SEC Approves YouNow’s Ethereum Token ‘Props’ With a Reg A+ Reward
Coinspeaker
SEC Approves YouNow’s Ethereum Token ‘Props’ With a Reg A+ Reward
After cracking the whip on initial coin offerings (ICOs), the U.S. Securities and Exchange Commission (SEC) approved the first two RegA+ tokens. These tokens provide investors, including the unaccredited ones; with an alternative method to acquire a financial stake in a company. Blockstack got approved for a $28 million digital token sale to raise money on Coinlist. That token sale was officially launched on July 11 despite some earlier technical problems.
On the other hand, influencer live-streaming app YouNow’s spin-off Props got formal approval for a consumer utility “Howey” token. Users can now earn that token which, in turn, enables them to enjoy loyalty perks in multiple apps. Props token is described as an ethereum-based blockchain token that integrates with various streaming platforms including YouNow and XSplit.
Once they enroll for the program, users and creators of the streaming platforms can get tokens as rewards for their contributions and participation. The Prop’s approval was announced on July 11 with YouNow stating that it will start rewarding content creators with Props. To get these rewards, the content creators need to initiate in-app activities that ‘drive community engagement.’
Users will also get tokens for their activities and engagements with the platform. In the official statement, YouNow announced that it will start distributing around 187 million tokens to the creators and users as stipulated in an SEC filing.
Moreover, the firm will incentive users to earn Props by giving VIP status and enhancing their purchasing power of an in-app currency dubbed Bars. Exclusive items and discounts will soon appear on offer for the Props holders.
The Strategy
Reg A+ is a method of rewarding early investors. These rewards will also galvanize users around a product by leveraging them with a vested interest. According to the filing, every token had a value of $0.1369 during the launch. Nevertheless, demand for this token may surge as the platform grows. Thus, the token holders may earn a profit with time.
That method incentivizes the Props holders to develop the network continuously. Furthermore, these tokens are transferable between different wallets and applications although they cannot be exchanged for fiat currencies. Currently, four applications have integrated with the token network.
In a TechCrunch report, it was published that Props worked with the SEC for two years prior to its receiving the approval. They did that for the SEC to ensure that they were not misleading investors or even inappropriately engaging in activities to raise capital illegally.
The company even pre-sold $22 million worth of tokens to various investors including Comcast, Union Square Ventures, and Venrock. At the time, the company wrote in its SEC Edgar filing:
“Pending other uses, we intend to invest the proceeds in interest-bearing, investment-grade instruments, certificates of deposit, direct or guaranteed obligations of the U.S. government, crypto assets or hold as cash.”
SEC Approves YouNow’s Ethereum Token ‘Props’ With a Reg A+ Reward
OhNoCrypto
via https://www.ohnocrypto.com
Wanguba Muriuki, Khareem Sudlow
