In a disclosure expected to be published Wednesday by the U.S. Securities and Exchange Commission (SEC), blockchain-based live-streaming company YouNow reported revenues have grown steadily since the release of its props token in July.
The filing follows YouNow receiving approval from the SEC this summer to distribute its props token under a Regulation A+ qualification, one of the new categories of fundraising created by the JOBS Act of 2012. Besides YouNow, only a handful of crypto firms have chosen the Reg A+ framework to date, including Blockstack.
The filing suggests that regulated token sales can be remunerative in the long term, with YouNow’s revenues up 32 percent since the props token was added to the app in July. You can view all of YouNow’s SEC filings here, along with its original offering circular here.
“We expected a lift in business results of up to 10 percent upon providing users with the Token’s utility and then another lift of approximately 10 percent upon exchange listing/liquidity,” YouNow CEO Adi Sideman told CoinDesk via email, adding:
“The reality proved significantly better than expected.”
The company, backed by Union Square Ventures and others, has also seen more influencers drawn to the app.
Props is an ERC-20 token that lives on the ethereum blockchain. YouNow’s decision to create the token completely changed the company’s business model.
Sideman said the Reg A+ framework has proven helpful in validating a long-held belief among many token-backed startups: that consumers hunger to share in the growing value of a network.
“The SEC allows me to say that you have a potential upside in this network.