Blockstack is one of the first blockchain companies to have raised funds through a Reg A+ offering. The company has now hired GSR Markets to trade its native stacks (STX) tokens. GSR will be paid to introduce liquidity to STX tokens outside of US markets.
Blockstack recently raised $23 million
Blockstack has raised 23 million US dollars in its Reg A+ fundraising, around one-third of which came from Asian investors.
GSR to be paid $20k each month for trading STX token
GSR has charged a setup fee of 100,000 US dollars with a monthly payment of 20,000 US dollars for six months. GSR will increase accessibility in regions outside of the US as well as gather insights about market conditions.
Blockstack has also agreed to loan one million US dollars worth of Bitcoin and Ether with zero interest to fund the trading. If the agreement is terminated, GSR will have to return the Bitcoin and Ether with half of the sum calculated by comparing the value of the assets against the value of the STX token.
GSR will be using its trading bot to support the trade of STX. It will provide daily insights into STX’s market activity. GSR would also analyze market conditions and search for exchanges that Blockstack can approach for listing STX. However, GSR would not operate in the United States.
Hiring experts to provide liquidity has been common in the traditional markets; now, it is becoming a trend in the crypto markets as well. These “market makers serve a crucial role in thinly traded markets, according to Eric Wall, a former employ at Cinnober. Wall added that without such market makers, these assets would become too volatile due to insignificant trading.