Blockstack, a decentralized computing network that enables a new generation of applications, filed an offering statement with the United States Securities and Exchanges Commission (SEC) to launch a $50 million token sale using the SEC Regulation A+ framework.
Looking to accelerate the development of the Blockstack decentralized computing network and app ecosystem, the company has decided to avoid the Initial Coin Offering (ICO) path that many startups have taken, and has been working with securities lawyers to create a legal framework that can push them towards a SEC-qualified token offering. If approved, this way of raising funds will be the first of its kind.
“This can potentially set a precedent for others in the industry, not just for public offerings, but also as a path to launch new public blockchains and establish a path to bootstrapping decentralized ecosystems.” Muneeb Ali, co-founder and CEO of Blockstack, said in a press release.
Blockstack Token LLC, a subsidiary, would be in charge of conducting the sell of 295 million tokens called Stacks (STX). These assets will function as an accounting mechanism which keeps track, but also as proof of the economic stake of its holders. Furthermore, the tokens will enable engineers to build secure applications.
Out of the 295 million STX, 40 million would be sold for $0.30 each, the next 215 millions go for just $0.12 each, and another 40 million will be reserved for developers creating top-of-the-line applications on the network. The offering will be go through for 28 days via the Stacks Token website with a minimum purchase of $100. USD, bitcoins, and ether will be accepted as payment methods.
Harvard Management Company, a $37.1 billion fund and the largest academic-endowment program in the world, alongside Lux Capital and Foundation Capital have already purchased about 95.8 million of Stacks valued at about $11.5 million. “This means that one of the leading university endowments is comfortable holding tokens directly,” said Anthony Pompliano in a tweet.
BREAKING: Harvard’s endowment invested $5M – $10M directly into Blockstack’s token sale.
This means that one of the leading university endowments is comfortable holding tokens directly.
THE VIRUS IS SPREADING ?
— Pomp ? (@APompliano) April 11, 2019
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