The highest regulatory authority of the US has approved the distribution of cryptocurrency and props of the YouNow platform. The platform is known for social live streaming if videos in the US. The platform can now use A+ crowdfunding exemptions as per the regulation of SEC. The report surfaced on 11th July Thursday.
The token of the platform Prop is erected on the blockchain of Ethereum. The platform does a live stream of game shows and offers an opportunity to win prizes in cryptocurrency, Ethereum. The Prop was introduced on 11th July, in video streaming convention VidCon at Anaheim. Any app that connects the blockchain network of Prop can use the token for reward programs and discounts.
As per SEC filling, YouNow will start the journey by distributing 187 million tokens to the users and creators. The price of one token is decided to be $0.1369 at the launch. However, it is expected that the cost of the token will increase with the growth of the platform.
In its presale, the company has already sold 22 million tokens to some of the well-known investors like Comcast, Venrock, and Union Square Ventures.
They are the second blockchain company of US to receive A+ exemption from the US SEC. This will let the firm to raise $50 million through the token sale. The watchdogs see this token as a helpful token that can offer a stake in various apps that connects to the Prop network.
The transaction of the aforementioned token can take place between wallets and apps but can’t be swapped for fiat currencies at present. The token network has currently integrated with four applications. The token will also provide a vehicle for the steady income for the content creators.
The Prop platform can abstract the blockchain infrastructure of apps, thus providing plug and play option for the apps connecting the Prop token. If this initiative turns out to be successful, then other platforms can also use the same concept to give incentives to users who support the platform.
SEC granted the first A+ exemption to Blockstack for their stack token. It is a blockchain startup working to develop decentralized apps. SEC has permitted them for the Stack token sale of $28 million through private placement.