YouNow is a different startup in the blockchain market that creates a decentralised digital video ecosystem. What brought my attention was how they plan to integrate their Props token in their app. They have already made a Regulation A+ SEC filing. I will explain exactly how these guys made something different.
YouNow has already 47 million users. Their open-source project Props aims to transform contributions to the digital community into tokens that can be used for in-app benefits, to start with.
They are backed by investors such as Union Square Ventures, Comcast ventures and Venrock, among others. This shows that there is an interest for this direction, and it is very clear why. The token will be firstly integrated in YouNow. Despite of this, it will allow any app to use Props in order to reward its users for creating social interaction. Other than these big investors, they have ran a Republic campaign with a $50.000 target. What is amazing is that they have managed to raise a little over $1 million from 794 investors. Unlike many, they did not do a traditional ICO, STO or IEO. They chose to do a debt offering, with principal plus 20% interest payable by the Props tokens in lieu of cash.
In an official statement, one of the partners of Venrock, David Pakman, has 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.
The official press release quoted by Cointelegraph notes that the initiative could see accredited and retail users, like YouNow, globally earning the tokens in full compliance with federal securities laws. Clearly, what we are seeing is not a token sale. This is a public offering and allocation of the Props token to YouNow users. They avoided the traditional way of doing things once again, clearly making this company a different startup. The team that is working on the open-source project created a suite of tools that can enable integration in other apps, in an attempt to drive a user-focused tokenized digital economy.
This is what the market needs right now: to be user-focused. Since the user is the person who uses a certain token, cryptocurrencies should first solve a small problem that occurs to many people. This is how startups should identify and create a market.
This different startup, along the launch of Facebook’s cryptocurrency Libra’s white paper, has created big effects on the market. Bitcoin is close to reaching the $10.000 milestone once again, at the time of this writing. I think it is clear now that the crypto market has changed its direction. FOMO, alongside initiatives like this, will drive up the price and I believe this will create a snowball effect that will be beneficial to all investors.
I don’t consider this time too late to enter the market, or buy more, because we will be seeing this trend for some time now. But, this does not mean you should delay investing more money into cryptocurrency, because everything is moving fast.
Different startup YouNow is helping the market moving in the right direction. Creating the unique token Props and the SEC approval of this filing might create a precedent. Keeping eyes on the market now is essential and taking certain decisions might help you increase your earnings from investments.
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