• Fri, 19 Jul 2019, 04:16 PM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Props launches first SEC-qualified consumer-facing crypto token

Fri, 12 Jul 2019, 07:33 am UTC

The U.S. Securities and Exchange Commission (SEC) has granted ethereum-based token Props a Regulation A+ qualification, making it the first consumer-facing SEC-qualified crypto token.

As per its press release, Props can now start rewarding tokens to contributing apps, users, and validators, including the 47 million registered users of YouNow, the first app on the Props Network.

The video-streaming platform said it will start distributing a total of 187 million Props tokens to reward content creators for in-app activities that “drive community engagement” and compensate users for engaging with the platform, according to its SEC filing.

Online video content made by independent creators has become massively popular, but still lacks diverse ways for creators to turn their content to a meaningful source of ongoing income,” YouTuber and Props Investor Casey Neistat said.

YouNow will also entice users to earn Props by offering VIP status and increasing their purchasing power in an in-app currency called "Bars." Props holders will enjoy exclusive perks and discounts.

Beyond the YouNow use case, Props team plans to create open-source tools that will allow additional apps to joins the Props network to reward users. It is expecting to welcome three more apps to come online this year, including PeerStream’s consumer apps Paltalk and Camfrog, and SplitmediaLabs’s XSplit.

Our offering of Props is the first consumer-facing offering of ‘Howey tokens’ to be qualified by the SEC. It makes it the first offering of consumer-oriented utility tokens that the SEC deems compliant, outside of Bitcoin and Ether,” Adi Sideman, Props CEO, told TechCrunch.

We used Regulation A+ for this qualification, so that Props may be earned by, and provide functionality to, non-accredited investors, users, apps and validators in compliance with U.S. regulations,” he added.

Regulation A+ is an alternative to traditional initial public offering (IPO) designed to cater to startups that need early funding. According to the filing, each token will cost $0.1369 at launch. However, as the platform expands and token demand increases, token holders may also enjoy a profit.

Props tokens may also be transferred to various applications and wallets, but they cannot be swapped for fiat currencies. The company is also working to have Props listed on Alternative Trading System that work like cryptocurrency exchanges.

According to TechCrunch, Props has worked closely with the SEC for 2 years before getting approval. The SEC wanted to make sure that the company will not mislead investors and raise capital illegally.

The report follows after the SEC also okayed blockchain startup Blockstack to conduct a $28 million digital token offering under Regulation A+. However, unlike Props that lets users earn or “mine” tokens by engaging with apps, Blockstack’s investors will receive tokens.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $10,380.20 (-0.73%)
  • Ethereum (ETH) $218.20 (-2.69%)
  • XRP (XRP) $0.315900 (-2.21%)
  • Litecoin (LTC) $96.34 (-3.52%)
  • Bitcoin Cash (BCH) $299.72 (-4.56%)
  • Bitcoin (BTC) $10,380.20 (-0.73%)
Jul 19, 2019 (Friday)
11:17
Crypto Technicals: XRP/USD grinds lower along 200H SMA, break below 5-DMA to see further weakness
11:12
Binance Jersey announces listing of GBP-backed stablecoin ‘BGBP’
10:32
Rape and sexual harassment case against bitcoin developer blows up
10:15
New Jersey accuses blockchain firm Pocketinns of selling $410K unregistered securities
09:59
Crypto Technicals: LTC/USD struggles at 110-EMA, bias bearish
09:58
Blockchain firm Algorand joins International Swaps and Derivatives Association
09:22
Neo, Ontology partner to develop blockchain interoperability protocol
07:35
Consumer advocates call on Libra partners to withdraw collectively from Facebook's crypto project
07:31
Apple's Steve Wozniak invests in blockchain-based energy efficiency firm 'Efforce' in Malta
07:28
Cryptocurrency exchange ErisX joins U.S. Chamber of Digital Commerce
07:26
LibertyX exceeds 1,000 bitcoin ATMs in the U.S. via new partnership
06:59
Blockchain interest dropping, DLT in trouble?
06:37
Waves founder launches Waves Enterprise to develop corporate blockchain solutions
06:03
IRS goes after cryptocurrency users misreporting transactions
05:05
Facebook's Libra, other cryptocurrencies pose risk of global economic destabilization: G7
04:42
Anchorage receives charter to open crypto custody shop in South Dakota
04:27
Bank of Thailand's DLT-focused Project Inthanon advances to Phase III
Jul 18, 2019 (Thursday)
11:52
MOBI launches first vehicle identity standard on blockchain
11:49
FATF approves Japan’s plan to establish global network for crypto payments: Report
11:13
Crypto Technicals: ETH/EUR downside pauses shy of 200-DMA, bullish divergence on intrday charts keeps scope for upside
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft