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Social avatar platform IMVU is launching its new VCOIN that allows users to buy, gift, hold, earn, and convert the stablecoin into fiat currency. VCOIN will power IMVU’s virtual economy in the metaverse built on the popular Ethereum blockchain. The stablecoin is an ERC-20 token, exchangeable both on and off the platform. Initially, 250 VCOIN will be sold for $1 or $0.004 per VCOIN.
IMVU Launches VCOIN Stablecoin
IMVU platform is already processing over 27 million transactions/month through its non-blockchain-backed credits. The latest stablecoin comes in aid for users involved in those transactions for enabling them to convert their earnings. It is also usable both on and off the platform, in peer-to-peer transactions, and conversion to fiat.
To use VCOIN, users are not needed to provide additional KYC details until the coins are moved off the platform into wallets where they will function as the usual ERC tokens.
With VCOIN, users will be able to pay for goods and services on the platform, without the additional need for cryptocurrency wallets, or even bank accounts. The earned stablecoin will also be convertible into cash via Ethereum cryptocurrency wallets at an established rate.
SEC Approved Payments Within IMVU
IMVU was the third crypto token to receive a no-action letter from the U.S. Securities and Exchange Commission. The SEC had to decide whether VCOIN was security. If it had been classified as such, it would have required a lot of disclosures as required of public companies. For instance, the sale of the VCOIN would then be only limited to accredited investors having a certain net worth.
The no-action letter from November 2020 signifies that the regulatory agency won’t take action against IMVU for the VCOIN currency. However, it did set out the necessary conditions for VCOIN such as keeping a stable price to keep the token from behaving as an investment into IMVU.