SEC Approves Another Reg A+ Token Offering with the Props Project
FILE- This Dec. 17, 2008 file photo shows the exterior of the Securities and Exchange Commission (SEC) headquarters in Washington. An American judge for the U.S. Securities & Exchange Commission has ruled the China arms of global accounting firms should be barred from providing audits for U.S.-traded companies in a dispute that might force major corporate names such as oil giant PetroChina and search engine Baidu to withdraw from American stock exchanges. (AP Photo, File)

SEC Approves Another Reg A+ Token Offering with the Props Project

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

So far, the security token industry has at least two SEC-approved ATSs— tZERO and OpenFinance Network.

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.

Since SEC Chairman Jay Clayton has publicly suggested that digital assets need to abide by the SEC’s existing regulations, security tokens incorporate the commission’s rules.

As a result, ICOs raise 58 times less than they did just over one year ago, while STOs have raised nearly $1 billion to date, with data suggesting enormous potential.

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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