Props Launches the First SEC-Qualified Crypto Token for Consumers

Props Project
Props Project
Published in
6 min readJul 11, 2019

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Props Tokens are now available for 47 million registered YouNow users. Props reward contributing apps, users and validators with a financial stake in the network they’re helping to grow.

Props Now Available for Millions of Platform Users

We are proud to announce that the Props offering statement on Form 1-A has been qualified by the US Securities and Exchange Commission (SEC), enabling us to grant Props to both accredited and unaccredited Props Network users in the United States and around the world.¹

This is a landmark moment for our community. 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 Network² and a direct financial stake in the network they help grow.³ This model, enabled by SEC qualification, empowers us to build a future where value accrues with the user.

“Online video content made by independent creators has become massively popular, but still lacks diverse ways for creators to turn their content to a meaningful source of ongoing income,” said top YouTuber and Props investor Casey Neistat. “I’ve been working with the Props team as we share a similar vision, to help creators find ways to earn more value off of their passion for making videos.”

YouNow, the first app on the Props network, has already made available a significant portion of its own Props Tokens to millions of YouNow users. Tokens have been allocated to users based on their current status (“level”) on YouNow, which signifies the contribution they have made to the network to date.

Props: A new way for apps to reward users with a financial stake in the network

Moving forward, YouNow users may earn tokens by contributing content, supporting content creators, and actively engaging with the app. Those YouNow users who hold Props benefit from valuable in-app utility — such as discounts on in-app virtual gifts and a free daily stipend of YouNow’s in-app currency — and have a financial stake in the entire Props network.

Beyond the YouNow use case, the Props team has built a set of easily-integrated⁴ open-source tools⁵ that enable additional apps to join the Props Network, setting the foundation for a digital economy that rewards users for the value they create.

Three additional Props apps are expected to come online this year. PeerStream, a public company that operates video-powered communities, is already in the process of integrating Props into its flagship consumer apps Paltalk and Camfrog. SplitmediaLabs, a gaming-focused community with 13 million users, plans to integrate Props into XSplit, its most popular product.

Henrik Levring, CEO of SplitmediaLabs said “By integrating Props into our apps, we become even more aligned with our loyal users. Our users can already start earning Props when they stream to YouNow from XSplit.”

This is a fundamental shift in the way content creation platforms partner with and more fairly reward their communities. We are pioneering the industry’s evolution, by better aligning the interests of technologists, investors, users, and developers.

Any content creator, developer, or validator interested in joining the Props Network can visit our website at www.propsproject.com to learn more about Props, and apply for a grant. You can also see TechCrunch’s coverage of Props qualification here.

We thank our devoted community for its ongoing support, and look forward to a bright future in which everyone who contributes to a network’s success can be rewarded for the value they create.

Notes:

  • Props Tokens cannot be purchased as part of this offering. They can only be earned by apps, users, and validators that will contribute to the Props Network.
  • We will be working towards a regulated listing on an alternative trading system (ATS) that lists tokens for trading, but we do not currently have a detailed update on this front.
  • We are not currently aware of any national securities exchange or ATS that lists tokens for trading.

¹ Users of an app that integrates Props may be able to receive Props upon their review and acceptance of the terms and conditions for use of the app and the completion of certain other administrative steps. Non-US users of an app that integrates Props will be required to make their own determination as to whether such usage or any transfer of Props is in compliance with their relevant state and foreign securities laws.
² Props will initially be available only on the YouNow app. Other apps are in the process of integrating Props at the moment, and we anticipate that they will launch Props in the coming months.
³ A “financial stake in the network” means the ability to participate in an increase in the value of Props if the use of our platform increases and results in an increase in the demand for, and therefore the value of, Props. Holders of Props will not receive an interest in the profits or losses of YouNow, Props PBC, any other YouNow affiliate, or Peerstream, any rights to distributions from YouNow, Props PBC, any other YouNow affiliate or Peerstream, or any legal or contractual right to exercise control over the operations or continued development of YouNow, Props PBC or any YouNow affiliate or any legal or contractual right to exercise control over the operations or continued development of Peerstream.
⁴ Some modifications to an app may be necessary in order to ensure Props are fully functional.
⁵ YouNow has created open-source software to enable participating apps to use the Props blockchain.

Disclaimer

The Securities and Exchange Commission (SEC) has qualified the offering statement that we have filed with the SEC. The information in that offering statement is more complete than the information we are providing now, and could differ in important ways. You must read the documents filed with the SEC before investing. The offering is being made only by means of its offering statement. This document shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. An indication of interest involves no obligation or commitment of any kind. Any person interested in investing in any offering of Props Tokens should review our disclosures and the publicly filed offering statement and the final offering circular that is part of that offering statement at this website. YouNow is not registered, licensed or supervised as a broker dealer or investment adviser by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) or any other financial regulatory authority or licensed to provide any financial advice or services.

Forward-looking statements

This communication contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. In some cases, you can identify forward-looking statements by the following words: “will,” “expect,” “would,” “intend,” “believe,” or other comparable terminology. Forward-looking statements in this document include, but are not limited to, statements about our plans for developing the platform and future utility for the Props Token, our Reg A+ offering and launch of our network, and collaborations and partnerships. These statements involve risks, uncertainties, assumptions and other factors that may cause actual results or performance to be materially different. More information on the factors, risks and uncertainties that could cause or contribute to such differences is included in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion & Analysis” sections of our offering statement on Form 1-A. We cannot assure you that the forward-looking statements will prove to be accurate. These forward-looking statements speak only as of the date hereof. We disclaim any obligation to update these forward-looking statements.

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Using blockchain to create a more equitable media ecosystem, where creators and valuable contributors have a personal stake in the network they build with us.