USV, Winklevoss Bros and More, Invest in Blockstack’s ICO
After launching in November, Blockstack’s ICO has officially closed. The company announced the news today, adding that they met the $50 million mark through the sale of 440 million tokens. Big name investors contributed to the coin sale including Union Square Ventures (USV), Foundation Capital, Lux Capital, Winklevoss Capital, Blockchain Capital, Digital Currency Group, Y Combinator partner Qasar Younis, TechCrunch founder Michael Arrington and Digg founder Kevin Rose.
This cryptocurrency celebrity list of investors are backing Blockstack’s vision for a decentralized web built on blockchain technology. To realize that goal, Blockstack’s token will run on the company’s virtual-chain technology, according to the white papers. Blockstack mentioned that the big name players who contributed to the ICO are viewed as long term partners, as they all agreed to take long positions on the new cryptocurrency.
The long term vision shared by investors can be demonstrated by the largest investment from an undisclosed endowment, securing a $6 million allocation after agreeing upon a four year lock up for just half of its allocation. Co-founder of Blockstack, Muneeb Ali stated; “I think it’s more like a funding round, with high-quality sophisticated investors, rather than random people just throwing money at something.” One again, based on the credible list of investors above, Ali’s case for ‘sophisticated investors” is certainly on the money, and can influence the demand of the token as novice investors want to ride the curt-tails of the established investors.
According to Blockstack, over 800 people and entities participated in the token sale, where the minimum investment was $3000 and the median investment was $6,140. Of the $50 million acquired only $10 million will be immediately available to the company. The company will receive more money after they reach each set milestone, a strategy put in place to ensure progress among the company. Blockstack will receive another $20 million when its board of advisors verifies it has delivered the next version of the product, a network that integrates the token. The last $20 million will be obtained when the company achieves its final goal of one million verified users.