Blockstack, a blockchain-based applications platform launched in 2017, has announced its intent to raise $50 million in a token sale, by filing with the SEC for Regulation A+ crowdfunding exemption.
First Token Sale Filed with the SEC
The token sale, would be operated via a wholly-owned subsidiary, the “Blockstack Token LLC,” and entail the sale of 295 million Stacks (STX) tokens.
If approved, this could be the first token offering that has been registered with SEC. While the move still requires regulatory review, the sale would enable Blockstack to raise capital through the U.S. securities markets.
The Regulation A+ exemption enables equity crowd funding campaigns to offer and sell securities to U.S. investors via two tiers, either for $20 million or $50 million, each over a 12-month period.
The total amount of tokens being offered stands at 295 million. According to the SEC filing, Blockstack will be offering 215 million tokens at $0.12 to its early backers. Another 40 million tokens will be made available at $0.30 each. The final 40 million tokens will be reserved for incentivizing developers building applications on the platform.
Some of the investors that will be participating in the sale include Hardvard’s endowment fund, Lux Capital, Foundation Capital along with other individual investors.
“The net proceeds of the offering will be used to accelerate the development of its decentralized computing stack and app ecosystem,” the company said in a release.
Previous Token Sale
The company has already raised $52 million in December 2017 by selling 440 million tokens at the time. Investors included Union Square Ventures, Foundation Capital, Winklevoss Capital and Blockchain Capital, among others.
Muneeb Ali, co-founder and CEO of Blockstack, believes this could help the cryptocurrency industry establish a proper framework for both investors and other blockchain startups.
“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.”
According to the filing, Blockstack now employs 21 employees and has $32 million in total assets. The company has launched its native blockchain, the Stacks protocol, and has seen more than 80 decentralized applications built on its platform.