The blockchain-based company Props PBC has released a token that has been approved by the US Securities and Exchange Commission under the A + clause.
According to the press release, this is “the first consumer token approved by the SEC” under the “A +” provision. The “A +” provision was introduced in 2012 and is an alternative to an IPO focused on startups that need early funding. In accordance with the rules, any member of the public can participate in a round of financing.
The approved token is released on the Ethereum blockchain. According to the announcement, the Props platform is able to allocate blockchain infrastructure for applications, providing an automatic configuration solution for applications integrating Props tokens.
It is reported that Props is a bonus token that can be used in applications to encourage users, for example, in the framework of YouNow and XSplit streaming platforms. In addition, the Props token should provide a new financial tool for content creators to provide them with a steady stream of income. Props investor and Youtube blogger Casey Neistat said:
“Video content created by independent authors has become very popular, but the creators still lack a lot of ways to turn it into a significant source of permanent income.”
Earlier this week, the US Securities and Exchange Commission approved
$ 28 million public offering of Blockstack startup tokens. Permission was also granted in accordance with regulation “A +” of the SEC regulations. And although other companies have previously used the capabilities of the “A +” clause, this is the first precedent when investors receive tokens, not company shares.