Stablecoin payment platform KAST founder: No token issuance, points converted to Pioneer Units

Raagulan Pathy, co-founder and CEO of the stablecoin payment platform KAST, posted on X in response to emails regarding the conversion of user points into KAST Pioneer Units. He stated that the company's available expressions are constrained by regulations in various countries; the plan has undergone a lengthy process with top law firms and received investor approval, with setup costs reaching millions of dollars, and legal opinions obtained from dozens of countries.

Pathy confirmed that KAST Pioneer Units will be issued by a special purpose entity associated with KAST, which is currently the practical path for issuance globally, and user points will be converted into these units. The company will arrange regular redemption events but cannot legally promise specific amounts, dates, or guarantee an increase or decrease in value. Users need to accept the conversion as soon as possible, with relevant details expected to be announced in the app in early December.

Regarding the decision not to issue tokens, Pathy stated that historically, no projects in the crypto card and new banking sector have delivered tokens whose prices did not decline; tokens often do not align with community interests, and founding teams and investors can often exit, while token holders bear the volatility and price downturns. He mentioned that not issuing tokens means the team and investors do not have that option, and their rights remain locked in equity; he himself has only net purchased KAST equity and has never sold. He believes that issuing tokens contradicts the goal of building a company worth over $100 billion and considers Pioneer Units to be a more long-term outcome.