Analysis of Blockstack's token economics might show why retail investors are down 30%

Quick Take

  • Since STX started trading on Binance, all Reg A+ and Reg S investors (discounting the voucher holders) are now down more than 30%
  • Blockstack says that in order to arrive at $0.30 token valuation, it “has relied on unsolicited preliminary oral indications of interest from its existing investor base”
  • STX’s inflation will be 126% in 2020 and 32% in 2021. Bitcoin’s inflation is currently about 3.7% while Ethereum’s is about 4.5%
  • Even though retail investors are losing money, since everything was properly disclosed in the filings, they have nothing to complain about
Blockstack, a decentralized computing network project led by Muneeb Ali, announced in early September that it has raised about $23 million from more than 4,500 individuals and entities in a Reg A+ and Reg S token sale approved by the SEC. Reg A+ allows private companies to raise up to $50 million from non-accredited public […]

This report is for Research Members

Join The Block Research for exclusive research like this

Gain access to this research piece and 100s of others, including ecosystem maps, company profiles, and topics spanning DeFi, CBDCs, banking and markets. Together with additional services, we help organizations understand what’s happening in the rapidly developing digital asset ecosystem.

Learn More Already a Research Member? Sign In

Related Reading

More