The US top regulator has approved YouNow, a video platform that offers social live streaming, to distribute its own cryptocurrency, or Props, through leveraging the SEC’s Regulation A+ crowdfunding exemption.
The company also operates a live streaming game show, dubbed WTF, which allows viewers to win cash prizes in the form of Ethereum.
US live video streaming company YouNow was the second blockchain related firm to file for SEC Regulation A+ exemption, which allows the firm to raise up to $50 million in its token sale.
Blockstack, which is building a platform for decentralized apps, was the first ever startup to file an application with the SEC to sell its tokens, called Stacks, under the Regulation A+ exemption. Blockstack was also granted the SEC’s green light today and intends to sell up to $28 million in Stacks Tokens in a private placement.
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YouNow, however, said in its filing that it would not raise funds or sell the tokens at the public offering. Instead of being sold, the company will reward users, content creators and validators with its Ethereum-based ERC20 token for participating in the ecosystem, i.e it acts as a financial stake in the network they contribute to.
Under the terms of the offering, a total of 178 million tokens will be distributed. Reg A+ allows the company to offer its token to the general public and not just accredited investors.
YouNow, which reports having attracted 47 million registered users since its founding in 2011, already raised around $20 million in an unregulated token sale in late 2017. This time, however, the firm is working with securities lawyers to create a legal framework that can enable its offering to comply with SEC regulations.
Like other social networks, YouNow is aiming to create a crypto-centered media platform and a decentralized ecosystem whereby all participants hold a stake in its growth and thus earn money for their contributions to the network.
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