By George Ward
The news that tZERO, the crypto exchange founded by Overstock, is shutting down on March 6 has sent shockwaves throughout the cryptocurrency community. tZERO, launched some years back, was seen as one of the most promising crypto exchanges due to its innovative approach to securities offerings, some of which were blockchain tokens.
Recently, tZERO Crypto exchange – majorly owned by Overstock – announced on Twitter that it would be closing on March 6. In the future, Overstock will focus on its regulated securities products because the SEC and other regulatory agencies are still determining the legal standing of digital assets.
Located in New York City, tZERO is a financial technology firm that helps private companies to go public with securities offerings. It is especially noted in the crypto sphere for offering tokenized shares, also known as “digital securities,” which are tradable on a blockchain.
Per the company’s August 26 press release, Overstock has majority ownership of 55% in tZERO. In the statement, tZERO suggested that unregulated crypto exchanges are becoming out of date, “we trust that numerous digital resources would be regarded as securities and exchange in a directed biological system.”
The Future Of Centralized Crypto Exchanges
The news of tZERO’s closure is undoubtedly a blow to those who had invested in the platform, hoping to benefit from its innovative offerings. It also raises questions about the future of centralized crypto exchanges and the security of crypto assets.
The reasons for tZERO’s closure are still being determined. However, this decision comes after the crypto bear market of 2022, with the platform needing more revenue to keep it afloat.
It is worth noting that tZERO is one of many recent crypto exchanges that have faced difficulties. In November, Bitfront, a US crypto exchange backed by a top Japanese firm, shut down after filing for bankruptcy earlier that month.
Similarly, Wyre, a crypto payment company, announced the closure of its operations earlier this year. While the closure of tZERO is undoubtedly a setback, it should not be seen as an indication that the crypto industry is doomed.
There are still several exchanges out there that are doing well and providing users with a secure trading environment. Moreover, the token market is still showing great potential in the future.