U.S. SEC Approves Again! YouNow to Issue Props Tokens

The startup live streaming platform YouNow has been approved by the U.S. Securities and Exchange Commission (SEC) on 7/11 to issue its own currency through the Reg A+ regulation.

YouNow is a U.S.-based startup live streaming platform that allows users to upload their videos or live stream and interact with others, aiming to provide a new platform for content creators.

In a press release issued on 7/11, the company announced that they have obtained Reg A+ qualification approved by the SEC, and they will issue "Props" tokens through the Ethereum ERC-20 standard.

Reg A+ qualification is a form of IPO for early-stage startups that need fundraising, serving as an alternative to public fundraising with two tiers and a hard cap on fundraising. In simple terms, it is an SEC-regulated ICO.

According to a report by TechCrunch, the company has presold tokens worth $22 million to investors such as Union Square Ventures, Comcast, and Venrock.

Unlike YouTube, which generates substantial ad revenue and allows video creators to earn through YouTube's algorithm, YouNow does not have ads. It aims to reward both creators and users with "Props tokens."

Users can use tokens to tip their favorite videos and purchase premium account features. Props can also be withdrawn to their wallet and used in future apps in collaboration with YouNow.

There are currently four partnered apps, including the game streaming platform xSplit with 17 million users. This is a significant advantage of Props to look forward to, as it differs from other virtual currencies that are limited to a single app and not consumer-owned. It belongs to an open-source blockchain system that allows for circulation.

Further Reading

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