YouNow is a video platform that wants to reward active users with its own cryptocurrency, and the platform is taking a very cautious approach to compliance.
The New York-based startup has filed a Reg-A+ waiver notice with its Securities and Exchange Commission (SEC) about its Props token—although its token will not be sold to investors (whether qualified or not) ). With the approval of this regulator, YouNow can issue Props to content creators, online transaction verifiers and others without registering tokens as securities.
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What is the main difference between this token and other projects? The company said: "There will be no funds raised during the public offering process. The purpose of this process is to make the compliant Props 'mining' possible in the US."
YouNow will distribute millions of Props to its app in its app, an ERC-20 token running on the Ethereum blockchain.
Previously, YouNow raised $25 million through the sale of Props, of which $20 million was raised through a Future Token Simple Agreement (SAFT). SAFT is a legal structure designed when the ICO heat reached its peak in 2017.
However, although there is a nominal price (13.6 cents, totaling $24 million) for the currently allocated 178 million Props, the only thing YouNow has to consider is platform engagement.
The company said in the announcement:
“Props tokens cannot be obtained through the channel of purchase, but can only be obtained by contributing to the Props network, such as participating in the app, becoming a user and a certifier. YouNow is the first app on the network and plans to be mostly Tokens are distributed to millions of users. Tokens will be assigned to users based on their status (level) on YouNow to prove their contribution to the network. Once eligible, YouNow users may create content on the app. Props are obtained in the same way. Users hold Props in order to enjoy the advantages and real upside potential in the process of using the app."
Props is supported by venture capital firms such as Union Square Ventures, Comcast Ventures and Venrock, and plans to issue tokens to programmers and big V users of the platform.
Venrock's David Pakman said:
“In the past two years, the (YouNow) team has focused on launching Props in a compliance manner, and now they are waiting for the final decision of the SEC. Here they will implement app integration and compliant token mining, apps and their users. Both can benefit from the networks they contribute. This new visionary model is creating a new era of transparent and fairer value distribution and sharing this value with end users."