The U.S. Securities and Exchange (SEC) is tightening policy around token offerings. As such, more startups are now discovering ways to comply with the agency’s requirements rather than finding workarounds.
One of these tokens that goes by the name of Stacks (STX) is in the process of conducting an offering in a compliant manner.
What is Stacks?
The Stacks token is based upon the Blockstack blockchain. The decentralized computing and storage platform allows developers to create their applications in a safe environment. The data is stored in a highly secure manner.
The Stacks token is aiming to be completely regulated by the SEC and has already filed with the agency to approve its $50 million token offering.
The filing, which is under the SEC Regulation A+ framework, details the valuation for the token offering. Blockstack is planning to sell its tokens at different values between early investors from 2017, and new investors from the present.
The company has mentioned that according a valuation from 2017, it had sold its then-upcoming Stacks tokens through non-binding vouchers to early investors.
These token vouchers, which Blockstack aims to offer at a quantity of up to 215 million Stacks tokens, have been valued at $0.00012 per token.
Whereas, the 40 million Stacks tokens that the firm is offering up in its regular token sale are to be priced at $0.30 per token. In addition to this, it will also offer another 40 million Stacks tokens as a part of its mining program.
These valuations were performed by an independent consultant firm by the name of Foresight Valuation Group. All of the details of the evaluation have been provided to the SEC for review.
How Are Early Investors Benefiting from This?
If the SEC approves this valuation and allows Blockstack to move forward as it plans to, then the 24 accredited investors that are entitled to receive their share of Stacks tokens at $0.00012 per token will see large gains.
They would receive their tokens at the price of $0.00012 against a market value of $0.30. This would translate to more than 2000x the amount that they had invested into the project.