KAST Founder Says Platform Will Not Issue a Token, Convert Points Into Pioneer Units

KAST co-founder and CEO Raagulan Pathy said the stablecoin payments platform will not issue a token and will convert user points into KAST Pioneer Units. According to ChainCatcher, Pathy said the units will be issued by a special-purpose entity affiliated with KAST, which he described as the practical route to issuing them globally; users are expected to accept the conversion promptly, with more details planned for the app in early December. He said regulatory restrictions limit how the company can describe the arrangement, which involved a lengthy process with leading law firms, investor approval, several million dollars in setup costs, and legal opinions in dozens of countries. KAST plans periodic redemption events but cannot legally promise specific amounts or dates, or whether the units’ value will rise or fall. Pathy argued that tokens in the crypto-card and neobank sectors have generally failed to maintain their prices and can leave token holders exposed to volatility while founders and investors exit. He said keeping the team’s and investors’ interests in equity removes that option, adding that he has only bought KAST equity on a net basis and has never sold. Pathy said issuing a token would conflict with the goal of building a company worth more than $100 billion, and described Pioneer Units as a longer-term outcome.