Blockstack startup may hold an IPO to actively develop mining

Endy Callahan

The startup Blockstack has not made a final decision to provide public mining of STX coins, which are recognized as securities in the United States. One of the possible options involves the initial issue of shares. This was told by the head of the company Munib Ali.

Blockstack development plans

According to Mr. Ali, his company is exploring such opportunities:

  • issue of tokens of STX, as this determines the application S. With this decision, mining coins will not require permission from the Commission, but will be limited to residents of the United States. The assets themselves will be frozen for 366 days;
  • the initial issue of shares will allow residents of the United States to purchase tokens, but this will need to be carefully prepared. In this situation, you may need permission from regulators in all regions;
  • the issue of STX tokens as set by regulation D. It will provide an opportunity for residents of the United States to acquire assets. However, individuals must have the status of accredited investors. Tokens will also be frozen for 366 days;
  • re-issue of STX coins (regulation A), restrictions will take effect: in mining in 50 million dollars and a certain number of tokens.

A number of legal experts believe that in the case of mining in 2020-2021, STX coins will no longer be positioned as securities, but the position of the Commission on these issues remains unclear. Consider the success of Blockstack tokensale.

The SEC approved tokensale allowed Blockstack to receive $ 23 million in investments

Blockchain-organization Blockstack was able to raise $ 23 million. during an investment round that included a US SEC-approved tokensale. It was conducted on the basis of regulation A+, which allowed Blockstack to sell 74 million crypto assets worth $ 15.5 million. All the investors were from the United States. An additional $ 7.6 million was raised from Asian depositors (regulation S).

In tokencache was attended by over 4500 individuals and organisations. Representatives of venture investors from the United States were Lux Capital and Union Square Ventures, Asian representatives were SNZ and Hashkey.

The company plans to sell its own tokens among buyers during the month. The raised funds are expected to be spent on further development, search for developers and customers.

Blockstack is the first organization that the SEC has allowed to conduct a tokensale under the current A+ regulation. As a result, small companies can receive funds from investors, and the requirements in this case are not as stringent as in the IPO. The article "What is IPO?" it will help to understand the peculiarities and subtleties of the initial public offering of the company.

The SEC approved Blockstack's $ 28 million tokensale for the first time

The U.S. Securities and Exchange Commission (SEC) made a positive decision on the application of the New York startup Blockstack for an ICO in accordance with regulation A+. In the history of cryptocurrency tokensale this was the first incident.

The launch took place on July 11, the ICO was attended by retail and accredited investors. Blockstack planned to raise $ 28 million, which allows for up to $ 50 million.

The campaign assumes that 62 million STX coins will be sold at a cost of 30 cents, the other 78 million tokens - at 12 cents. In addition, $ 12 million in cryptocurrency will be allocated to provide a reward to developers who create applications for Blockstack.

Thanks to the A + provision, small firms can attract investment from the General public. Companies do not need to meet the stringent requirements that are put forward for an IPO.

Munib Ali said that it took a lot of time and resources to get the Commission's permission, as the organization was forced to create a completely new Protocol for offering assets. Media reported that the costs of Blockstack to obtain approval amounted to about $ 2 million.

Blockstack was founded in 2013. The company has already been able to get 50% in investment projects.

The Winklevoss brothers and others invested $ 50 million. in the blockchain startup Blockstack

Blockstack has officially announced the results of the ICO, which was held for accredited investors. During licensee has sold 440 million digital assets, which allowed to receive investments in the amount of approximately $ 50 million.

Blockstack investors included more than 800 individuals and legal entities, including USV, Lux Capital, Winklevoss Capital, Foundation Capital, Kevin rose and others.

Blockstack CEO Munib Ali told: "Experienced investors participated in the funding round, not casual investors who wanted to place spare funds somewhere."

Developers reported that investors for them are long-term partners. For example, one of the funds invested $ 6 million. The company agreed to block half of the amount for 4 years. Other depositors' money is frozen for 2 years.

Blockstack reported on the guarantees provided to them. Initially, the organization will only have access to $ 10 million, other money will be frozen until certain development stages are reached. The next $ 20 million will be available after the Advisory Board confirms the release of the network with activated Stacks coins. The remaining $ 20 million. will be available after the appearance of a million registered customers.

Blockstack after tokensale intends to bring its shares to the stock exchange. The company demonstrates great success. Thus, during the sale of tokens, it was able to attract $ 50 million of investments. The project has an impressive potential. If you want to invest in the development of blockchain technology, be sure to consider Blockstack.