Harvard Endowment Invested up to $12.65M in Blockstack Token Sale

Harvard’s $37.1 billion endowment fund has reportedly invested $12.65 million in Blockstack.
The New York-based blockchain toolmaker lately applied with the Securities and Exchange Commission (SEC) to raise $50 million. The application submitted to the US securities regulator detailed the name of Blockstack’s advisory members. Among those names was Charlie Savaria, one of the recently appointed managing directors for the Harvard Management Company.
Mr. Savaria, according to the document, alongside other six advisory members purchased an aggregate of 95,833,333 BlockStack digitized equities, called Stack Tokens (STX). At the time of selling, the STX rate was $0.0132, meaning that Blockstack attracted as much as $12.65 million from its advisory board via the coin sale.
According to Anthony Pompliano, the co-founder of Morgan Creek Capital, Mr. Savaria could have at least invested $5 million in the emerging blockchain venture. NewsBTC could not verify the amount at the time of this writing.

BREAKING: Harvard’s endowment invested $5M – $10M directly into Blockstack’s token sale.
This means that one of the leading university endowments is comfortable holding tokens directly.
THE VIRUS IS SPREADING
— Pomp (@APompliano) April 11, 2019

Launched by computer scientists from Princeton University, BlockStack is developing a privacy-focused internet harnessing the underlying features of the blockchain technology. The startup already features 80 applications that do everything from managing work documents and offering subscription-based content services in a decentralized environment.
Blockchain raised $50 million last year in a venture investment round from Union Square Ventures, Y Combinator, Lux Capital, Naval Ravikant, and others.
Blockchain Unfenced
Harvard’s alleged investment in a blockchain startup followed its capital injection into two cryptocurrency funds last year. The outlook proved the university was gradually increasing its stakes in the blockchain industry despite skepticism. First Round Capital, for instance, surveyed 529 startup founders last December. It found that 87 percent of the respondents did not believe blockchain will succeed.
“Projects based on the elimination of trust have failed to capture customers’ interest because trust is [actually] so damn valuable,” stated Kai Stinchcombe, the co-founder, and chief executive of True Link.
Nouriel Roubini, a US-based economist who rightly predicted the 2008 financial crisis, said the blockchain’s recordkeeping ledger was no better than an MS Excel sheets.

Why blockchain is the most useless and over-hyped technology ever. Not a single properly useful and working application after billions literally wasted on vaporware by a self-serving eco-system.
The Big Blockchain Lie by Nouriel Roubini @ProSyn https://t.co/nqC2FsJtPl
— Nouriel Roubini (@Nouriel) January 10, 2019

The criticism was not able to put fences around the blockchain, anyway. The world kept taking notice of the technology’s trend, leading tech companies like IBM and Intel launching new projects in the space. Even banks like JP Morgan, that were once critical of Bitcoin, an open-source, decentralized payment protocol system based on the blockchain, announced their services powered by a similar tech – albeit closed-source.
Harvard’s alleged investment proved that investors were beginning to look beyond criticism and make the most out of the so-called blockchain frenzy.
Blockchain-Not-Bitcoin
Does the Blockstack funding round mean anything to bitcoin? Not in near-term at least.
The startup’s crowdfunding does not hold any promises to the most dominant asset in the cryptocurrency world. It is a straightforward fundraiser that focuses on raising capital so a startup could create its products and distribute its earnings among the stakeholders – the ones with the proof-of-ownership of STX tokens. Bitcoin does not get a mention anywhere.
Nevertheless, the report helps in making a case for Bitcoin’s long-term potential in the industry. It allows institutional investors to study its underlying technology and make their investment decisions accordingly.
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ConsenSys is Partnering With Harvard: a Big Milestone For Ethereum in the US?

Blockchain tech firm and startup incubator ConsenSys will be collaborating with the likes of Harvard University, self-proclaimed “think tank” New America, and iconic denim brand Levi Strauss & Co. on a new initiative to bring Ethereum-based blockchain technology into the workplace in an effort to improve the overall health and safety of workers.
The news could also potentially further legitimize Ethereum in the United States by being at the center of the collaboration.
Harvard’s Workforce Well-Being Program Partners With Levi’s and ConsenSys
ConsenSys, an Ethereum-focused blockchain firm that’s struggled during the current bear market, is partnering with San Francisco-based American clothing brand Levi Strauss & Co., New America, and the Harvard T.H. Chan School of Public Health on an initiative that uses blockchain to provide additional transparency into the health and work conditions of the employees working for Levi Strauss.
The project, funded by a grant from the U.S. State Department, will host a survey on the Ethereum blockchain that will help executives evaluate the work environment at factories operated by the clothing brand. Workers will be required to self-report annually, providing valuable insight to Levi Strauss. The survey will be rolled out to three of Levi’s factories in Mexico and serve some 5,000 employees, according to Reuters.
Related Reading | ConsenSys and Amazon to Launch Ethereum Marketplace for Enterprise Blockchain
The survey itself was developed by Harvard’s public health school that focuses on “sustainability and health” for the benefit of both businesses and their employees, while the blockchain tech will be provided by the Joseph Lubin-led ConsenSys.

The collaboration was first revealed by Lubin in a tweet, explaining that the goal of the project is to “replace outside auditors” at factories, helping save money, increase transparency, and to gain invaluable insight into the work conditions of factory workers. The inclusion of blockchain technology and Ethereum’s immutable ledger ensures the results of the survey cannot be tampered with.
Ethereum Gets a Vote of Confidence By Harvard and Major US Corp
Ethereum has taken a beating during the current bear market, falling as much as 94% from its all-time high of nearly $1,400 before rebounding to current prices. It’s caused many to question the long-term validity of Ethereum as a platform for smart contracts, however, Ethereum has merely been a victim of the fallout from the initial coin offering boom.
Using the ERC-20 standard, companies began launching new tokens on Ethereum’s blockchain via initial coin offerings en masse, accepting Ethereum in exchange for the new token. However, when the market turned ICO treasuries began liquidating their holdings in order to fund future operations alongside scorn investors panic selling, causing a snowball effect in Ethereum’s price decline.
Related Reading | Research Reveals Interesting Results On ICO Related Ethereum Price Swings
However, this new partnership with one of the world’s most prestigious universities, a major U.S. clothing brand known for its iconic jeans, and having received funding from the U.S. State Department shows that Ethereum’s base technology is just as legitimate as ever.
The vote of confidence and major milestone for the number three cryptocurrency by market cap should spark new interest in Ethereum, both as an asset to invest in, as well as a technology with untapped potential and well-deserved merit.
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