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Makara Capital Withdraws Planned Investment from tZERO

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A Long Road Ending in Disappointment

In mid-2018, tZERO and GSR Capital made waves when it was divulged that the latter would be investing over $400 million into Overstock. As the pair approached hurdles over time, the amount to be invested was decreased, in addition to bringing in a third party – Makara Capital. Fast forward more than a year, and the tides have changed – for the worse.

Yesterday, recently appointed tZERO CEO, Jonathan Johnson, announced that Makara Capital has withdrawn their potential investment in the young company. While the original investor, GSR, eventually invested $5 million – down from $400 million – Makara Capital has officially withdrawn their investment entirely.

Russian Spy’s and a fall from Grace

Overstock founder, Patrick Byrne, has recently come under fire within the media, as some truly bizarre developments have taken place. These involve claims that the FBI instructed him to develop a relationship with a known Russian spy.

Ultimately, the situation led to his departure at the helm of Overstock, with Jonathan Johnson being promoted to his role.

It is unclear if recent events surrounding Overstock and Patrick Byrne played a role in this decision by Makara Capital. However, given the timing, it would appear as though these developments were the ‘straw that broke the camels back’.

Stock Reaction

Overstock shareholders have been on a rollercoaster as of late, as each of these events have greatly impacted stock prices. While the company saw large declines in price upon release of the Russian spy news, a strong rebound was experienced upon Patrick Byrne’s replacement.

With news only recently breaking, regarding the withdrawal of Makara Capital from tZERO, time will tell how mother company, Overstock, is affected. With tZERO being a product of Overstock’s blockchain arm, Medici Ventures, the two companies find themselves closely linked.

Short Term Memory

Despite all of these developments, the future is still bright for tZERO. In the midst of the turmoil, including withdrawn investments, personnel changes, etc., they have managed to establish themselves as a leader within the digital securities sector.

People have short term memories, and with the world of blockchain rife with scandals, it shouldn’t take long for people to forget past transgressions.

tZERO

tZERO operates as a branch of Overstock subsidiary, Medici Ventures. This young company is focused on developing blockchain based solutions for the digital securities sector. Their efforts, to date, have resulted in the development of a secondary marketplace which looks to offer digital assets a place to call home.

Makara Capital

Operating since 2008, Makara Capital is a global investment firm. The company maintains headquarters within Singapore. Here, Makara operates under the watch of regulatory body, Monetary Authority of Singapore (MAS).

In Other News

The saga discussed here today has taken over a year to fully develop. The following articles elaborate on the timeline of events as we covered them over this time frame.

GSR Capital turns to tZERO for the Tokenization of ‘Cobalt’

GSR Investment in tZERO Slashed from $400 million to $100 million

Due Diligence Process Delays tZERO Investment

GSR Capital Reduces tZERO Investment by over $390 Million

Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

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