The Securities and Exchanges Commission (SEC) has approved Props as the first Regulation A+ (RegA+) tokens. According to a press release by the company, the regulator deems its token as compliant with the current regulations.
RegA+ tokens offer an alternative method for anyone to gain a financial stake in a company, extending the privilege to unaccredited investors.
Props is a consumer-facing utility token that integrates with non-blockchain applications, enabling their users to earn tokens for engaging with the platforms. Props, built on the Ethereum blockchain, is open source and allows for plug-and-play functionality for platform owners, who can use it to develop their own token-based loyalty programs.
Props was developed by YouNow, an American live-streaming platform with over 47 million users. YouNow has previously announced that it will begin rewarding content creators on its platform with Props tokens for engaging in activities that drive community engagement. These include creating live broadcasts, watching other people’s broadcasts and tipping creators. According to an SEC filing, YouNow will distribute 187 million tokens to its users. The platform currently has in-app proprietary credits known as Bars which it claims to have sold over $70 million worth.
Props also revealed that XSplit, a game streaming platform, will integrate its tokens. This will enable the platform to “become even more aligned with its loyal users” who stand at over 13 million.
While Props isn’t the first token offered on streaming platforms, it claims to be significantly different from its peers. YouNow said the tokens aren’t limited to one platform since the user who earns the tokens on YouNow can use them to purchase items on XSplit and any of the other platforms that may join the network.