Blockstack raises $23M in historic initial coin offering endorsed by the SEC

Blockstack PBC, a startup that has built a blockchain-based network for decentralized apps, Tuesday said it has raised $23 million in an initial coin offering historic as the first token sale to be endorsed by the U.S. Securities and Exchange Commission.

Approval for Blackstack’s ICO was granted under Regulation A+, established under the Jumpstart Our Business Startups Act, that allows for companies to raise up to $50 million in an alternative way to an initial public offering.

According to the company, thousands of retail investors in the U.S. participated in the ICO along with investors in Asia who were also able to participate.

“Our goals for working with regulators in the States were twofold,” Muneeb Ali, chief executive officer of Blockstack said in a statement. “Primarily, we wanted to reach more retail investors who can be users of our network and have a financial stake in the success of our ecosystem. Secondly, we identified Asia as a priority market, and our SEC qualification added weight to our strategic move toward Asia.”

Blockstack isn’t new to raising money, having already gone down the ICO path before when it raised $47 million from accredited investors in a 2017 ICO under Regulation D of the Securities Act of 1933. The company has also previously raised venture capital funding from Union Square Ventures, Y Combinator, Lux Capital, Digital Currency Group and Naval Ravikant.

Tokens sold in the upcoming ICO will be distributed to investors within 30 days.

The company continues to grow, now reporting an additional 4,500 contributors to its Stacks ecosystem since July. The company offers a Dapps platform that is pitched as allowing users to be in control of their data and logins.

READ ALSO  Josh Hawley Continues To Pretend That Silicon Valley Isn't Innovative

Although Blockstack’s offering isn’t that much different from other blockchain-based Dapps companies, it does continue to impress, not only through its fundraising efforts but the fact that it did so legally with SEC approval. ICOs are not as popular as they were in 2017, but Blockstack has now set legal precedent as to how they can be undertaken legally.

Image: Blockstack

Since you’re here …

… We’d like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of the content, not advertising. Unlike many online publications, we don’t have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.The journalism, reporting and commentary on SiliconANGLE — along with live, unscripted video from our Silicon Valley studio and globe-trotting video teams at theCUBE — take a lot of hard work, time and money. Keeping the quality high requires the support of sponsors who are aligned with our vision of ad-free journalism content.

If you like the reporting, video interviews and other ad-free content here, please take a moment to check out a sample of the video content supported by our sponsors, tweet your support, and keep coming back to SiliconANGLE.

Source link

WP Twitter Auto Publish Powered By :