The First SEC-Qualified Token Offering Raises $23M
Muneeb Ali, the founder of Blockstack PBC, released a blog post this week reporting that his company has raised $23 million in public token offerings. This is significant because Blockstack PBC was the first crypto company to gain SEC approval for a public token offering. They did this through a Regulation A+ offering, which you can read more about in our previous blog posts, which cover the topic extensively.
According to cointelegraph.com, “Ali, alongside co-founder Ryan Shea, reportedly spent 10 months and approximately $2 million to gain approval from the SEC in advance of their token offering.” While that is a high cost in both time and money, it was likely a wise business decision because they surely stood out to potential investors. As we recently wrote about, the world of ICOs and cryptocurrencies in general is rife with scammers and fraud. For Blockstack PBC to go out of their way and put extensive resources into complying with the SEC, they are showing potential investors that their token offering is legitimate, and that they can invest in them with confidence. And this effort towards transparency clearly paid off, as they were able to raise $23 million.
Blockstack had previously done a Regulation D offering in 2017. Going through a Regulation A+ this time around allowed those who do not qualify as “Accredited Investors” the opportunity to invest in Blockstack. The A+ offering attracted 4,500 investors total.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.