Stacks: The $260M utility token built on a network with less than 10,000 verified users

Blockstack commenced the first SEC approved Reg A+ token offering on Thursday, selling its Stacks tokens to the public at $0.30 apiece (implying a market cap of $260 million based on its distributed token supply of 867 million). Given the current fledgling state of the Blockstack network, which has less than 10,000 verified users, this raises serious concerns around the token's valuation.

Blockstack has been developing an open-source, peer-to-peer network for decentralized applications it calls the Blockstack network. The network went live and started accepting new users in 2015. Three years later, the company introduced the Stacks Token, a utility token which would work as the “economic unit enabling ecosystem members to transact and align incentives” for the Blockstack network.