The decentralized computing network, Blockstack has recently made news with the sale of its first to be regulated token by SEC.
This makes it possible for token investors to invest in SEC backed token for the first time. Muneeb Ali, the co-founder and CEO of the blockchain-based Blockstack network, updated in a blog post on the successful sale of $23 Million of offering including those of the SEC backed token.
The CEO suggests that the offering is also intended to attract Asian investment and network for the growth of Blockstack through an extra $5 Million SEC-backed offering that they aim to raise.
The U.S Securities Exchange Commission gave the go-ahead to Blockstack’s token under regulation A+. This is the kind of initial public offering that any person can invest to help start-ups raise an early fund. The regulation A+ funding of the Blockstack token sale stands at $15.5M. This is the first instance of a Regulation A+ Securities Exchange Commission Initial Coin Offering for non accredited investors. More than 4000 individuals and businesses participated in the offering that also attracted big investors like the Hashkey Group, Frontier Ventures, Union Square and various funds.
A regulation A+ allows issuers to raise $50 Million from accredited and non-accredited investors. What makes the A+ label interesting is that after the close of the offering the assets can be traded on an exchange. Trade of these tokens on non-US exchanges can start as soon as next month.
The founders of Blockstack toiled for almost a year with a $2M investment before they got the approval from the United States Securities Exchange Commission. The sale from the offering will go into upgrading the network’s computing and platform ecosystem.