- Blockstack are looking to receive $50 million if SEC approves their proposal
- Blockstack will be the first US Company in the blockchain industry to use A+ SEC regulations framework upon approval
- Harvard University invests $5-$10 million in Blockstack token sale
Blockstack, a firm working on offering decentralized tokenized computing system has applied for $50 million through SEC’s mini-IPO later this year. If this is approved, Blockstack will be the first US Company in the blockchain industry to integrate the A+ framework of SEC’s regulations.
Details of the Proposal
Blockstacks used the commission’s regulation A+ mini-IPO framework to file its offering statement; the framework allows firms which are at their early stages to raise the first $50 million from the public. Only a few of the regulation A+ companies have been able to move to list a public exchange.
The startup is set to use the money from the offering to develop its decentralized computing system and app ecosystem. The company has already facilitated the creation of over 80 applications. Also, for some time now, the company has been developing an alternate platform for blockchain based internet as it aims at protecting people’s data which has been an issue with large enterprises.
Harvard University Invests $5-$10 Million in Blockstack Token Sale
Ideally, the platform Blockstack is building, would eliminate the need for third-party servers and allow customers to have full control over their digital identity and data. This will solve the prominent issue challenging the crypto community revolving around data breaches. It is reported that Harvard University has already invested $5-$10 million directly in Blockstack’s token sale.
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
The U.S market has not been kind to crypto projects of late due to the regulatory uncertainty. However, Blockstack has set the ball rolling with new standards of what could be the way to raise funds for blockchain projects in the future. The path Blockstack has chosen will see them be in a position to offer full-blown security tokens to their investors.
So, What Happens If Blockstacks’s Proposal Is Approved?
Upon approval, Blockstack will conduct the offering for 28 days, an exercise that is estimated to cost them $1.8 million. A total of 255 million tokens will be created, and their demand will be based on the usage of the Blockstack’s platform. Minimum purchase of ether or bitcoins of $100 are the preferred methods of payment that will be accepted.
Muneed Ali, Blockstacks’ CEO hopes for the process to get easier in the future and hopes that projects will follow the framework Blockstacks has created. He also hopes that SEC will consider their proposal carefully.