The startup will reportedly launch its token online on July 11. Notably, previously other firms have had taken advantage of Regulation A+ funding, however, this particular instance will be the first time investors will receive a token, rather than shares in the company.
With two tiers with hard caps on raised funds maxing out at $50 million within a 12-month period, Regulation A+ offers a more lenient disclosure obligations than a IPO. The report claims that purportedly a precedent-setting moment for the cryptocurrency ecosystem.
Muneeb Ali and Ryan Shea, the founders of Blockstack has reportedly investes approximately $2 million and 10 months to gain approval from the SEC. Apparently, Ali added that Blockstack had to develop a protocol for running a regulated ICO through Regulation A+ from the ground up. Reportedly, Blockstart applied for SEC approval to run a $50 million token sale in April.
Reportedly, Blockstart received $47 million through Regulation D funding in 2017, with an additional $5 million from venture-capital funding. As per WSJ, a crypto-based startup YouNow Inc. has also filed for a Regulation A+ funding round.
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