KAST co-founder and CEO Raagulan Pathy said the stablecoin payments company will not issue a token, saying its team and investors should remain tied to company equity as eligible points in the standard program convert to Pioneer Units.
Pathy said issuing a token would conflict with his goal of building a company worth more than $100 billion. He argued that tokens in crypto-card and neobank projects have historically fallen in price, while founders and investors can often exit and token holders bear the volatility. He said he has only been a net buyer of KAST equity and has never sold.
Pathy said a special-purpose entity associated with KAST will issue the units, which he described as a practical route for global issuance. He said the structure went through a lengthy process with major law firms, received investor approval, cost several million dollars to establish and drew legal opinions in dozens of countries. The units are contractual rights without ownership or voting rights in KAST. They cannot be sold or traded and do not guarantee cash value or payment.
Pathy said KAST plans periodic cash-out events but cannot legally promise their amounts or timing. He also said the units’ value could rise or fall. He urged users to accept the conversion promptly, with more details expected in the app in early December.
Under KAST’s earlier points-conversion plan, points earning in the standard program ends Nov. 30, with eligible balances due to convert in the first week of December. U.S. users are on a separate track with no conversion date announced.
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to [email protected].
