2500x Returns:This [Regulated?] Crypto Token Awaits a Staggering Yield

Blockstack, which has filed with the U.S. Securities and Exchange Commission (SEC) to potentially become the first registered crypto token offering, has revealed some of the details of its planned steps in its regulated token sale.

If approved by the SEC, Stacks token will be sold in three different categories: 215 million tokens will be sold at a rate of $0.12 per token to token voucher holders; 40 million tokens will be sold to accredited investors putting in $5 million or more at a rate of $0.30 per token; and 40 million tokens will be sold in a deal involving the Blockstack app mining program.

According to the official document filed with the SEC, 24 accredited investors that include the affiliates of the Harvard Management Company, purchased around 323 million Stacks tokens at a rate of $0.00012 per token.

If Stacks tokens are sold at a rate of $0.30 per token as planned after the application is approved by the SEC, it would immediately result in a 2,500-fold return for the 24 accredited investors that purchased Stacks token at a rate of $0.00012 per token.

Far Exceeds Benchmark’s Staggering Uber Return From Series A Funding

On Friday, reported that Benchmark, a San Francisco-based venture capital firm, invested $9 million in Uber’s Series A funding round.

According to a WSJ report, that $9 million would be valued at $6.9 billion upon Uber’s highly anticipated IPO that would place the price of Uber’s stock at $55 per share.

A $6.9 billion return from a $9 million investment would result in a 766-fold return, which would place Benchmark’s investment in Uber amongst the best venture capital deals in modern history.

In comparison, the early investors in Stacks token that include the affiliates of the Harvard Management Company are en route to seeing a 2,500-fold return in a much shorter time frame.

The official document of Blockstack Token LLC filed with the SEC reads:

The token advisory board consists of seven members. Three of the members, Charlie Saravia, Zavain Dar and Rodolfo Gonzalez are designees of affiliates of the Harvard Management Company, Lux Capital and Foundation Capital, respectively, limited partners of the QP Fund which have purchased an aggregate of 95,833,333 Stacks Tokens; the board also consists of four independent members, Koen Langendoen, Arvind Narayanan, Arianna Simpson and Catherine Tucker.

Will Crypto See More Regulated Approach in the Future?

As Marco Santori, the president and chief legal officer at Blockchain said, the Blockstack team took an important step forward in blockchain development by taking a route that no other project had successfully taken in the past.

If approved by the SEC, considering the regulatory uncertainty involving crypto tokens, it is likely that more projects will take the route of Blockstack to focus on product development rather than on evaluating the complexities of regulatory compliance with securities law in the U.S.

“We’ve been in a confidential submission process with the SEC, making progress as we drive towards an SEC-qualified token offering. Recently, U.S. markets have been closed to crypto projects given regulatory uncertainty, and we believe in opening the U.S. markets to innovation in this area,” Muneeb Ali, the CEO of Blockstack PBC, said.

Last modified: March 4, 2021 2:44 PM

Joseph Young

Financial analyst based in Seoul, South Korea. Contributing regularly to CCN and Forbes. I have covered the stock market and bitcoin since 2013. Reach him on Twitter or LinkedIn.