Digital avatar and social networking platform IMVU announced the launch of its VCOIN digital token Tuesday, after getting the green light from the U.S. Securities and Exchange Commission (SEC) late last year.
- VCOIN is an Ethereum-based ERC-20 token that can be exchanged both on and off IMVU's platform.
- Users will be able to buy goods and services with the digital tokens on IMVU's platform, while earners will be able to convert tokens into cash if desired.
- “While most virtual platforms allow users to earn in-game credits, those credits cannot be converted into anything that holds value outside of that platform or game,” said John Burris, chief strategy officer.
- The token will be sold initially at a rate of 250 VCOIN for $1, or $0.004 per token.
- On Nov. 17, the SEC published a “no-action letter,” effectively granting IMVU permission to offer VCOIN to users, albeit with strict restrictions on how these tokens may be sold.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.