Will 2022 Be A Record Year for tZERO’s Trading Token?
Hello and happy Tuesday! Do you feel that in the air? Maybe it’s just me, but it feels like 2022 will be one of the best years yet! There are so many remarkable developments on the horizon for the blockchain world, and I cannot wait to share some of them with you! How could be intro the new year without talking about a groundbreaker in the industry: tZERO.
tZERO itself is a technology firm established in 2014 “with the goal of utilizing blockchain technology to revolutionize Wall Street so that financial processes no longer need to rely on traditional institutional market structures in favor of using blockchain to bolster and enhance market integrity.”
Interestingly, tZERO began as a subsidiary of one of the world’s largest online retailers, Overstock. Executives have since spent their time growing the technology and influence tZERO has on the industry. In fact, since the issuance of the tokens in 2018, over $134 million has been raised in aggregate by thousands of global investors. In early 2021, Overstock elected to partner with Pelion Venture Partners to oversee their blockchain arm, Medici Ventures. tZERO, a subsidiary of Medici Ventures, is now controlled by the venture capital firm that has a history of successful investments in beginning stage companies. The firm has explored numerous fundraising options since splitting from Overstock, including private fundraising, acquisition, or have even hinted at a future SPAC.
TZROP enables investors to gain direct exposure to tZERO’s growth through a quarterly dividend equal to 10% of its adjusted gross revenue. tZERO defines AGR the way most companies define profit. These dividends are paid in USD, Bitcoin, Ether, or other trading security tokens.
So how has this development affected price action? Let’s take a look:
Since it highs above $8, TZROP has struggled to maintain price stability at the higher levels. It developed a strong cup and handle pattern that broke out in late June but later failed in the high $7.30s range (see the circle in the chart). It has since failed to break above the downtrend that has been forming since reaching that pivot high. For investors that are long TZROP, they hope that the pivot low at the end of December will prove to be the low of the year. If TZROP can break above the downtrend, it has room to ~$3.50 before reaching major resistance. A break above $3.50 leaves the door open for a push close to $7.
While anything is possible, as long as tZERO keeps innovating, the token will not be trending in the $2 range for long.
Thank you for reading this edition of Token Tuesday! If you have any questions or feedback, please reach out to [email protected]
See you next week! 👋
Written and published by Samuel J. Sachs. Follow me on Twitter.
Everything in this report is for informational purposes. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.