Blockstack Opens the way for Crypto Startup’s funding via Global Token Sales in a Surprising approval by the SEC
In a surprising move which has astonished the crypto, finance and regulatory community, the US based Blockstack which is a decentralized computing network according to its personal description has gotten approval from the Security and Exchange Commission in the United States to carry on a token sale which it is empowered to sell to both accredited and non-accredited investors as well as US and non-US investors.
Hear that sound? that's ten thousand blockchain startups calling up lawyers to ask "what the eff is a Reg A?"
Congrats @blockstack on getting your offering qualified!
— Preston Byrne (@prestonjbyrne) July 10, 2019
This achievement has gathered applauding comments from crypto twitter considering the Commission’s hard-line on the sales of unregistered securities via token sales or ICO. Since the Commission came hard cracking down on illegal and fraudulent token sales, many Startups has been trying play safe while experiencing setbacks as the regulatory climate wasn’t clear for them. The establishment of a functional ETF is still on the commission to fully give a go-ahead to.
Blockstack has in this move paved way for other blockchain and cryptocurrency startups to have a clear direction on how to go about launching sales of government approved tokens to the general public. The Utility Token of the Blockstack project STX will be sold to the investing based on the Regulation A+.
The firm is looking at raising a sum of $28 million via this token sale which anyone who desires to participate will be legally able whether in the United States or elsewhere. A turn around and applause move on the part of the Securities and Exchange Commission on the participation of US citizens on token sales in time past. The sale will commence on the 11th of July, 2019.
The year 2017 saw billions of dollars raised via ICOs from both fraudulent projects to non-fraudulent project. All through the year, as the token sale market was booming, so the price of cryptocurrency was booming with Bitcoin touching $20,000 and Ethereum reaching as high as $1300 at it’s peak. However, with ban sweeping across the world from both government and corporations on cryptocurrency activities, the market took a dive in what has been known the longest bear season ever in cryptocurrency lifetime -the Crypto Winter.
As the market continues to rage on, with IEOs on one side, the Blockstack news is a welcome development for crypto enthusiasts who cannot wait anymore to enjoy the gains of the ICO era.