Blockstack, the company that aims to create a decentralized internet, has reported that they want to raise $50 million in a token sale conform the SEC’s Regulation A+ exception.
The total number of tokens to be offered in the token sale will be 295 million STX tokens for $0.30 each.
The project aims to build a trading platform and is supported, among others by billionaire VC fund Tim Draper.
“The net proceeds of the offering will be used to accelerate the development of its decentralized computing stack and app ecosystem,” said Blockstack representatives in a release.
In the meantime, it has been reported on Twitter that Harward has invested $5M – $10M in STX tokens.
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
Blockstack Ceo and founder, Muneeb Ali said in an announcement: “We’ve been working with securities lawyers to create a legal framework that can enable blockchain protocols to comply with SEC regulations.”
“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.”
The Regulation A+ exception empowers companies to launch crowdfunding campaigns and sell securities to U.S. investors on two levels, $20 million or $50 million, each over a year time frame. A company gets a Regulation A+ offering by filing a statement about the offering with SEC, a step that Blockstack took today.
ICO-s or token offerings exploded in 2017 with billions of dollars in tokens sales. A long debate has started since that about these tokens if they are securities.
Is the history repeating itself and a new era of regulated token sales will start?