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.
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