Live streaming startup YouNow, which is behind the decentralized digital video ecosystem Props launched in 2017 and is backed by Union Square Ventures, filed a public offering with the United States Securities and Exchange Commission (SEC) for its Props token. This move comes after an increased regulatory control over Initial Token Offerings, resulting in several court cases against ParagonCoin, Airfox, Gladius and Kik.
YouNow announced its upcoming sale in a press release shared with Cointelegraph on June 19.
The YouNow app is used by nearly 47 million people worldwide. The company submitted its application as a Regulation A+ filing with the SEC. If approved, the initiative could see accredited and retail users alike globally earning Props tokens in full compliance with U.S. federal securities laws, the press release states.
According to the press release, Props will be an open-source project designed to enable multiple app users to transform any social capital they accumulate into a financial stake in the network.
Because YouNow has chosen a public offering for its sale model, the application pertains not to a token sale but seeks a regulatory backing for Props token allocation to YouNow app users, based on the level they have attained within the app.
There will be a number of activities that can generate the capital needed to accumulate tokens for users of the app. Namely, creating original app content, interacting with other users and rating their content, the press release notes. Once received, tokens offer users in-app benefits.
The Props team has developed a suite of open-source tools that can enable onboarding multiple apps to the Props network in a bid to drive a user-focused tokenized digital economy.
To date, YouNow has to date generated over $70 million in digital currency sales and made its earnings public through the in-app economy of its platform.
In an official statement, David Pakman — a partner at venture capital firm Venrock, which is backing the project alongside Union Square Ventures, Comcast Ventures, and others — said:
“Pending final approval by the SEC, there is the opportunity for apps to integrate and ‘mine’ a legally compliant digital token and obtain a stake, for both the apps and their users, in the network they contribute to. This […] new model is ushering in a new era of transparent and more equitable distribution of value, and sharing that value with end-users.”