KEY POINTS

  • Social company IMVU has launched its own digital currency called VCOIN
  • VCOIN will run on the Ethereum blockchain, making it accepted wherever Ethereum is
  • VCOIN is available at a transfer rate of 250 VCOIN to $1 USD

Cryptocurrency is continuing through its growing phases, as no one digital currency has really taken over. That hasn’t stopped avatar-based social platform IMVU from joining in as the company has revealed its own digital currency called VCOIN.

VCOIN is currently available at an exchange rate of 250 coins for $1 USD. As of right now, VCOIN is available to use in IMVU, and it is treated just like real money. Users can send each other VCOIN like any other currency and can then convert all the VCOIN in their account to real money at any time. IMVU says the company will maintain a consistent purchase and sale price for VCOIN to try and prevent any price fluctuations that may occur.

If you are wondering if this is legal or secure, VCOIN is built on the Ethereum blockchain and is ERC-20 compliant. Because of this, VCOIN is also set up to be accepted with a number of virtual marketplaces. Additionally, the SEC has enabled VCOIN to be a transferable non-security. 

So, the big question here is “why?” Why is a social company like IMVU creating its own digital currency? According to the company, VCOIN creates a way for people who regularly use IMVU to see some real-world benefits. IMVU was already using a Credits system with over 27 million monthly transactions. That means over 14 billion Credits change hands every month on IMVU. The adoption of VCOIN keeps the same concept of credit transactions, but adds something more worthwhile on top of it. 

Vcoin VCOIN can only be purchased in IMVU, but can be spent elsewhere Photo: IMVU

As for IMVU, the company will take a small transaction fee for every peer-to-peer VCOIN transaction. Additionally, the thought is that by adding the possibility of earning real-world money, the adoption of VCOIN should incentivize users to increase their engagement with the service while building a larger user base.

The already existing Credits will not be going away from IMVU. Instead, VCOIN is an added option for currency within the app.

The real question for VCOIN will be if IMVU users respond well to it or if they will ignore it and continue using the already existing Credits. VCOIN being accepted outside of IMVU will help provide an incentive for adoption, so we’ll have to wait and see.