Blockstack ICO Attracts Institutional Investors, Raises $50 Million
Blockstack closed their initial coin offering on December 1st, selling a total of 440 million coins that racked up an impressive $50 million in revenue. The ICO launched back on the 16th of November and included no presale.
Presale or not, the ICO still saw plenty of attention from big name players. A healthy mix of venture capital firms and tech icons contributed to the ICO’s funding, including Union Square Ventures, the Winklevoss twins, Foundation Capital, Digg Founder Kevin Rose, and Techcrunch Founder Michael Arrington. Two crypto venture capital firms, Blockchain Capital and the Digital Currency Group, also invested in the ICO.
The Value of Long-term Investors
The Blockstack team likes to view their key investors as partners before anything else. Unlike the casual investor who may turn to ICOs to make a quick buck, these investors are in Blockstack for the long-haul.
Cofounder Muneeb Ali certainly thinks as much. In a statement to CoinDesk, he spoke on what he believes differentiates Blockstack’s ICO from the rest:
I think it’s more like a funding round, with high-quality sophisticated investors, rather than random people just throwing money at something.”
These “high-quality” investors certainly entered into more serious, binding agreements than your average ICO. The key contributors agreed to lock-up a maximum of $3mln tokens for at least a two year period, and one undisclosed contributor even obliged to a four year lock-up.
Blockstack Moving Forward
The $50mln in revenue from Blockstack’s ICO came from accredited investors. These investors include the venture capital firms, tech icons, and anyone who could contribute a minimum of $3,000 to the offering.
For those wishing to purchase up to $3,000 worth of the ICO-priced coins, an additional 440 million tokens have been set aside. These investors reserve their tokens by applying for free vouchers, which they may redeem at a later date specified by the Blockstack team.
Of the funds raised, the team currently only has access to $10mln. Upon launching their network, another $20mln will be approved for release by their board of advisors. The last $20mln will be freed-up after after the Blockstack platform achieves 1,000,000.
The Blockstack protocol will be a decentralized web platform that will allow content to be hosted and published through Blockstack’s blockchain. The development team hopes to launch the platform by the end of 2019.