IMVU Social Avatar Platform Launches VCoin A transferable digital currency that will allow users to buy, give, store, earn, and convert profits into real money.
The launch comes following a November ruling from the US Securities and Exchange Commission, which approved IMVU’s plan to secure payments in the virtual world using a blockchain-based cryptocurrency dubbed VCoin.
The Redwood City, California-based company wants VCoin to support the virtual economy in the metaverse, a universe of virtual worlds that are all interconnected, as in novels like Snow accident and The first player is ready… IMVU will be revealing the event at the GamesBeat Summit: Into the Metaverse on January 27-28.
The SEC’s letter of “inaction” was a big deal. IMVU CEO Daren Tsui said in an interview with GamesBeat that other virtual world operators such as Roblox and Fortnite game worlds can benefit from this decision if they follow the same rules as IMVU.
VCoin unleashes the full potential of the IMVU virtual economy by adding a robust service economy to the digital goods economy. VCoin, built on the widespread Ethereum blockchain, is an ERC-20 token that can be exchanged both on the IMVU platform and, for the first time, off the platform.
Available now for IMVU desktops, mobile web platforms, and web platforms, VCoin integrates seamlessly with IMVU, providing secure global peer-to-peer transactions with the click of a button.
IMVU has 7 million monthly active users exchanging 14 billion credits per month and making 27.5 million monthly unique transactions. More than 50 million products are available on the market today, and the catalog is growing by 400,000 items per month.
With the addition of VCoin, users can now pay for goods and services on the platform – no complicated crypto wallets or even bank accounts required – and then convert their earned VCoin into cash at a set rate.
Having something like VCoin is important because the metaverse doesn’t have to be a single world run by one company. Most likely, it will be a set of virtual worlds interconnected in such a way that travel between the worlds is simple and smooth. If you buy something in the virtual world from a company or from another user, you want to be able to trust this transaction and transfer the object to another world. If you are selling an item, you want to be able to receive money and then cash it out. And from a companies perspective, creating a marketplace where users can deliver digital goods can be much easier than one company’s own developers trying to populate a meta-universe full of digital goods.
The key to the metaverse
This is what IMVU does with VCoin, a blockchain-based digital currency backed by a huge user base (Ethereum) and a thriving economy, soon to be launched on the IMVU platform. Blockchain is a transparent and secure digital ledger that allows you to uniquely identify objects and determine the ownership of these objects. Blockchain technology is the backbone of cryptocurrencies, digital forms of money created by a wide variety of companies. Ethereum has become popular in part due to its unique features (such as the ability to create smart contracts or set specific rules for the use of currency) and its widespread support.
Before VCoin, users had to use third-party tools like PayPal or Venmo to receive money. But this is not easy with users in different countries. With VCoin, payment will become easier, Cui said. Users can send VCoins to anyone else on the platform and recipients will be able to convert them to real money through Ethereum cryptocurrency wallets.
Nowadays, many companies have their own payment systems, but they are limited. Their currencies only work on their own platforms and it is quite difficult to turn this currency into cash. The rules limit the frequency of withdrawing currency or maximum amounts. To transfer money between states, service companies must be licensed for each state, as is the case with Western Union. It’s the same with international money transfers.
The SEC had to decide if VCoin is a security, like a sale of shares. If he were to classify it as such, he would require a lot of disclosure as required by public companies, such as selling only to accredited investors who are aware of what they are doing and have a certain net worth. But for the third time in its history, the SEC issued a “no action letter”, which meant it would not take regulatory action against the IMVU for VCoin.
VCoin will be priced at 250 VCoin at $ 1 or $ 0.004 per VCoin. Users can buy, transact and earn VCoins on IMVU and easily transfer VCoins from the platform to an open digital wallet, send to any ERC-20 wallet, or convert them to fiat money at the original purchase price minus transaction fees.
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