Overstock’s security token platform, tZERO, has lost one of their key potential investor in form of Singapore based fund ‘Makara’. tZERO first announced itself to the masses with a press release on October 4, 2017. However, they have been active in the blockchain space since 2015.
Interim CEO of Overstock Jonathan Johnson said during the investor call on Monday “Makara will not be investing in tZERO right now.” Though he added that the Singapore-based fund will keep an eye on tZERO and might reconsider its decision in the future.
This news has come at a time when just few days back, Overstock founder Patrick Byrne abruptly resigned from the company on August 22. Many critics are not shying away from calling it a post Bryne trauma and believe that the much awaited investment from Makara failed because of Bryne stepping down. Though, interim CEO Johnson has denied validity of such rumors
Johnson added “Byrne’s departure was not related to the current financial state of the company. Byrne would not leave if he didn’t believe the business is in the good hands.”
Makara entered the scene as the co-lead of a $100 million investment in tZERO common stock, which was expected to close in April. That target date came and went away with Makara’s partner, GSR Capital, ultimately investing just $5 million in May, which was far below the expectations.
Other tZERO Updates
- tZERO announced earlier in July that it has entered a partnership with the producers of the upcoming movie “Atari: Fistful of Quarters” to tokenize the first major theatrical motion picture.
- Few back back, Overstock announced that it will distribute the company’s dividends in form of tZERO tokens to its approximately 40,000 holders who hold somewhere around 37 million shares of Overstock .