The tZERO Advantage
It is all about liquidity.
Since the company’s inception in 2014, tZERO has been an industry pioneer in the development and adoption of securities that utilize blockchain technology. tZERO’s securities trading platform, tZERO Securities, is the leader in liquidity for such securities.tZERO Securities executed the world’s first reported trade of a digital security in 2016 – the entire trade lifecycle was successfully completed and settled on the same day enhanced by distributed ledger technology. Since January 2019,tZERO Securities has facilitated the greatest volume of securities transactions globally that utilize blockchain technology.
Liquidity Matters
The assets on tZERO’s platform represent ~61% of the value of all securities that utilize blockchain technology and are responsible for ~86% of dollar trading volumes globally.¹
Trading on a platform with less liquidity may mean…
Less buyers and sellers, making it less likely your order gets filled
Larger price spreads
Greater opportunity costs
Side-by-Side Comparisons in Liquidity
Exodus Movement, Inc. (EXOD)
Exodus is a Delaware corporation that has developed a leading non-custodial cryptocurrency software platform. In May 2021, Exodus closed its Regulation A+ public offering, in which the company issued 2,733,229 shares of Class A Common Stock (EXOD) and raised $75 million in gross proceeds. In September 2021, Exodus decided to democratize access to EXOD by enabling it to trade on the tZERO Securities.
This week, EXOD also began trading on Securitize Markets. The chart below outlines the significant amount of volume tZERO Securities experienced on EXOD’s first day of trading vs. the volume the Securitize Markets experienced on EXOD’s first day of trading.
EXOD’s Secondary Trading Debuts
This example illustrates the importance of liquidity - investors that placed an order on Securitize Markets’ trading platform on March 16, 2022, did not get their order filled.
Curzio Research, Inc. (CURZ)
Another notable example includes tZERO Securities’ recent commencement of trading of Curzio Research, Inc.’s preferred equity security (CURZ). Curzio Research is an emerging leader in the independent financial newsletter industry. Prior to trading on tZERO Securities, the CURZ traded on a Seychelles-based securities exchange until October 30, 2021 and relocated to tZERO Securities on February 7, 2022. Its first day of trading on tZERO Securities hit an all-time high of $11.25, trading approximately 40x the historical average daily volume on the previous off-shore digital security trading venue¹. CURZ’ strong first day of trading on tZERO Securities was a clear indication of tZERO’s liquidity leadership and investors’ preference for compliant, on-soil trading.
tZERO’s User Experience
tZERO’s platform, operated by tZERO’s retail broker-dealer, provides customers with low costs, fast settlement, and investor protection. Notable benefits include:
Low Fees: 1% trading fee for buys and sells of digital securities. tZERO Securities, tZERO’s retail broker-dealer, charges no account maintenance fees and has no account minimums. There are no fees for debit and credit card purchases (as such purchases are not applicable to our platform).
Real-Time Settlement: tZERO settles all transactions for non-registered securities in real-time and in-house, without relying on a third party. tZERO, through its broker-dealer subsidiaries, custodies, clears, and settles all securities transactions for investors in real time.
SIPC Protection: tZERO Securities, LLC is a member of Securities Investor Protection Corporation (“SIPC”), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.
tZERO Securities offers continuous, automated liquidity for companies rather than conducting one-off transactions. The user experience on tZERO Securities is similar to the public markets, where transactions occur continuously and seamlessly. Other private marketplaces typically only conduct transactions on a scheduled basis, which could ultimately be only once a month, and the process to close a transaction can span several days.
Looking Ahead
tZERO looks forward to continuing to provide customers with an enhanced user experience by introducing new features, adding new securities, and improving its current platform. Keep an eye out for more information on upcoming initiatives and product upgrades, including:
Launching its harmonized trading experience, providing one touchpoint for customers to trade private digital securities and cryptocurrencies
Increasing the speed of deposits and withdrawals (for both securities and fiat)
Accelerating customer onboarding time
Enhanced customer service tools and resources
¹ Data sourced from Security Token Market. Global digital security volumes are calculated January 1, 2021 – December 16, 2021. CURZ trading volumes are calculated January 1, 2021 – October 30, 2021.
Investors should no
Investors should note that trading securities could involve substantial risks, including no guarantee of returns, costs associated with selling and purchasing, no assurance of liquidity, which could impact the price and ability to sell, and possible loss of principal invested. Further, an investment in a single security could mean lack of diversification and, consequently, higher risk. Potential investors are urged to consult a professional adviser regarding any economic, tax, legal or other consequences of trading any securities as described herein.
No Offer, Solicitation, Investment Advice or Recommendations
This release is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by tZERO or any of its affiliates, subsidiaries, officers, directors or employees. No reference to any specific security constitutes a recommendation to buy, sell, or hold that security or any other security. Nothing in this release shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this release constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this release should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this release, we have not taken into account the investment needs, objectives, and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed in this release by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible corrections. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.
Forward-Looking Statements
This release contains forward-looking statements. In addition, from time to time, tZERO, its subsidiaries, or its representatives may make forward-looking statements orally or in writing. These forward-looking statements are based on expectations and projections about future events, which are derived from currently available information. Such forward-looking statements relate to future events or future performance, including financial performance and projections; growth in revenue and earnings; and business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including, without limitation: the ability of tZERO and its subsidiaries to change the direction; tZERO’s ability to keep pace with new technology and changing market needs; and competition. These and other factors may cause actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this release and other statements made from time to time by tZERO, its subsidiaries or their respective representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions. tZERO, its subsidiaries, and its representatives are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this release and other statements made from time to time by tZERO, its subsidiaries or its representatives might not occur.
About tZERO
tZERO Group, Inc. (tZERO) and its broker-dealer subsidiaries provide an innovative liquidity platform for private companies and assets. We offer institutional-grade solutions for issuers looking to digitize their capital table through blockchain technology, and trade on a regulated alternative trading system. tZERO, through its broker-dealer subsidiaries, democratizes access to private assets by providing a simple, automated, and efficient trading venue to broker-dealers, institutions, and investors. tZERO is a portfolio company of Medici Ventures, L.P., a blockchain-focused fund. The general partner of that fund is an entity affiliated with Pelion Venture Partners. Overstock.com, Inc. (NASDAQ:OSTK) is a limited partner of Medici Ventures, L.P. and holds a direct minority interest in tZERO. For more information on tZERO, please visit https://www.tzero.com/.
tZERO is not a registered broker-dealer, funding portal, underwriter, investment bank, investment adviser or investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations or investment advice to any person, and does not provide any brokerage services. tZERO takes no part in the negotiation or execution of secondary market transactions for the purchase or sale of securities and at no time has possession of investor funds or securities in connection with such transactions.
About tZERO Securities
tZERO Securities, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. More information about tZERO Securities may be found at https://brokercheck.finra.org/. Digital securities that trade on tZERO Securities are conventional uncertificated securities. Ownership of such securities is reflected on the traditional books and records of regulated market participants.
