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.
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.com 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.”