Social network and online metaverse platform IMVU has launched its VCOIN transferable digital currency.
The cryptocurrency will be available to all IMVU users starting from 12 January. Users will be able to buy and sell VCOIN from and to IMVU at a fixed price of 250 tokens for $1. The company noted that there could be a premium for purchases made from mobile devices, as both Google and Apple require apps to pay fees.
The U.S. Securities and Exchange Commission (SEC) greenlighted the coin’s release in November 2020 through a no-action letter. According to the letter, VCOIN cannot be considered a security under Section 5 of the Securities Act and doesn’t need to be registered with the SEC.
The letter set out boundaries for how the token is to be used. IMVU must not use proceeds of the sale of VCOIN to finance the platform’s upgrade and promote listing and trading on any third-party platform. VCOIN holders will be subject to KYC and AML checks both upon establishing wallets and on an ongoing basis. Hot wallet provider Uphold will manage the VCOIN wallets.
While using the platform, VCOIN holders can treat the token like the platform’s existing credits and purchase goods and services on the platform. VCOIN earned on the platform can then be withdrawn to wallets and converted into cash at a stable rate. Once transferred to a wallet, VCOINs will function as typical ERC-20 tokens.
IMVU has 7 million monthly active users who exchange around 14 billion credits every month, engaging in 27.5 million unique monthly transactions.