Larry Cermak, Research Director of The Block, today analyzed the sale and price changes of Blockstack's native token STX. STX officially landed in the currency security last week, and the initial sale price is the Reg A+ price ($0.30). However, after experiencing a surge in the previous day, the price of STX fell all the way, and the relative issue price has fallen by more than 30%. Currently, about 386 million STXs in Blockstack's 1.32 billion supply have been unlocked (about 29%), and 441 million STXs are expected to be unlocked by the end of 2019, 36% of which belong to employees, founders and A-round investors, while A-round investment The cost of about 100 million tokens is less than $0.05.
Source: Coin Security
Blockstack is the first token-issuing project to receive Reg A+ exemptions, and its compliance has received much attention. In SEC-approved Reg A + and Reg S token sales, Blockstack has raised approximately $23 million from more than 4,500 individuals and entities. In order to meet the requirements of Reg A + and Reg S, the cost of Blockstack is estimated to be $3.5 million.
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Blockstack tokens are sold at three different prices:
Reg A + (for non-qualified investors in the US), $0.3 Reg S (for investors outside the US), $0.25 Reg A + coupon program (for early community members), $0.12
After the STX was put on the shelves, the issue price was Reg A + price ($0.30). In the first 24 hours, STX prices have risen by more than 30%, close to $0.40. Since then, prices have been slowly falling, and now trading prices are below $0.20. In dollar terms, STX has fallen 50% in the past 5 days.
More importantly, however, all Reg A + and Reg S investors (excluding coupon holders) are now losing money. The current price of $0.1936 is already less than $0.30 for Reg A+ and $0.25 for Reg S.
So why is the price of STX tokens in Reg A + $0.30? Blockstack said that the issue price is set at $0.30 "based on the initial verbal intent of the existing investor community."
Currently, about 386 million STXs in Blockstack's 1.32 billion supply have been unlocked (about 29%). It is expected that 441 million STXs will be unlocked by the end of 2019, of which 36% belong to employees, founders and A-round investors, while 52% belong to Reg D investors.
At the end of 2016, A-round investors invested a total of 5.1 million US dollars to purchase tokens for less than 0.05 US dollars. Investors at Reg D can purchase tokens for $0.12 each.
According to data given by Larry, in 2019, the inflation rate of STX (calculated as the annual increase in circulation supply) was 470%. By 2020, STX's inflation rate will drop to 126% and will fall to 32% by 2021. In contrast, the inflation rate of Bitcoin is currently about 3.7%, while the inflation rate of Ethereum is about 4.5%.
It should also be noted that Blockstack still has 31.5% of the existing supply. In addition, founders Muneeb Ali and Ryan Shea have a total supply of 13.6%, more than the combined total of Reg A + and Reg S.
As it turns out, for Blockstack's retail investors, the price setting of $0.30 is not ideal. However, since all the content in the document has been properly disclosed, these investors have nothing to complain about. All of this information is transparent and open.