Tuesday, July 30th 2019
The World's First Cross-Game Currency to Receive No Action Relief from the SEC is Quarters
The Securities and Exchange Commission (SEC) has issued its first no-action letter for a blockchain token made for the game industry. Quarters (Q), a cross-game, cross-platform premium game token, provides a player-friendly and industry-friendly alternative to in-game tokens traditionally locked to a single game.
The Quarters smart contract provides this necessary trust by enabling everyone - players, developers and investors - to securely and transparently buy and use a prepaid arcade token. With the SEC regulatory relief, Quarters are also legal for all players to buy and use as a consumer product in the United States.
Players can buy 400 Quarters for a dollar with their credit card or in the Apple App Store and Google Play. With Quarters, gamers can play participating titles on mobile, web, and PC. In addition, players can use Quarters to enter esports tournaments for the most popular games.
Publishers and developers can collect Quarters and exchange them for Ether. Quarters have a fixed price, and like all premium game tokens, can never be exchanged or sold for financial value. Quarters are for entertainment purposes only. Publishers and developers can easily implement Quarters at no cost via the Application Program Interface (API), then earn revenue by exchanging Quarters spent by players for Ethereum (ETH). The Quarters API integrates with popular development platforms for easy integration, including Unity, iOS, Android, Javascript, Node, Playfab, and console (coming soon).
As the first cross-game token powered by the blockchain, Quarters decentralizes in-game currency, giving players a convenient new way to buy games, power ups, skins, and other premium items in their favorite titles. Players no longer will have to waste in-game currency in titles they no longer play.
The first Quarters will be seeded to players through influencer giveaways, friend referrals, Quarters community activity, and eSport competitions. Quarters will also be available for purchase on the official website at a later date.
DLX Law has always advocated working collaboratively with regulators to get good results." said Lewis Cohen, a founder of DLX Law. "The SEC's no action relief to allow Quarters to market and sell an ERC-20 token as a consumer product and not a security is a big step forward for the entire crypto community."
"Quarters provides developers a way to reward their players for spending money on their platform by removing the shackles that tie any lingering tokens up," said Timothy Tello, COO. "Our no-action letter clears the way for a consumer-friendly future where gamers can play with their tokens wherever they want, however they want."
For more information on Quarters, please visit Pocketful of Quarters' official website, follow them on Twitter, join their Discord, or like them on Facebook.
The Quarters smart contract provides this necessary trust by enabling everyone - players, developers and investors - to securely and transparently buy and use a prepaid arcade token. With the SEC regulatory relief, Quarters are also legal for all players to buy and use as a consumer product in the United States.
Publishers and developers can collect Quarters and exchange them for Ether. Quarters have a fixed price, and like all premium game tokens, can never be exchanged or sold for financial value. Quarters are for entertainment purposes only. Publishers and developers can easily implement Quarters at no cost via the Application Program Interface (API), then earn revenue by exchanging Quarters spent by players for Ethereum (ETH). The Quarters API integrates with popular development platforms for easy integration, including Unity, iOS, Android, Javascript, Node, Playfab, and console (coming soon).
As the first cross-game token powered by the blockchain, Quarters decentralizes in-game currency, giving players a convenient new way to buy games, power ups, skins, and other premium items in their favorite titles. Players no longer will have to waste in-game currency in titles they no longer play.
The first Quarters will be seeded to players through influencer giveaways, friend referrals, Quarters community activity, and eSport competitions. Quarters will also be available for purchase on the official website at a later date.
DLX Law has always advocated working collaboratively with regulators to get good results." said Lewis Cohen, a founder of DLX Law. "The SEC's no action relief to allow Quarters to market and sell an ERC-20 token as a consumer product and not a security is a big step forward for the entire crypto community."
"Quarters provides developers a way to reward their players for spending money on their platform by removing the shackles that tie any lingering tokens up," said Timothy Tello, COO. "Our no-action letter clears the way for a consumer-friendly future where gamers can play with their tokens wherever they want, however they want."
For more information on Quarters, please visit Pocketful of Quarters' official website, follow them on Twitter, join their Discord, or like them on Facebook.
9 Comments on The World's First Cross-Game Currency to Receive No Action Relief from the SEC is Quarters
On a serious note, I personally think the people behind micro transactions and crypto currencies are perfect partners for each other.
On topic: seems like a double-pyramid with extra flavor of shadiness.
1) No regulations
2) Perfect for gambling and in-game item scams
3) Uses Ether instead of FIAT for royalty payments while charging consumers real money, which means there will be no fixed exchange rate and your earnings may go "puff" at any moment
4) Has an obscure "subscription" model on the customer side
5) No known game devs or publishers had shown any interest. Even KS campaign is very typical for vaporware, which includes references to news outlets with no actual links to articles/reviews.
6) They have a 12y.o. as a CEO
12y.o as CEO, where on earth it is legal?
We have ". Quarters have a fixed price, and like all premium game tokens, can never be exchanged or sold for financial value" . Followed by "then earn revenue by exchanging Quarters spent by players for Ethereum (ETH)."
Seeing that Etherium can be sold for real money, am I missing something or would that not be exchanging Q for financial value? Or does this mean the user can not and only the publishers developers can sell Q--->ETH---->real money?
Also, they may have a fixed price of 400Q per dollar, but since it is tied to ETH which does have a fluctuating value daily, wouldn't it just mean that the # of Q for a given microtransaction would also fluctuate to the value of ETH? It doesn't seem like a developer would be willing to sell their in-game shiny wizzlewomper for the equivalent of 1 ETH on day, and .6 ETH the next depending on the current ETH to dollar value., etc.
I may be over thinking it...
The owner of the game then takes the Quarters you spent on their game and sells Q for ETH. So, only the owner/developer can exchange Q for ETH.
The main reason for using in-game virtual currency that many developers / publishers have, is to hide the real items prices (kiddies don't do the math of 300 in-game currency * 0.05 dollars each = $15) and to make you spend more money.
Edit: this also looks like a good way to launder money from drugs or finance terrorist organizations, as if cryptocurrencies weren't enough.