Harvard Management Company, the largest academic-endowment in the world, has invested in a forthcoming token sale by Blockstack, a full-stack decentralized computing network.
Thursday, Blockstack submitted a Regulation A+ crowdfunding exemption application to the SEC, stating their intent to hold a $50 million token sale. According to the filing, Harvard Management Company has already purchased 95.8 million of the company’s tokens valued at about $11.5 million.
A Regulation A+ exemption allows startups to sell either $20 million or $50 million worth of securities to non-accredited investors, without having to register them. It requires both approval and oversight from the SEC but was designed as part of the JOBS Act to be more flexible than an IPO.
If approved, Blockstart will sell a total of 295 million STX tokens at $0.30 each.
Why This Matters
Morgan Creek Digital’s Anthony Pompliano asked Blockstack CEO, Muneeb Ali, why the company decided to take this approach in launching an ICO and his answer is important. ,
“Blockstack could iterate their technology to conform with existing laws faster than regulators could iterate laws to conform to new technology," said Ali.
Blockstack, like many ICOs, is looking to create a decentralized token that follows U.S. regulations. The lack of clear cut rules forced them to find a creative alternative within the existing regulatory ecosystem. There’s no guarantee that they’ll be successful, but their efforts are promising. Equally as encouraging is the support from Harvard’s $37.1 billion endowment. The support from leading institutions will help drive mass crypto adoption and will likely warm regulators.
Bulls Aren’t Backing Down
While the SEC considers the filing, the bulls are fighting hard. For the second week in a row, the market saw tremendous volatility. Bitcoin hit a high of $5,402 Wednesday before a sell-off brought it back down to the $5,200 range. After a slight dip below $5,000, Bitcoin bounced back, holding around $5,072 Friday morning.
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