Bitcoin Daily: Luxembourg Passes Blockchain Bill; Overstock’s tZERO Volume Sluggish

Bitcoin Daily

Overstock’s tZERO isn’t performing as well as expected.

According to CoinDesk, since its launch three weeks ago, daily volume for the platform’s tZERO Preferred (TZROP) token has been somewhere between 7,000 and 23,000 units — slightly lower than the company’s expectation of volume between 9,000 and 35,000 units.

The company issued 26 million TZROP last August during its security token offering (STO). In October, tZERO revealed that it wanted to raise up to $500 million during its initial coin offering (ICO). Although the token’s price was quoted at $8 when trading opened late last month, it has fallen as low as $3. TZROP was sold for $10 during the STO, while some investors were able to purchase it for $8 or less during the pre-sale.

One trader believes that the frenzy over the ICO led to many investors’ rushing to buy the token.

“From discussions with other TZROP holders, many of them don’t really understand what tZERO is and what type of investment they were making, they clearly did not read the offering details and just jumped in on hype from the general ICO craze expecting to double their investment in short order — unrealistic expectations,” Mark Nelson said. “Those investors and others who likely lost their shirts in the last 6 months on crypto and maybe even traditional market investments are the ones selling now.”

And Luxembourg has passed a bill to amend an existing securities law so that it includes blockchain.

According to CoinDesk, the country’s parliament passed Titled Bill 7363 to “provide greater certainty for investors and make the transfer of securities more efficient by reducing the number of intermediaries,” the chamber said.

Luxembourg had already passed a bill to legally issue “dematerialized securities” in April 2013 through an amendment to a 2001 securities law. This latest legislation further changes the 2001 law to also include the distribution of securities via secure electronic registration, “such as distributed ledger technology and in particular blockchain technology.”