1/ Today I looked at Blockstack's token economics. Blockstack's native token, STX, listed on Binance last week in exchange for a yearly payment of 0.83M STX. The price of STX is now down by more than 30% for Reg A+ investors and down by 50% since last week's ATH on Binance 
2/ Blockstack 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. It cost Blockstack an estimated $3.5 million to comply with Reg A+ and Reg S requirements.
3/ The tokens in those offerings were sold for three different prices:
Reg A+ (available to non-accredited U.S. investors) — $0.30
Reg S (available to investors outside of the U.S.) — $0.25
Reg A+ voucher program (available to early community members) — $0.12
Reg A+ (available to non-accredited U.S. investors) — $0.30
Reg S (available to investors outside of the U.S.) — $0.25
Reg A+ voucher program (available to early community members) — $0.12
4/ STX was listed last week and started trading at around its Reg A+ price. In the first 24 hours, the price grew by more than 30% to nearly $0.4. Since then, the price has been slowly dipping and now trades at less than $0.2. In terms of USD, STX has lost 50% in the last 5 days
5/ More importantly, though, all Reg A+ and Reg S investors (discounting the voucher holders) are now losing money. U.S. investors that bought STX for $0.30 in 2019 are now down more than 30% on their STX investment.
6/ Why were STX tokens priced at $0.30 in Reg A+? Blockstack says that in order to arrive at $0.30, it “has relied on unsolicited preliminary oral indications of interest from its existing investor base.” That’s at least a bit ironic right?
7/ About 386 million STX of its 1.32 billion supply is currently unlocked (~29%). A total of 441 million STX is expected to be unlocked by the end of 2019,— 36% belonging to employees, founders, and Series A investors and 52% belonging to Reg D investors.
8/ Series A investors who had invested a total of $5.1 million as of late 2016 could purchase tokens at a nominal price. Therefore, they were able to get tokens for less than $0.05 each. Reg D investors purchased the tokens for $0.12 each.
9/ In 2019, STX’s inflation, calculated as a yearly increase in the circulating (unlocked) supply, was 470%. In 2020, STX’s inflation will be 126% and in 2021, it will be 32%. In comparison, Bitcoin’s inflation is currently about 3.7% while Ethereum’s inflation is about 4.5%.
10/ It’s also important to note that Blockstack still has about 31.5% of the existing supply. Moreover, the founders Muneeb Ali and Ryan Shea own 13.6% of the total supply, which is more than Reg A+ and Reg S combined.
11/ It turns out that an arbitrarily set price of $0.30 is not working too well for Blockstack’s retail investors. But since everything was properly disclosed in the filings, these investors have nothing to complain about. All of this information was transparently disclosed.
