The US Securities and Exchange Commission (SEC) is clamping down on unregulated crypto traders, token offerings, and hedge funds, so companies are looking to get on its good side when kicking off a new project or funding round. To that extent, Blockstack has officially applied with the SEC for a $50 million token offering in a bid to raise funds to help its developers continue creating an ecosystem of awesome decentralized applications (dApps).
The First Regulated Token Offering
If the SEC goes ahead and approves this token offering, it will be the first SEC regulated token offering. That’s a huge milestone for Blockstack, and will undoubtedly help the token offering sell out faster than anything we have ever seen before. Exactly 40 million Stacks (STX) will be sold at $0.30 each, while a further 40 million will be kept in reserve for the project to allocate to developers. Finally, a further 215 million tokens will be sold at $0.12 each.
Hopeful applicants can head to the Stacks Token website to take part in the token offering – if it’s approved. Users will be able to buy STX using USD, BTC, or ETH with a minimum purchase of $100 – or equivalent.
SEC Warming Up to Crypto
The SEC appears to have realized that it was being a bit standoffish when it came to regulating crypto projects and traders. While it has continued to decline Bitcoin ETFs and throw crypto traders in jail, it has begun a road trip of America. Along its road trip, it will stop off and take questions from local businesses looking to get into the blockchain and crypto space. This face-to-face personal approach is helping companies understand what they need to do in order to satisfy the SEC’s requirements – meaning more companies will start popping up.
Will it be the Fastest Sellout Ever?
There have been some pretty speedy ICOs lately, with Fetch.AI selling out in just six seconds. If the SEC goes ahead and approves Blockstack’s token offering, investor sentiment could be through the roof – helping it to sell out in record time. It might take a little longer than six seconds, but we have a feeling it will be a close second place.
Things are looking hopeful for Blockstack and we could see the SEC turn around and regulate the token offering. If it does, it will be a momentous moment for the American crypto industry and will spark a wave of applications for other regulated token offerings.