The avatar social platform IMVU is introducing the Ethereum-based crypto token VCOIN to its ecosystem. VCOIN will allow users to buy, gift, hold, earn and convert the digital currency to other cryptocurrencies, dollars or euros. IMVU is launching VCOIN with immediate effect in the desktop, mobile and web platforms of their virtual world.
In a general month IMVU has more than 27 million transactions with a virtual value of 13 billion in-game credits. VCOIN basically replaces these credits, giving more economic power to users within these virtual environments. According to IMVU they have 7 million monthly active users on their platform.
There’s a market cap of 12.5 billion VCOIN, according to a listing of the token on Etherscan. They will sell 250 VCOIN for one dollar, which means $0.004 per VCOIN. From a business perspective IMVU will still make money from VCOIN. Not only do they sell VCIOIN for $0.004 per token, but they also take 5 percent per transaction on their platform. In addition IMVU takes a 10 percent fee whenever VCOIN is converted into cash. Credit card fees however, will be something IMVU takes care of.
Before users off-load their VCOIN into the open market, they will need to go through the KYC process of the Uphold crypto payment system. However, users who only use the token inside IMVU can remain completely anonymous. Probably because of this element, the SEC already approved VCOIN as a transferable non-security.
“The service economy is a huge part of the IMVU experience. For example, if two users want to host an event, they may hire a room decorator, a photographer, a stylist, and more, to make their event happen. Historically, payment for those services was happening off-platform which adds a layer of friction and vulnerability to the transaction. With VCOIN, users can instantly pay for those services on the platform, and then easily convert those earnings to cash around the globe.”
Daren Tsui, CEO of IMVU
What about IMVU NFTs?
With IMVU introducing their audience to a crypto token, it only makes sense to also dive deep into the non-fungible token space. When digital fashion items and artworks can be traded among community members, and also sold or even used outside the IMVU universe we can really talk about a metaverse. However, IMVU isn’t there yet.
“VCOIN is the first crypto play for IMVU and its broader metaverse. There is a huge market opportunity both on and off platform for VCOIN. That said, given IMVU’s massive virtual goods economy with 50 million goods in its marketplace, we are aware of the awesome NFT opportunity in and around our ecosystem”
John Burris, Chief Strategy and Blockchain Officer at VCOIN
Even though IMVU doesn’t offer NFTs just yet, it’s something they obviously keep an eye on. Perhaps that could be the next major step for IMVU into the decentralized metaverse.
What is IMVU?
IMVU is a 3D social world where players create their own avatars. Users organize fashion shows and do all kinds of creative things. VCOIN is the newly launched cryptocurrency that fuels the economy of the virtual world. It allows users to provide digital service for VCOIN, and then export their VCOIN earnings and swap it for dollars or euros. With 7 million monthly active users IMVU has quite a large community. Users starting with IMVU, will first need to create a realistic avatar. At the moment none of the virtual clothing or accessoires are stored on the blockchain.
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