Blockchain Online video Startup YouNow Data files With SEC to Give Away (Not Provide) Tokens

YouNow, a video clip system that aims to reward energetic users with its personal cryptocurrency, is having a belt-and-suspenders strategy to compliance.

The New York-based mostly startup has filed a Reg-A+ giving circular for its Props token with the Securities and Trade Commission (SEC) – even though it isn’t promoting them to investors, accredited or usually. If authorized by the regulator, the qualification would obvious YouNow to distribute Props to material creators, network transaction validators and other folks without registering the tokens as securities.

The crucial difference amongst this token and other initiatives? “No resources will be elevated by the general public giving, made to permit compliant ‘mining’ of Props in [the] US,” says the company.

Instead, YouNow will disperse hundreds of thousands of Props, an ERC-20 token that operates on the ethereum blockchain, to users of its application.

Formerly, YouNow elevated $25 million by the sale of Props, $20 million of that by means of a simple settlement for potential tokens (SAFT), a authorized construction devised at the top of the 2017 original coin giving (ICO) growth.

But while the 178 million Props allocated for the existing “offering” have a nominal selling price (13.6 cents apiece, or $24 million full), the only consideration YouNow asks is participation in its system.

From the launch:

The Props Tokens simply cannot be obtained as section of this giving, but can only be attained by applications, users and validators that will contribute to the Props Community. YouNow, the initially application on the network, intends to distribute a considerable portion of its personal tokens to hundreds of thousands of its users. Tokens are to be allocated to users based mostly on their existing standing (“level”) on YouNow, which signifies the contribution they have made to the network to date. On qualification, YouNow users could receive Props Tokens by, for example, creating material on the application. Buyers maintain Props to get in-application added benefits and true upside opportunity.

Props is backed by Union Square Ventures, Comcast Ventures, and Venrock, amid other folks and is setting up on supplying away tokens as grants to programmers on the system and for preferred users.

“Over the past two several years, the team concentrated on launching Props in a fashion compliant with US regulators and now, pending final acceptance by the SEC, there is the possibility for applications to integrate and ‘mine’ a lawfully compliant digital token and get a stake, for both equally the applications and their users, in the network they contribute to,” reported Venrock’s David Pakman. “This visionary new design is ushering in a new period of clear and extra equitable distribution of value, and sharing that value with conclude-users.”

Picture by Tyler Nix on Unsplash