The developer behind decentralized computing network and apps ecosystem Blockstack has attracted more than $20 million during an initial investment round in the U.S., which marks the first tokensale approved by the U.S. Securities and Exchange Commission (SEC). The investment results were announced by the company's co-founder, Munib Ali, on Blockstack`s official blog.
The tokensale was historic as it was the first to be held with the SEC’s legal approval, and sets a precedent as to how a crypto crowdfunding campaign can be accomplished legally.
The token offering, in accordance with the Regulation "A+", was completed on September 9. Together with a round of strategic investments led by Hashkey Group and SNZ, the total amount raised reached upwards of $23 million. Under Regulation A+, the SEC allows early-stage companies to raise up to $50 million from retail investors with lenient disclosure obligations, unlike IPO campaigns.
The Blockstack co-founder wrote in an official blogpost that one of the company's goals while working with US regulators was to open up the Blockstack network to a broader audience.
“We wanted to reach more retail investors who can be users of the Blockstack network. These users have a financial stake in the success of our ecosystem. We’re proud to deliver on our commitment to permit early community members who tried participating in 2017 but did not reach the wealth or income requirements for ‘Accredited Investor’ status. These early community members were able to participate now at the same price as the 2017 Regulation D offering to Accredited Investors,” Ali wrote on the blog.
Ali went on to say, "We worked with them (the SEC) to define a legal framework so that there can be more transparency, and the U.S. public markets can open up to this new type of asset."