- MegPrime is meant as a useful token for funds and rewards.
- Advantages could embody rebates, discounted reward 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 by way of a no-action letter to permit it to launch a crypto-based rewards and funds program utilizing a token known as MegPrime.
A no-action letter is completely different from a proper asset acknowledgment. Which means the SEC has indicated it is not going to take motion in opposition to this system so long as Megatel follows its personal guidelines, a notable signal of regulatory flexibility in a troublesome setting.
As for MegPrime itself, it’s meant to be a useful token for funds and rewards, reasonably than an funding or stock-like safety. Customers earn rewards in MegPrime tokens for on a regular basis bills corresponding to hire or mortgage funds.
Moreover, the tokens can be utilized at retailers utilizing digital wallets and fee playing cards, successfully performing as a cryptocurrency cashback or loyalty system. Advantages could embody rebates (which may attain as much as 20%), discounted reward 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 dwelling 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 necessary
Megatel’s MegPrime mission is an early instance of a mainstream firm combining dwelling shopping for companies with digital tokens for basic prospects in addition to funding merchandise.
This builds on a program in early 2019 wherein Megatel loaned renters an quantity equal to at least one yr’s hire as capital to purchase a house. Its loyalty advantages are actually being up to date and improved utilizing blockchain.
Megatel targets every day spending and saving habits by utilizing crypto rewards for home-related actions. If profitable, the template might be offered to different non-cryptocurrency firms that need to add digital tokens to their buyer loyalty packages.
The SEC’s determination to problem a no-action letter additionally alerts a extra versatile regulatory method, permitting non-cryptocurrency firms to extra safely check blockchain and crypto tasks with out concern of rapid penalties.
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