Pocketful of Quarters, a crypto-gaming startup, has become the first Ethereum token to receive regulatory approval from the SEC and not be considered a security. It’s a significant milestone in and of itself, but what’s especially impressive is that the project’s founder is just 12 years old.
The child in question, George Weiksner from the state of Connecticut, is already making waves in the cryptocurrency community. An achievement fit for just about anyone, his crypto-project recently became the first Ethereum token to receive SEC approval. Pocketful of Quarters received a no-action letter from the SEC, which means that it will not be recommended for enforcement action.
First to Gain SEC Approval
So, what sets this particular project from other ETH-based tokens? First off, the ‘Quarters’ token is not meant for trading. In fact, it can’t even be sold on an exchange and none of the earnings generated from token sales go into development. Instead, the token will purely be used for utility. Quarters will be used within the Pocketful of Quarters gaming ecosystem. It will allow gamers to use the token to buy player add-ons and trade these items between various games. This is one of the main selling points for blockchain technology within the gaming industry — having the ability to create decentralized marketplaces and clear ownership of digital items.
Paving the Way
George Weiksner is officially the CEO of the project and claims that he wants to make Quarters the “universal cryptocurrency for games.” He came up with the idea while talking to his dad about it, who is also a cryptocurrency enthusiast. The success of Quarters may open the door for other Ethereum-based utility tokens to be approved by the SEC. Although the SEC has historically never been open to the ‘utility token’ concept, it seems to be softening its approach in the past year. If Quarters is successful in its aims, gaming may soon prove to be the first major frontier where Ethereum tokens find mass adoption. That said, general and widespread interest in blockchain technology is in demand, as a wide array of companies are racing to leverage and implement it in their businesses. Do you believe that gaming will be one of the first industries which will be disrupted by blockchain technology? Let us know your thoughts in the comments below.Image courtesy of Shutterstock.
