing the climax, the singularity. And it's happening now!
Recently, we authored an article talking about how Overstock is the perfect Blockchain play and we still believe it is.
But since our article things have changed for the better, and we want to focus on the tZERO ICO.
First, KODAKCoin announced that it was going to go live on tZero's platform:
"Ahead of the initial coin offering (ICO) of new cryprocurrency KODAKCoin, Kodak partner WENN Digital has teamed up with tZERO.com, the blockchain focused subsidiary of Overstock, it was announced last week. tZERO will advise on the upcoming token launch, providing services including encrypted accounts, clearing, reconciliation and AML/KYC verification, in accordance with U.S. Federal Securities laws. In a statement, tZERO CEO Patrick Byrne said, “As U.S. regulators seek securities-law compliant applications for companies issuing security tokens, the issuance and trading of KODAKCoin in compliance with securities laws will empower entrepreneurs and protect photographers’ property and licensing rights, while achieving another critical step in defining a new wave of digital capital formation. We welcome the KODAKCoin into the tZERO family and look forward to working with this iconic brand.”
We need to elaborate on how big this news is. Whether KODAKCoin fails or not, they have set a precedent, a path of least resistance. Kodak wants desperately for this ICO to work, they don't care really about anything but their own success. They chose tZERO for the same reasons that hundreds of others will in the months ahead - it's approved, it's ready to go, it's solid technology. We have seen few big names announce ICOs, the most we've seen are the formation of working groups, feasibility studies, etc. But let's just think positive for a moment and imagine a scenario. Facebook (FB) wants to do an ICO, a spinoff for example. They are not likely to go out and build their own system, they would use the tZERO platform. It's the corporate mentality for public companies. It's like building a river with a hose in the sand - all you need to do is draw a small line with your finger, no digging or tools needed - and put the hose, after 10 minutes there will be gorges and twists and turns and a valley and a real river. It's a herd mentality and we can critique it in another topic, but it's not going to change for the time being. Once one cow went away from the pasture the rest of the herd is sure to follow. That's what's happening here with KODAKCoin and why it's important news for Overstock.com shareholders and tZERO token holders.
By the way, for those who want to join the tZERO ICO, now there's a more clear path to get in on the accredited pre-sale - go to tzero.com to learn more.
The other news that happened since the last article is the partnership with Polymath, perhaps the only other player in the securities token space:
CEO of Polymath Trevor Koverko said, “tZERO is on the precipice of disrupting Wall Street as we know it. Our goals are similar-to create a thriving security token industry and allow companies and investors greater access, transparency and efficiency to an emerging token economy. We are excited to work with tZERO to provide ongoing consultation and support to the build out and distribution of the tZERO token, which will be a preferred equity token for tZERO.”
Why this is important, is that a potential competitor has become a partner and is even promoting tZERO as the next great thing to come to Wall Street. Everyone is behind this - so what's with all the rumors?
For those who question these lurking unsubstantiated rumors you hear, which are always vapor and never sourced or referenced, we should elaborate on it here. There is a group of short sellers that enjoy to spread rumors and other dirtball tricks in order to sufficiently spook real investors from buying and holding. We have seen this first hand. How it goes, 'oh a friend told me this and that', well, we all know that you shouldn't make investment decisions based on what you hear on the 'street' or from your 'friends' but gossip is such a powerful force! Let's look at some of the attacks here on Seeking Alpha like the ridiculous "A Dumpster Fire waiting to happen" - even the twisted logic presented in the article is completely wrong and baseless, as Overstock is still trading at an extremely low P/E ratio compared to its market cap peers or industry peers. Many companies we won't name names because it will distract the point here trade at P/Es 10x-20x that of OSTK and you don't see articles like 'cash burning furnace' - so what gives? Are there really aliens conspiring against OSTK controlled by the Sith Lord?
Maybe, but what's really going on here is the Bill Ackman 'pumpers and dumpers' strategy, it's a group that will do anything and everything to ruin a company's business for a quick buck. These people really should be tarred and feathered because it's so difficult to build a company up strong, and to spread a rumor, causing the stock to drop, and make a profit, it should be illegal. Well, it sort of is, but yet they are able to do this.
So why we mention this here and now? As the tZERO token launch is about to take off, the energy from the rocket boost off will be so powerful it will blow all the shorts right out, and the short squeeze will be like a super sonic boom on top of the already fast trajectory. That means OSTK can jump high as investors seize on the first regulated crypto play, squeezing the shorts out of their positions.
Some of them have already realized this and bailed, take a look at stats from WSJ:
SHORT INTEREST (01/12/18)
Shares Sold Short
Change from Last
Percent of Float
Still, 5M out of a public float of 16.3M is a lot, big stocks like IBM (IBM) and Amazon (AMZN) have about 1%-2% average. This is the statistic that investors should be looking at. Yes, it's true that their traditional retail operation is not the best performing business. However, tZERO can payoff big and payoff quickly, with big names coming on the Blockchain train. They've built the pipeline, now investors have found the oil (Bitcoin) and need a way to transport it. That's how much the tZERO platform is worth. In the context of Blockchain, it's priceless. Perhaps it's worth more than having the original keys to Bitcoin, because it's something that Wall Street can use. The ways it can be used for securities and derivatives will quickly expand on an as needed basis.
Now is the time to get long if you're not, or load up on tZERO tokens before the public sale. Mission control has started the countdown, T-minus two, one, zero...
Disclosure: I am/we are long OSTK.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: We also are invested in the tZERO ICO
tZero ICO is about to disrupt markets.
KODAKCoin perhaps the first large company launching a Crypto.KODAKCoin will trade exclusively on tZERO’s platform.KODAKCoin itself is not important, what is important […]