KAST co-founder and CEO Raagulan Pathy said user points will be converted into KAST Pioneer Units, responding on X to questions around an email sent to users about the plan. He said the structure is constrained by rules across multiple jurisdictions, has gone through a long process with top-tier law firms, received investor approval, and cost several million dollars to build. According to Pathy, the company has also obtained legal opinions in dozens of countries.
Pathy said the Pioneer Units will be issued by a special purpose entity affiliated with KAST, which he described as the practical route currently available for global issuance. He added that KAST plans to hold periodic redemption events, but cannot legally promise a specific amount, date, or any increase or decrease in value. Users are being asked to accept the conversion as soon as possible, with more details expected in the app in early December.
He also explained why KAST is not issuing a token. In his view, crypto card and neobank projects have not historically delivered tokens whose prices did not fall, and token structures often diverge from community interests. He said founders and investors can often exit, while token holders bear volatility and downside. Pathy added that he has only been a net buyer of KAST equity and has never sold.
KAST co-founder and CEO Raagulan Pathy said on X that user points will be converted into KAST Pioneer Units, addressing questions tied to an email about the plan.
Pathy said the company’s wording is constrained by rules in different countries. He described the structure as the product of a long process with top-tier law firms, said it was approved by investors, cost several million dollars to build, and has received legal opinions in dozens of countries.
How the Pioneer Units will be issued
Pathy said KAST Pioneer Units will be issued by a special purpose entity affiliated with KAST. He described that as the practical route currently available for global issuance, and said user points will be converted into those units.
He added that the company will arrange periodic redemption events, but cannot legally promise a specific amount or date, and cannot promise whether value will rise or fall. Users need to accept the conversion as soon as possible, with more details expected to be released in the app in early December.
Why KAST is not launching a token
On the decision not to issue a token, Pathy said that in the crypto card and neobank sector, no project has historically delivered a token whose price did not decline. He also said tokens are, in most cases, misaligned with community interests, because founders and investors can often exit while token holders are left carrying volatility and downside.
He said avoiding a token means the team and investors do not have that option, with their interests still locked in equity. Pathy added that he has so far only been a net buyer of KAST equity and has never sold.
He also said issuing a token runs against the goal of building a company worth more than $100 billion, and argued that Pioneer Units are the better long-term outcome.
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