- MegPrime is meant as a useful token for funds and rewards.
- Advantages could embrace rebates, discounted present playing cards, housing-related advantages, and extra.
- Megatel Properties will start issuing MegPrime tokens within the coming weeks.
Megatel Properties, a privately held Texas homebuilder, introduced that it has obtained the inexperienced gentle from the SEC through a no-action letter to permit it to launch a crypto-based rewards and funds program utilizing a token referred to as MegPrime.
A no-action letter is totally different from a proper asset acknowledgment. Which means that the SEC has indicated it won’t take motion in opposition to this system so long as Megatel follows its personal guidelines, a notable signal of regulatory flexibility in a tricky setting.
As for MegPrime itself, it’s meant to be a useful token for funds and rewards, fairly than an funding or stock-like safety. Customers earn rewards in MegPrime tokens for on a regular basis bills reminiscent of hire or mortgage funds.
Moreover, the tokens can be utilized at retailers utilizing digital wallets and cost playing cards, successfully appearing as a cryptocurrency cashback or loyalty system. Advantages could embrace rebates (which might attain as much as 20%), discounted present playing cards, home-related advantages, and extra.
It was reported that renters who use MegPrime to pay their hire could also be eligible to make use of as much as $25,000 of their previous hire towards a future residence buy. It’s also possible to convert your tokens to USD for versatile utilization.
The corporate plans to start issuing MegPrime tokens within the coming weeks.
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why is that this vital
Megatel’s MegPrime venture is an early instance of a mainstream firm combining residence shopping for companies with digital tokens for common prospects in addition to funding merchandise.
This builds on a program in early 2019 wherein Megatel loaned renters an quantity equal to 1 yr’s hire as capital to purchase a house. Its loyalty advantages at the moment are being up to date and improved utilizing blockchain.
Megatel targets day by day spending and saving habits through the use of crypto rewards for home-related actions. If profitable, the template might be offered to different non-cryptocurrency corporations that wish to add digital tokens to their buyer loyalty applications.
The SEC’s choice to difficulty a no-action letter additionally indicators a extra versatile regulatory strategy, permitting non-cryptocurrency corporations to extra safely take a look at blockchain and crypto initiatives with out concern of rapid penalties.
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