2nd Reg A+ Token Offering Qualified by SEC: Props “Loyalty Program on Steroids”

Props Project (or YouNow Inc.) is now the second Reg A+ token issuer to be qualified by the Securities and Exchange Commission (SEC). Yesterday it was announced that Blockstack became the first token offering to be blessed by the SEC. Today we have a second. The offering circular is available here.

According to the filing, the token offering may kick off within the next 2 days.

Props said approval was a landmark event for their 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. This model, enabled by SEC qualification, empowers us to build a future where value accrues with the user.”

YouNow is the first app on the Props network.

YouNow users may earn tokens by contributing content, engaging and supporting creators. Props said their service provides a “fundamental shift in the way content creation platforms partner with and more fairly reward their communities.”

As part of the offering, Props Tokens may not be purchased by the offering. Users may only earn the tokens on the network.

Props has allocated 70 million Props Tokens for grants towards app development to speed up the network’s growth and advancement.

Importantly, Props said it will be working to list the token on a trading platform (ATS) but there are no detailed plans as of yet.

Under the Reg A+ exemption, issuers may offer digital assets to both accredited and non-accredited investors alike. Importantly, once an issuer has completed an offering they may choose to immediately trade the asset. The ability to trade immediately has made Reg A+ a strategic path for token issuers but until this week not a single digital asset offering had been qualified. Now we have two.

Props Token Sale Now Open on CoinList, Republic Investors See ICO Sell Out Immediately

Props, a decentralized video network operated by YouNow, Inc., has opened its public token sale on CoinList. The Initial Coin Offering (ICO) expects the offer to close on December 22nd making it the third ICO to fund on the AngelList founded platform. YouNow’s community that is numbered in the millions of users are considered a perfect fit for the  blockchain-powered platform for digital media transactions. The Props ICO is also the first side-by-side Reg D / Reg CF token offering ever. Republic, founded by AngelList veterans, has created a new type of security to facilitate the Props ICO veering away from the popular SAFT structure..

The offer on Republic hit the max $1.07 million amount under the Reg CF securities exemption in under 24 hours 4 hours thus leaving many potential investors disappointed by the scarcity of tokens. CoinList, on the other hand, reports that investment allocations requested during the registration period were over the sale’s capped goal but that does not necessarily mean you may be boxed out if you are interested in investing. Token allocations are filled on a first-come, first-served basis during the sale.

Republic has created a bespoke security structure for ICOs. The company hopes it will become a standard offering similar to the widely utilized SAFE agreements that many crowdfunding platforms incorporate now.

The Token DPA, or Debt Payable by Assets, is described as an equity crowdfunding-specific security created by Republic to provide investors downside protection when they purchase the right to obtain blockchain tokens in the future. Republic explains that SAFTs are largely only available to Accredited Investors. Additionally, with a typical SAFT, investors must wait for a public token sale by an issuing company to receive tokens, otherwise their right to a return on their investment can be left unfulfilled. Republic states that a Token DPA provides a way for investors to either receive part, or all of, their principal back, earn a cash return or receive the desired token when certain events occur. Interested investors should review closely the structure and we have embedded the DPA document below for convenience. In brief, the Token DPA is a an interest bearing loan that can be converted to tokens.

The PROPS token expects to provide utility for network participants, driving value back to those who contribute to the ecosystem’s growth. It is an interesting concept that has captured the notice of many prominent investors including; Union Square Ventures, Comcast Ventures, BlockTower Capital, Chris Dixon, Oren Zeev, Notation Capital, Phil DeFranco, Casey Neistat and others. The offer on CoinList will most likely be a big hit. Clearly, the offer on Republic saw demand quickly outstrip supply representing a validation (of sorts) of the Republic offer. Expect more ICOs on both platforms in the very near future.


Republic DPARepublic DPA in Word

Token DPA

[pdf-embedder url=”https://staging-crowdfundinsider.kinsta.cloud/wp-content/uploads/2017/12/Republic-Token-DPA-2.pdf” title=”Republic Token DPA 2″]

CoinList + Republic Crypto : PROPS ICO Accepting Registrations

PROPS initial coin offering  (ICO) is now accepting registrations on CoinList for accredited investors that are interested in participating in the token sale. The CoinList sale begins on December 11th. Simultaneously, a separate pre-sale of Props tokens will begin on “Republic Crypto” on December 11th as well. The offer on Republic is using the Reg CF exemption and is thus open non accredited investors. Reg CF is capped by law at only $1.07 million and thus the bulk of the ICO will go to accredited investors. This will be the first ever side-by-side ICO for both accredited and non accredited investors using JOBS Act exemptions. The CoinList sale will close on December 18th with token distribution taking place in Q1 of 2018. There is a hard cap of $25 million on the offer.

PROPS is a decentralized ecosystem of video applications that benefits from YouNow’s community of millions currently transacting in a two-sided digital economy in a blockchain-powered model for digital media. According to the offer page, PROPS will have access to 40 million registered users that currently undertake 62,000 micro-transactions a day. This type of broad-based network may benefit from a tokenized environment.

The creators expect rapid uptake by the creation of the PROPS tokens;

“They [users] will spur demand for PROPS day one, making it one of the world’s most widely used cryptocurrencies early on.”

Early investors in PROPS include some pretty big names like; Union Square Ventures, Comcast Ventures, BlockTower Capital, Chris Dixon, Oren Zeev and Notation Capital.

Individuals investing with USD will need to pre-fund their CoinList accounts. If you will be investing with ETH or BTC there is no need to pre-fund.

Allocations will be distributed first-come, first-served. Registration deadline is December 11th.