SEC approves 1st consumer RegA+ token Props for cross-app rewards
Curated by: Startups
After cracking down on ICOs, the SEC just okayed the first two RegA+ tokens that offer an alternative way for anyone to gain a financial stake in a company, even unaccredited investors. Blockstack got approved for a $28 million digital token sale to raise money, while influencer live streaming app YouNow’s spin-off Props received a formal green light for a consumer utility ‘Howey’ token users can earn to get loyalty perks in multiple apps.
Props has already raised $21 million by pre-selling tokens to Union Square Ventures, Comcast, Venrock, Andreessen Horowitz’s Chris Dixon, and YouTuber Casey Neistat, so it isn’t raising any money with the RegA+ by selling its tokens like Blockstack. Instead, users earn or ‘mine’ Props by engaging with apps like YouNow, which will award the tokens for creating broadcasts, watching videos, and tipping creators. Having more Props entitles YouNow’s 47 million registered users bonus features, VIP status, and more purchasing power with the app’s proprietary credits called Bars which users have bought $70 million-worth of to date.
But unlike most virtual currencies that can only be used in a single app and don’t technically belong to consumers, the open-sourced Props blockchain system can be integrated into