Props Network Raises $2M, Moves PropsChain from HyperLedger to Algorand Blockchain to Support Growth
The Algorand proof-of-stake blockchain is set to onboard a new network – dubbed Props by YouNow – increasing the market share of this Ethereum competitor significantly.
Props network currently runs on a private blockchain, but will soon be leveraging Algorand’s public ecosystem to better serve its growing client base.
The news follows a $2 million capital raise from the recently concluded YouNow's Props Token sale, which was funded by its strategic partners: Borderless Capital, Union Square Ventures, and the Dating.com group amongst others.
A press release on April 30 detailed the fundamental value of this partnership, as well as underlying opportunities for both Algorand and Props. According to the announcement, its current 3 million-strong user base on Props is expected to hit 5 million within the next month; a motivation to further scale to a public blockchain.
The Underlying Opportunity
Notably, Props has a wide user base compared to its peer projects. Most of its success has been attributed to a unique approach to leveraging blockchain tech. The Props network is designed to reward contributors of a specific network or app with a financial stake.
This is where blockchain and the Props native token come in; basically, its open network facilitates the integration of Apps through API’s. The App owners can then leverage Props ecosystem to increase participation within their networks.
The Props token enjoys a greater level of regulatory certainty, to some extent being the first Regulation-A consumer token as per the SEC guidelines. Consequently, making it much easier to derive value from its token, as it can be used across various apps within its network. USV Partner, Nick Grossman, echoed these sentiments:
“Props is bringing one of crypto's killer features – enabling participants to share in the wealth generated on the networks they help grow – to mainstream apps.”
Given the growth prospects, Props move to Algorand's blockchain will see the platform enhance its reliability and speed. Thus facilitating higher volume transactions and security within the Props network.
Borderless' Managing Partner, David Garcia, said that the move by Props to Algorand’s scalable blockchain is quite significant and will probably set the pace for future growth,
“The inherent benefits of a public blockchain are key drivers for enterprises like Props to accrue value through transparency of economic activity and adoption.
This will ignite a network effect bringing more apps and projects like Props to build on Algorand.”
This milestone has since been welcomed by Algorand’s team with the company’s CEO, Steve Kokinos, noting that Prop’s sudden growth is a signal towards mainstream blockchain adoption. As of press date, Prop’s portfolio includes several apps is tied to various sectors such as the international dating scene.