Blockstack bags approval for Regulation A+ token offering from U.S. SEC
The U.S. Securities and Exchanges Commission [SEC] has approved blockchain startup, Blockstack, to conduct a $28 million public token offering under Regulation A+. According to a report by WSJ, the firm will begin offering tokens online from July 11.
Regulation A+ allows the general public to participate in the funding round apart from the accredited investors. Under Regulation A+ offering, funds can be raised after choosing from two tiers under the regulation. Maximum funds that can be raised is limited to $50 million under this regulation.
This is the first time that a company will be distributing tokens instead of shares under a regulation A+ offering.
According to the WSJ report, Blockcstack founders, Muneeb Ali and Ryan Shea, spent approximately $2 million over a span of 10 months to satisfy all the requirements of the SEC. Ali said the startup had to develop a protocol for running a regulated ICO through Regulation A+ from scratch.
Blockstack announced in April that the company was working with the SEC on the Regulation A+ token offering framework. 62 million of Blockstack’s tokens, Stacks, will be sold at $0.3. 78,333,333 Stacks tokens will be offered at a discounted price of $0.12. The company also revealed that an additional $12 million tokens will be kept aside to reward the developers who create top-notch application withing the Blockstack ecosystem.
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