Blockstack Gains US SEC’s First Approval for Regulated Token Offering
[ChainDD report] July 12 (ChainDD) the US Securities and Exchange Commission (SEC) has approved on July 10 blockchain startup Blockstack to offer its Bitcoin-like digital token, which may become a model of fundraising for cryptocurrency startups.
Blockstack company aims to raise $28 million through the token offering under Regulation A+ (Reg A+), as an alternative to an initial public offering (IPO) that help startups fundraising, according to a lawyer for Blockstack, cited by The Wall Street Journal. The company plans to start its public offering through its official website on this Thursday.
Token offering under Reg A+ to some extent is similar with IPO, but still varies from many aspects, such as token buyers won’t get ownership, instead, will receive utility tokens that can used on Blockstack’s blockchain-based platform.