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 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?