SEC Gives YouNow’s Ethereum Token ‘Props’ Reg A+ Approval
The U.S. Securities and Exchange Commission (ICO) has granted an ethereum-based token a Reg A+ qualification, the startup YouNow said Thursday.
Props is an ethereum-based blockchain token that integrates with streaming platforms like YouNew and XSplit to reward users and creators with tokens.
YouNow – which developed the Props blockchain – announced today that it will begin rewarding content creators with Props for in-app activities that “drive community engagement.” Users will also begin to receive tokens for engaging with the platform. YouNow will begin by distributing a total of 187 million tokens to users and creators, according to an SEC filing.
The video-streaming firm will incentive users to earn Props by offering VIP status and boosting their purchasing power of an in-app currency called Bars. Exclusive items and discounts will also be on offer to Props holders.
Reg A+ is a way to reward early investors, as well as galvanize users around a product by giving them a vested interest. At launch each token was valued at $0.1369, according to the filing. However, as the platform grows, demand for the tokens may rise, and token holders may earn a profit. This incentives Props holders to develop the network.
Additionally, tokens are transferable between different applications and wallets, though they cannot be exchanged for fiat currencies. At this point, there are four applications that have integrated with the token network.
TechCrunch reported that Props worked with the SEC for two years before receiving approval to ensure they weren’t misleading investors or inappropriately raising capital.
In fact, the company pre-sold $22 million worth of tokens to investors like Union Square Ventures, Comcast, and Venrock, among others. At the time, the company wrote, “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, cryptoassets or hold as cash,” in its SEC Edgar filing.
The SEC also recently granted the first Reg A+ qualification to a token sale for Blockstack‘s $28 million offering on CoinList. That token sale officially launched on Thursday despite some initial technical problems.
Props screenshots courtesy of YouNow