A Letter from Our CEO
In 2017, we embarked on a mission we believed in deeply — to enable users to financially participate in the success of the networks they help grow. We have devoted ourselves to creating Props Tokens and developing the Props Loyalty Program ever since. We touched the lives of 10 million users by introducing them to crypto and giving them, for the first time, a stake in the network in which they participated.
However, given the regulatory constraints under which Props is operating, we no longer believe that the Props Loyalty Program has a viable future. And so, with a heavy heart, we intend to end the Props Loyalty Program before the end of the year and discontinue issuing new Props Tokens under Regulation A+ at that time.
To build great products, startups need flexibility and agility to evolve and enhance their offering in response to user behavior, customer needs, available tech and market trends. This is particularly true in a rapidly growing new category such as crypto. Changes to products in this type of market need to be implemented with speed and dexterity.
Props Tokens’ status as qualified securities significantly limits our ability to respond to changing market conditions in a commercially feasible manner. The Reg A+ continuous offering environment in which we operate requires us to make public filings and often get prior regulatory approval for product changes. As a result, we are unable to follow anything remotely like proper product development of “launch, measure, iterate” and struggle to launch new key functionalities we develop (like staking or per-app tokens). In addition, although we submitted to the regulation of Props Tokens as qualified securities, no U.S. exchange has been able to list crypto assets such as the Props Token, which has hindered holders wishing to trade them.
As a result, following years of work and the devotion of substantial resources, we have not been able to develop Props Tokens in ways that could lead to commercial success, and there is no reasonable prospect of that happening in the future, given the regulatory framework.
Following a difficult decision process, we have announced that we intend to stop the continuous offering of Props Tokens in approximately four months. These months will serve as a transition period during which Props Apps users who have accrued Pending Props will have an opportunity to claim Props Tokens. During this four-month period, we will work diligently with our partner apps to enable users who have accrued Pending Props to claim Props Tokens. We are also exploring strategic alternatives with respect to the Props Token and the Props Loyalty Program.
We are grateful to the community members, investors, developers, users and partners that have supported us on this journey. Our families. Most of all — our team members, who have put in the greatest effort of all. We take pride in the part that Props has played in the evolution of the ownership economy: offering a more equitable and empowering alternative to the current structure of networks. We believe, more than ever before, that the future is user-owned.
