xStocks’ co-founders previously led DAOstack, a 2017–2018 ICO project that raised $30 million but closed operations in late 2022.
DAOstack’s GEN token never surpassed its funding price, crashing in 2021 and declining to near-zero before the team shut it down.
DAOstack launched the Common Open Development initiative post-shutdown, offering shared ownership for contributors building the Common platform.
The three co-founders behind xStocks, the stock tokenization issuer under Backed Finance, previously worked at DAOstack, according to LinkedIn profiles reviewed by Wu Blockchain. DAOstack, once a prominent DAO infrastructure project, raised nearly $30 million during its ICO and private funding rounds between 2017 and 2018 but shut down in late 2022 due to capital exhaustion.
DAOstack Raised Millions but Never Recovered Post-2021 Crash
DAOstack aimed to build governance tools for decentralized autonomous organizations, launching products like the Arc modular framework and the Alchemy DAO platform. Despite early traction, the GEN token tied to the project failed to deliver returns. GEN never crossed its ICO funding price, even during peak market conditions. The project collapsed further after the 2021 crash, with its token trending toward zero.
By the end of 2022, DAOstack Limited announced its closure, stating that it had exhausted its capital reserves. It shifted its final efforts toward the Common platform but failed to bring it to market readiness.
COD Program Offers New Path After Shutdown
Following its shutdown, DAOstack launched the Common Open Development (COD) program. Under this initiative, external contributors are granted non-exclusive rights to build and launch the Common product. Participants retain ownership of their input and share any future proceeds proportionally.
DAOstack holds rights to prior developments, while contributors can jointly develop or sell the platform moving forward. The initiative reflects the team’s ongoing efforts to keep the Common concept alive, despite internal setbacks.
xStocks Rises as Backed Team’s DAOstack Ties Surface
The DAOstack connection adds context to the recent attention surrounding xStocks. While the new venture is gaining traction in stock tokenization, it now follows a project that failed to meet its original goals. Wu Blockchain’s post brings renewed focus on the leadership’s history, raising questions about execution and continuity.
As xStocks grows, industry observers are watching how Backed Finance navigates legacy concerns tied to its leadership's prior project.
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