Earlier this month Overstock announced the launch of their own ICO (initial coin offering), tZERO. An ICO is a type of crowdfunding which attracts investors through the prospect of a company’s own digital currency for exchange. The ICO will become available for private pre-sale this week, and analysts speculate that the release will have considerable consequences for Overstock /1/.
Will Overstock dump e-commerce for Blockchain?
Overstock is an e-commerce business focusing on home goods that was founded in 1997. The company has been discreetly exploring Blockchain and cryptocurrencies over the past few years and with the announcement of the ICO indicated that they may sell the e-commerce business /2/. Stock prices for Overstock rose 30% upon this announcement, showing confidence in investors that the company’s investments in Blockchain will thrive /3/.
So the question remains: will Overstock dump e-commerce and go all in for Blockchain? An analyst covering the company suggested that a move like this would likely improve share prices even further /3/. Many mainstream companies are looking to Blockchain because of its business potential not just in providing new currencies, but also for implementing applications enabling smart contracts and intellectual property protection.
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