YouNow Live Video Streaming Startup Launches Native Cryptocurrency
YouNow, a U.S.-based live video streaming company with more than 47 million registered users, has completed a Regulation A+ filing with the United States Securities and Exchange Commission (SEC) to enable it to distribute its newly launched Props token to users of the platform, according to a Reuters report on June 19, 2019.
YouNow Rewards Users with Cryptos
Per sources close to the matter, YouNow, an American video streaming service in existence since June 2013, is set to start rewarding its loyal users with a native cryptocurrency called Props token.
Unlike most firms that issue their tokens through initial coin offerings (ICOs) or security token offerings (STOs) in a bid to raise funds for their business, YouNow has made it clear that it’s not interested in generating additional revenue through the issuance of its token.
The company says the primary objective of launching Props is to incentivize and reward its faithful users, app developers, financial contributors, and content creators. To achieve this aim without incurring the wrath of the SEC, YouNow has reportedly completed its Regulation A+ filing with the financial watchdog.
A Reg A+ filing enables companies in the U.S. and Canada to issue securities to the general public just like an initial public offering (IPO) and raise $50 million within 12 months without going through the Exchange Act.
The Reg A+ exemptions come in two tiers. Tier one allows the firm to raise a maximum of $20 million while tier two enables the startup to issue securities up to $50 million.
Specifically, YouNow is looking to distribute a total of 178 million Props tokens, and the utility token will be shelled out continuously.
The startup says it plans to develop consumer-facing digital media application called Prop Apps. Like regular apps, Props app will be available for download to everyone, but users will get rewarded with the Props token.
Commenting on the development, Adi Sideman, YouNow founder and CEO, reiterated that:
“The users that help grow the YouNow network can now be rewarded in a transparent way through cryptocurrency. We’re effectively bringing utility tokens to non-accredited investors and consumers in an SEC-compliant way.”
With the growing ubiquity of cryptocurrency and the underlying blockchain technology, more and more firms are now scampering to join the movement.
On June 18, 2019, BTCManager informed that Facebook had released the whitepaper for Project Libra, a cryptocurrency it says will revolutionize the “internet of money.”