The very first American company has been approved by the SEC to conduct a public token offering, under Regulation A+, seeking to raise ~$28 Million USD. The public token offering is released on July 11th 2019, and any member of the public (globally) can partake/invest in a Regulation A+ offering, with some geographic restrictions.
The Regulation A+ offering is riskier than an IPO, so while not the equivalent of an IPO, this crypto token offering is still a first step in the right direction for crypto-related corporations.
Blockstack is a Public Benefit Company (PBC) at the heart of the blockstack ecosystem that serves to create cryptographically secured identities for use on various online applications where the user is in control of their data.
Blockstack is a decentralized computing network that enables a new generation of applications where developers and users can interact fairly and securely. The goal is to return digital rights to developers and consumers. Users of Blockstack have private keys (much like cryptocurrency private keys) that unlock their online accounts (i.e. email, subscriptions websites, social media, etc). The keys, and thus one’s information, are under the control of the individual. There are over 150 different applications built on top of the Blockstack ecosystem.
Blockstack previously raised over $50 Million USD in private funding rounds via investment funds such as Digital Currency Group, Winklevoss Capital, Foundation Capital, VersionOne, SV Angel, FBG Capital and more.
The founders allegedly spent ~$2 Million USD and 10 months to get this approval through, and if successful it will have been worth their time and effort to raise $28 Million USD.
How to Participate in the Blockstack SEC Approved Token Offering
In order to participate/invest in the Blockstack SEC approved token offering, you must register at StacksToken.com. You will have to verify your identity (AML/KYC) via registering for the investment, and later will be able to complete token purchase once the sale opens (and after your identification is verified).
The Token Offering begins Thursday July 11th at 11:00hrs Eastern Daylight Time. It is on a first come, first serve basis, measured by receipt of payment (payment times here).
- Blockstack Token Sale Becomes the First SEC-Qualified Offering in U.S. History.
- Blockstack Becomes First Reg A+ Token Offering Qualified by the SEC
- Blockstack Is Planning One of the First Reg A+ Compliant Token Offerings in the US
- About Blockstack
- Blockstack Website
Markshire Crypto Conclusion on Blockstack’s SEC Approved Regulation A+ Token Offering
I think that this is a breakthrough, precedent setting case. The Blockstack company is working on a real world problem with a real solution. Will it be a success? I don’t know.
But that is not the point. The point is that the SEC can and will approve token offerings if approached appropriately. This can and will set the precedent for other corporations to register with the SEC for token offerings worldwide, not limited to specific stock exchanges.
What took Blockstack 10 months will take the next company 9 months, and the one after that 8 months until many companies go through this process and it can all be completed in under a month.
While I have no idea whether or not Blockstack is a good investment token, I think that they are paving the way for other cryptocurrency projects and corporations to raise funding legitimately/legally with SEC approval.
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