Coinbase Custody to List YouNow’s Props Token
Coinbase Custody announced the addition of the recently Reg A+ certified Props token to its custodial listings.
The institutionally-weighted, and independently-funded custodial wing of Coinbase will provide cold storage as well as a wallet for holders of Props. The tokens were designed by YouNow developers as a way to reward users of the platform and its content creators.
Furthermore, the Coinbase wallet will act as the default wallet offered by YouNow to users.
“This wallet has a tighter integration with the YouNow app, which makes for a smooth UX when using Props,” according to a company statement. YouNow has a 47 million user base.
Currently available on YouNow, with three additional applications announced, Props’ unique Reg A+ investment structure, and regulatory status, acts as an incentive for users to build upon and disseminate the platforms on which the tokens operate by giving holders a vested interest in the platforms’ success.
Indeed, Yonatan Sela, Co-founder of Props, told CoinDesk that since launching earlier this month, more than 230,000 individuals have acquired Props through engaging with either YouNow.
Additionally, while he couldn’t disclose hard figures, Sela said YouNow has seen “content creation increase by double digit figures [since the introduction of the Props rewards incentive], which is huge for a platform all about content creation.”
As part of the regulatory arrangement, which took approximately a year to sort out, Props are fully transferable between participating wallets and platforms, but cannot be exchanged for fiat currency. In this sense, Props function as a utility token, bound to its specific purpose.
However, through the Coinbase Custody listing, the institutional investors and major content creators that hold Props will be able to shield their funds with an industry-recognized custodian. All digital assets with Coinbase Custody are segregated and covered by the company’s insurance policies. Sam McIngvale, CEO of Coinbase Custody, said in a statement:
“No other platform can offer the safety and protection of our technology and comprehensive insurance. But more than that, for projects like Props where network participation and validators are critical to the chain’s operation, Coinbase Custody offers the only option that allows for both the secure cold storage of assets and the ability to interact with the network.”
Sela noted in 2017, Props pre-sold $21.5 million tokens to such investors, who “have received the tokens, and have meaningfully exposure.” He said these holders include Union Square Ventures, Comcast, and Coinfund.
Though the token has attracted a number of institutional investors, Sela also stressed the amount of holders who first came to cryptocurrencies through being rewarded with Props.
“It’s an experiment to see what happens when putting a crypto token in hands of real world people that are attracted by its utility.”