On July 11th 2019, the Props Project announced receipt of Securities and Exchange Commission (SEC) approval to launch a token offering through the Reg A+ securities exemption.
Props Project to Conduct Second-Ever SEC Qualified Reg A+ Token Offering
Earlier this week, Blockstack announced the first-ever SEC-qualified Reg A+ token offering.
Already, the Props Project has announced the second. The token offering could start as early as July 13th.
According to Props,
“Props Tokens can now reward contributing apps, users and validators with a financial stake in the network they’re helping to grow, and are now available for 47 million registered YouNow users. YouNow is the first app on the Props Network. App users who contribute value to the Props economy algorithmically earn Props Tokens that grant both in-app utility in the Props Network and a direct financial stake in the network they help grow. This model, enabled by SEC qualification, empowers us to build a future where value accrues with the user.”
It’s important to clarify that Props tokens cannot be purchased through the offering. The tokens can only be earned through the network.
Under the Reg A+ securities exemption, the offering will be available to U.S.-based investors both accredited and unaccredited.
In the future, Props hopes to get their token listed on an Alternative Trading System (ATS).
The Growing Implementation of Security Tokens Explained
Given the continuous downfall of the Initial Coin Offering (ICO), many companies are turning the Security Token Offering (STO) as a compliant means to raise capital, while leveraging the benefits of blockchain technology.
What do you think about Props’ Reg A+ token offering? We want to know what you think in the comments section below.
Image courtesy of the SEC.
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