Upcoming IEO: BlockSpaceForce's Equity Strategy
The cryptocurrency investing environment is experiencing an innovative transformation as traditional finance begins to intermingle with blockchain, and BlockSpaceForce leads the charge of developing an equity strategy. This coming IEO, scheduled for late 2025, will be a unique and promising opportunity for investors looking to invest in "blockstocks," which are publicly traded companies that merge crypto assets and traditional equity/stock markets. Focused on digital asset treasuries (DATs) and entities like them, BlockSpaceForce's strategy is designed to funnel returns from efforts to provide diversified and consistent returns in a tokenized fund structure. As institutional investment into crypto-linked equities rapidly increases, this offering may set a precedent for retail investors to participate in these high-growth sectors with relative ease and less direct stock ownership complexity. The target amount for the undertaking is $100 million dollars in assets for the fund. And this IEO will look to provide liquidity for tokens associated with the performance of the actual company, in an exciting event for those interested in emerging opportunities in DeFi.
The equity strategy of BlockSpaceForce will focus their investment strategy on determining companies with meaningful reserves of crypto or that exist at the intersection of crypto/public market, such as treasury manager or blockchain infrastructure companies. The IEO will offer the fund's native token, issued to represent fractional shares of the portfolio, to enable token holders to benefit from distributions from profits of the inaugural set of companies determined as core assets of the fund, which will function in a similar manner to dividends. The model attempts to overcome a key pain point in crypto investing; andEarly signals from private rounds of the fund imply that there is a considerable interest from institutions with several partnerships already in place to ensure compliance across jurisdictions.
Perhaps the most interesting aspect of the IEO has to do with the larger market trend toward hybrid models of finance. In particular, as the prices of Bitcoin and Ethereum have stabilized from their highs in 2024, companies on their balance sheets have seen stock prices increase. BlockSpaceForce is seeking to capitalize on that trend - offering a basket of those types of companies, tokenized.
Another factor for investors to consider is that the token structure will likely have governance rights that will allow the holder of the token to vote on portfolio changes. This type of governance structure is not usually present in a traditional fund structure, and features an element of community to the fund. For more on fund tokenization and regulation in the U.S., see SEC's digital asset guidance.
Although the IEO date is yet to be determined based on the rollout of exchanges, there are some reports suggesting the token will be sold on a major exchange platform (KuCoin or Gate.io - exchanges that appear to only host compliant tokens or token sales/securities). IEO is designed with a tiered price structure to reward early purchasers, and allocations are based on different wallet holdings or staking structure. This creates a democratic sale structure, and the goal is also to entice long-term holders of the token once it lists as this is important for value over time.
Mechanics of the Fund - Tokenizing Traditional Equities
BlockSpaceForce is deploying an equity strategy to tokenize shares of companies with crypto exposure. This tokenization process allows fractional ownership; therefore investors can invest into positions down to $10. To be direct, there is essentially a $0 entry, compared to direct ownership where entry. The fund is researching the underlying treasures of consumer facing companies that have sufficient DATs, like MicroStrategy or Tesla, that have shown durability by having a solid BTC balance sheet. By wrapping these equities into ERC-20 compatible tokens on Ethereum with bridges to other chains, the IEO allows for lending or yield farming on these equities in the DeFi protocols. The tokenization framework will provide a mechanism using smart contracts to automate paying dividends, so profits from underlying companies flow to holders. If the company in the portfolio pays dividends quarterly, the fund contract shall assign dividends in proportion to the tokens owned in the fund. The fund will pay after deducting a small management fee amounting to 1.5%. This function of the fund structure makes dividend payments run smoothly with minimal administration complexity. We think this will build trust in the fund, since all transactions in the fund are on-chain and verifiable by everyone. The strategy will also employ risk mitigation features that are similar such as adjusting rebalance allocations away from losing assets, and by allowing, or utilizing, oracles to reach updated market data feeds to achieve those decisions.
As an aside about the volatility - when considering or operationalizing crypto funds, a lot of telework crypto funds are focused on develop digital-native assets (NFTs, memecoins), however, at BlockSpaceForce, we are interested in established equities as a base against pure crypto volatility. This hybrid has worked in previous cycles when equities holding crypto treasury outperformed. To view other vehicles like BlockSpaceForce, see CoinDesk coverage on tokenized stocks.
Some takeaways to consider if establishing or working on a IEO projects like BlockSpaceForce:
- Having secure legal wrappers to conduct the offerings that are compliant with securities laws in important markets.
- Using custodians to store the underlying equities for security and security.
- Using multi-signature contracts to run the fund to remove a single point of failure in the fund responsibilities.
- Use oracle feeds from vendors like Chainlink for more precise pricing.
Implementing such strategies can turn an IEO from a basic token sale to a holistic investment product.
Strategic Allocation: Digital Asset Treasuries and Beyond
BlockSpaceForce’s equity strategy emphasizes digital asset treasuries as the primary allocation in our positioning, and also in optimizing corporate balance sheets. DATs occur when companies dedicate some of their cash reserves to cryptocurrencies, stemming from the popularity of such strategies made famous by companies like Tesla in 2021. Our fund's algorithm picks candidates on treasury size, management history, and market cap, to develop a multi-sector diversified investment strategy leveraged by tech companies and new blockchain companies. This structure captures upside associated with crypto price appreciation while obtaining stock dividends for a two-pronged yield approach to our token holders.
In addition, DATs, the strategy seeks companies that are building blockchain infrastructure including those working on layer-2 solutions or custody services. Broadening out of pure crypto companies helps to minimize the risk to equity performance with crypto-based exposure, as equity is generally tied to the traditional markets. For instance, during a recessionary environment the value of steady dividend paying stocks can be a buffer while your crypto price shoots up in value. In the IEO we will be committing 60% of the funds raised to dedicated DAT companies, 30% to infrastructure plays, and 10% for cash equivalents to allow for liquidity management.
Every now and again I have a thought, as there are other equity strategies with respect to crypto that will allow traditional finance.
- Determine which companies are disclosing their public crypto treasury via filings
- Find a balance of their holdings between high volatiles of tech and slower-moving smaller payers of dividends.
- Use on-chain analysis to monitor the movement of their treasury.
- Rebalance those quarters in order to be sure you stay close to a target allocation.
Focusing your strategic energy on this space broadens your approach and continues to highlight BlockSpaceForce's IEO as a sophisticated competitive offering to the crypto fund generalist.
Risk Management: Hedging Market Volatility
Part of any investment long alongside risk. Within the BlockSpaceForce equity program, we are reliant on many hedges to protect token holders. The two primary concerns are crypto prices collapsing and affecting DAT valuations, and equity market corrections affecting underlying equity prices. As a solution, the fund has streamlined a derivative solution of options contracts on Deribit, permitting the fund to add a short position to the portfolio in declining signals. This layer of active management is a team of highly qualified "quants" with Wall Street experience who are actively managing the position with the goal of capital preservation while capturing upside.
Liquidity, in context to the IEO, is addressed through relationships and partnerships with market makers post listing that are able to minimize price likelihood quite quickly and straightened in the case of their ours.
Regulatory risk in relationship to potential changes in securities laws is addressed by continuing to structure the token as a utility or operating protocol rather than a security. However, as for all activity, it will continually fluid remain ongoing legal reviews to adapt.
The opportunity will also inevitably broaden geographically, capitalizing on companies in Asia Investors may utilize similar risk management via:
- Setting stop-loss orders for token positions.
- Allocation to assets that are not correlated, such as gold-backed tokens.
- Keeping track of fund performance portfolio reports quarterly.
- Insurance protocols for smart contract coverage via Nexus Mutual.
These strategies can help protect your investments in volatile environments.
Launch Timeline: Planning for IEO Roll-out
BlockSpaceForce is targeting its IEO for Q4 2025, with pre-sale rounds already being conducted with accredited investors. The public sale will occur on a premier exchange such as Binance or OKX, based on experience from other equity-tokenized projects. Wites will open in mid-October, the main sale will be in November, and tokens are subject to vesting over six months to encourage holding.
The preparation involves registering KYC on the exchange and funding your account with a stable coin such as USDT. The team also has plans for road shows at events such as Token2049 to build excitement, and to provide previews of the portfolio to recruit investors.
After the IEO is complete, the fund will be engaged in its first rebalance in December and distributing the potential initial yield to their token holders.
Occasionally timelines slip, but BlockSpaceForce will provide streamlined updates via twitter and the website, which can help lessen anxiety around timing.
If you would like to view potential opportunities for future IEOs, please view CryptoTotem upcoming IEO list.
To prepare for the roll-out with BlockSpaceForce, please follow these suggestions:
- Register early on your exchange to limit processing delays.
- Read the whitepaper to gather the pre-sale and public sale allocation details.
- Limit your budget based on your risk appetite.
- Use the community Discord to discuss whitelist and purchasing tips.
You will be ready for the upcoming roll out when the times comes.
Portfolio Integration: Merging with Existing Portfolio
Incorporating BlockSpaceForce's token within an existing portfolio involves consideration of its equity-crypto hybrid amongst other assets. Investors with a conservative strategy could allocate 5-10% to the token to catch the diversification benefit, without excessive exposure to a hybrid asset class. To further mitigate volatility, pair the token with blue-chip crypto, such as BTC or ETH, since the fund's DAT focus is positively correlated during bullish equity cycles but can act as a hedge during bearish equity cycles.
For aggressive portfolios, consider a combination with pure play DeFi tokens, which extracts additional yield by reinvesting the distributions from the fund back into the DeFi tokens. Tax consequences vary across jurisdictions, but in the U.S., the returns will be taxed the same as any capital gain, but be sure to track your basis accordingly. Also, the liquidity of the tokens on a DEX post IEO will help you adjust the allocation freely within your portfolio.
One last note here - the incorporation of this type of strategy can smooth returns rather well, as a generally, equities provide a smoother return profile within the volatility that the crypto space can bring to your portfolio. For additional tips on how to diversify your portfolios at Vanguard, see their website for their diversification guide.
To integrate BlockSpaceForce's token into your portfolio:
- Identify the token correlation with your current holdings with a service like CoinMarketCap
- Leverage automated rebalancing services to remain hands-off
- Pay attention to macroeconomic data to see how it will most likely affect equities
- Make slight adjustments based on quarterly output of the fund
The integration will add additional performance to your portfolio’s performance.
Growth Projection: Anticipated Outcomes Following the IEO
At post-IEO maturity, our projection for BlockSpaceForce's equity strategy is to reach $500 million in assets under management (AUM) by mid-2026, as institutions and funds continue to invest in crypto treasuries. There is also a reasonable expectation of the price of the token reaching $1 or more by the end of the year, if a company that utilizes the Distributed Advertising Technology (DAT) strategy continues to perform well on a price to earnings style multiple comparable to those of historical multiples of like funds. The expected yields should be in the range of 8%-12% while incorporating yields from equities and appreciation from crypto. Market analysts anticipate a compounded annual growth rate (CAGR) of 20-30% for tokenized equity funds, which is good news for BlockSpaceForce. While long bear markets are always a risk, defensive hedges in this strategy will do a good job of resilience.
Our projections for IEO performance in similar IEOs include:
- Monitor AUM milestones to identify time periods where there is an uplift in value.
- Monitor token velocity on exchanges for health of liquidity.
- Monitor competitors flows for sector analysis.
- Monitor on chain data for holder distribution.
These projections all influence our data on holding some of these currencies.
Community Engagement: Building Pre-IEO Momentum
BlockSpaceForce is engaging its community through AMAs and social challenges to build momentum leading into the IEO. Discord channels are non-stop chatter around equity picks, while Twitter polls are determining what is picked for each portfolio. Engagement builds loyalty, and users feel they are part of the direction of the strategy.
The team will hold webinars to explain the utility of the tokens announced during the Pre-IEO. These educational webinars are attracting thousands of views. Community incentives, such as bonus token allocations for referrals, further drive engagement.
To engage communities leading into your next IEOs:
- Host AMAs or Q&As to build confidence and transparency.
- Contests for the chance to win tokens (e.g. retweet for tokens).
- Build out basic strategy education for your community.
- Seek out advocates and form an ambassador program.
This engagement builds momentum in the lead up to launches.
Conclusion
BlockSpaceForce's upcoming IEO has a compelling equity strategy, connecting crypto and traditional markets and giving any investor a tokenized avenue to allocating in relatively high-potential companies. The fund is investing in Development Asset Tokens (DATs) and companies that build out infrastructure, giving a diversified exposure with built-in hedges across the volatility inherent in the market but still aiming for consistent yields. Additionally, the structured tokenization process and active management can distinguish this fund from most others, potentially showing significant post launch performance in a mature sector.
As the IEO draws closer, early participating investors get the surface level advantages of cost and governance benefits, to position them for potential long-term success. While risks are always present, the funds informed approach to investing coupled with a fully transparent operation makes the fund a prime candidate to consider for any diverse portfolio looking for a hybrid finance weighted approach.