Overstock Shares Surge To 3-years Maximum due to ICO Trading Plans
ICO enthusiasm has ignited Overstock investors as news of its trading platform sends stock to $30 highs.
Overstock’s shares have jumped almost 20 percent as news that it will develop an alternative ICO token trading platform receives acclaim from investors.
Performance on Thursday saw the retail giant’s share price hit its highest level since 2014 at $29.85, capping several years of slowly increasing dividends for the Bitcoin pioneer.
New space for digital trading
Now, a three-way partnership between majority-owned subsidiary tZero, Argon and RenGen will create a new platform for trading digital tokens, wholly in-keeping with regulatory requirements in the US.
The concept is designed specifically to be legally watertight, allaying fears among traditional investors sprouting from the uncertain environment regarding ICOs in the US and elsewhere. CEO Patrick Byrne told CNBC:
“We can start moving these ICOs in and provide good, regulated trading.”
Regulators on board
Crackdowns on digital token trading from China and warnings from other major jurisdictions have served to dampen the previously vast enthusiasm for ICOs which saw a $2 bln industry appear in a matter of months.
While their prognosis in the US remains uncertain, Overstock’s first mover advantage in bringing in regulatory participation for its offering is clear.
“Overstock has been very methodical on getting the necessary regulators on board," DA Davidson analyst Tom Forte continued to CNBC. "Their process has been thorough.”
“That said, this is still a very early stage financial services market."
An accompanying release Wednesday about the platform confirmed it would be “in compliance with SEC and FINRA regulations.”