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The MegPrime token is designed to be a payment and reward token.
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Reward options include gift cards at a discount, rebates and housing benefits.
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Megatel Homes issuing MegPrime tokens within the next few weeks.
Megatel Homes, privately-owned Texas construction company, announced that it received the green light by the SEC in the form of a no action letter. This allowed it to launch an incentive and payment program based on cryptography using a token named MegPrime.
A no-action is not the same as an official asset approval. It means that the SEC has indicated it will not take action against Megatel as long as Megatel adheres to its own rules. This is a notable example of regulatory flexibility within a strict environment.
MegPrime is not intended to be an investment or security like a stock. It’s a token that can be used for payments and rewards. MegPrime tokens are rewarded to users for their everyday spending including rent and mortgage payments.
Tokens can also be used to pay for goods and services at merchants with a digital wallet or payment card. This is a virtual cashback system. Rewards can include rebates, discounted gift cards and housing benefits.
Renters who pay their rent using MegPrime could be eligible to apply as much as $25,000 of the past rent towards a future home. Also, tokens are convertible to US dollars so that they can be used in a flexible way.
In the coming weeks, MegPrime tokens will be issued by the company.
RelatedSEC chair calls this a pivotal week for U.S. Crypto Regulation
Why This Matters
Megatel’s MegPrime is a pioneering example of a mainstream firm combining home-buying services with digital tokens, and not just for investments.
Megatel’s 2019 program, where renters were credited with an amount equal to a year’s rent towards a home purchase, is now being built upon. This loyalty benefit is being updated and enhanced using blockchain.
Megatel targets everyday spending and savings habits by using crypto rewards to reward home-related actions. If Megatel’s program is successful, it could serve as a model for other companies that do not use crypto to add digital tokens into their customer loyalty programs.
The SEC’s decision of issuing a no-action-letter shows a more flexible approach to regulation, allowing non-crypto companies the opportunity to test out blockchain projects and crypto without immediate fear.
Related Ripple Urges SEC Abandon Decentralization As A Legal Test
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