Blockstack startup, the popular blockchain startup finally got the green light from the SEC to sell Stacks (STX) tokens. Blockchain startups finally got some dose of clarity regarding fundraising so now the utility token will be sold on offshoot via the IPO known as Regulation A+ which we are about to find out more in the coming altcoin news below.
Regulation A+ was created a couple of years ago so now Blockstack is targeting a $28 million token sale which will be opened to the public. This new token sale has the ability to become a game changer for other crypto startups that aim to sell tokens but not equity in their companies while they are still compliant with the SEC. The Regulation A+ is meant for smaller companies that don’t want to start an IPO though getting approval from the SEC was not quite easy for Blockstack. The startup poured about $2 million in the process of getting a license.
The Blockstack startup which describes itself as a ‘’ decentralized computing network’’ paves the way for other startups. Rather than just ban investors from the US from its token sale, they fought to get the approval they needed from the SEC. Some of the crypto companies were very sad to learn that they could have done the same and fought for approval.
ICOs were very popular in 2017 but since then they have lost much of their appeal. They became the target of the SEC crackdown. Initial coin offerings were not completely wiped off the market but some other structures such as IEOs facilitated the likes of Binance and STOs to the likes of Patrick Byrne took shape. According to the data from the Wall Street Journal, ICOs attracted less than $120 million in the Q1 of 2019 vs. more than $7billion in 2017. According to the announcement which we have in our latest cryptocurrency news made by Blockstack, the deal is open to everybody.
“This means everyone from general enthusiasts, to longstanding Blockstack supporters, to accredited or non-accredited investors alike — in the U.S. and globally, can participate in the sale.
Blockstack got the congratulatory notes from major companies and the entire crypto twitter community including Coinbase’s former COO Asiff Hirji who tweeted:
“Congrats. Good to see your efforts coming through.”
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