Investors snap up Kraken stock in $10.2 million tokenized equity offering

Kraken, one of the oldest cryptocurrency exchanges, reached out to its customers via email offering them tokenized stock in the company.

Companies in the crypto industry have been coming up with ways to raise funds for almost a decade now, and have gone full circle from ICOs all the way to IEOs.

One of the oldest cryptocurrency exchanges in the world is looking past these crypto-specific funding methods and is instead going head first into selling tokenized equity as a security token offering.

Kraken, a San-Francisco based crypto exchange founded in 2011, reached out to its customers offering preferred shares of its stock.

If Kraken raises the maximum $10.2 million for a 0.255 percent equity stake, then the company would boast a value of $40 billion.

The exchange partnered with Bnk to the Future, a global online investment platform that allows qualifying investors to invest in alternative financial products, including crypto companies.

If Kraken raises the full amount it would make the offering one of the largest successful security token offerings.

In 2016, Kraken acquired Cavirtex, Canada's oldest crypto exchange that became the first crypto company to sell its own stock.

The company then faced a class action lawsuit from investors after offering to buy back their stock for an amount 4 times less than their market value.

Kraken still owns the company that owes money to its investors.