US online retailer Overstock has distributed OSTKO security tokens to its shareholders.
The company has reportedly distributed its security token among the company's shareholders on a basis of one digital token for every 10 company shares owned on May 19.
As a result of this airdrop, 4.37 million OSTKO tokens have been distributed to investors through Computershare.
Overstock has reported it has decided to distribute these tokens among its shareholders in order to increase liquidity on its security token exchange tZERO.
The company has said OSTKO tokens can only be traded on Overstock’s alternative trading system (ATS) tZERO.
Overstock CEO Jonathan Johnson is proud to have issued this "innovative dividend."
The distribution of the OSTKO token has been involved in a lot of controversy. Overstock had to go to court last week to ask for the dismissal of a lawsuit against the dividend filed by The Mangrove Partners Master Fund, which accuses Overstock of conceiving the distribution of security tokens in order to punish short sellers and hide the impact the airdrop would have on their share price.
OSTKO's price has lost 28% in one week, falling from $18 on May 15 to $13 today.
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