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SEC approves YouNow’s Props token, the second crypto project under its Regulation A+ Policy

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SEC approves YouNow’s Props token, the second crypto project under its Regulation A+ Policy
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The U.S. Securities and Exchange Commission (SEC) has not just approved one crypto project for raising funds from accredited investors, but two of them have got the nod. After Blockstack, the other crypto project to be approved under Regulation A+ is YouNow’s Ethereum based ‘Props’ token.

Props is incentivizing tokens for content hosting and sharing platforms. The token can be integrated into streaming services such as YouNow and Xsplit to reward content creators. YouNow which is a decentralized streaming service and also behind the creation of Props token announced the integration of the token on their streaming platform on July 11. Content creators on the platform as the users who engage on the platform will be rewarded in Props for in-app activities.

The YouNow platform plans to distribute 187 million tokens among users and content creators to begin with.  Apart from that, the platform would also push the users to garner as many Props token as possible as it would enhance their purchasing power for an in-app currency called bars. The plan is to boost user profile as per their engagement on the platform and assign them different VIP badges. The more Props a user collects, the better their chances of availing exclusive discounts and products.

Props long route to approval

Props has been coordinating and working with SEC for over two years before finally getting approved under RegA+. SEC wanted to ensure that the streaming service provider is what it says, and won’t dupe their investors. Just like Blockstack, even YouNow had sold $22 million worth in tokens before it started working under the SEC to get legally recognized by the regulators. During its early token sale, the firm has mentioned that they intend to “invest the proceeds in interest-bearing, investment-grade instruments, certificates of deposit, direct or guaranteed obligations of the U.S. government, crypto assets or hold as cash,”

The Props token was valued at $0.1369 at the time of the launch, however, this price may rise up as the token finds its ground in the market. It will be transferrable between different applications (as of now 4 applications have integrated Props) and wallet supported by the YouNow platform, but cannot be exchanged against fiat.

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Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.