Bloсkstaсk Startup Hopes To Raise $50 Million During STO
A blockchain firm Blockstack from New York applied to the regulator for the permission to hold a sale of coins, during which it intends to attract $50 million, CoinDesk reports.
The SEC is already considering the Blockstack application. If the agency approves the initiative, the firm will be able to legally conduct the coin offering in the US under the Regulation A+, which will allow raising the required $50 million during the whole year.
The startup intends to offer 295 million Blockstack Stacks (STX) tokens as securities to investors. The firm chose STO as it considers this form of crowdfunding more versatile than the public shares offering. Each coin will cost $0.30. The startup's subsidiary Blockstack Token LLC will be responsible for the token sale.
The money gained will be spent on improving Blockstack's decentralized computing stack and developing an application ecosystem, according to the press release.
New York-based Blockstack is known as a software developer for the decentralized Internet. In 2017, it already received $50 million in funding from the Winklevoss brothers and other influential investors.
Muneeb Ali, Blockstack head, claimed that by cooperating with lawyers in the field of securities, the firm intends to create a legal framework for DLT protocols that would meet the SEC's requirements. He hopes this will be useful for other companies not only during the crowdfunding but also when launching more public blockchains and developing decentralized ecosystems.
Previously, the SEC explained which tokens can be considered securities.