You asked, we answered! Here’s where we’ll compile various questions we receive about what VCOIN is and how it will operate both on IMVU and on the Ethereum blockchain. If you have a burning question you’d like to have answered here, tag @thereal_vcoin on Twitter or send an email to firstname.lastname@example.org.
Is VCOIN a Stablecoin?
Although it can be easily confused for one, VCOIN is NOT a traditional stablecoin. VCOIN is a digital currency token that although holds a fixed buy/sell price, is not pegged to a known asset. VCOIN is backed by our parent company Together Labs which holds the funds used to purchase back VCOIN when users want to “cashout”.
What “gas fees” are incurred in moving around VCOIN?
There are no gas fees for moving VCOIN around on IMVU and no gas fees when you move VCOIN to Uphold. Gas fees only apply when you move VCOIN or other ERC-20 tokens onto the blockchain, so if a user moves their VCOIN from Uphold to an external Ethereum wallet then they’d incur gas fees. Please see the Uphold website for their gas information: https://uphold.com/en/get-started/service-fees
Will users be taxed on their VCOIN through the IRS? (And therefore required to report income made from VCOIN)
Yes, once you make the transaction — exchanging VCOIN for cash, Uphold, the platform through which the transaction is made, must report all trading activity to the IRS. For more information on Uphold tax procedures, check out their FAQs: https://support.uphold.com/hc/en-us/search?utf8=%E2%9C%93&query=taxes&commit=Search
Can VCOIN be used to purchase other cryptocurrencies?
No, VCOIN can only be used to purchase services in IMVU, gift to other users and convert to fiat through Uphold. After you convert your VCOIN into fiat though, within Uphold you are free to purchase any cryptocurrency you’d like.
How do we verify users are of age to earn an income on VCOIN?
There are two ways through which we ensure all VCOIN users are of age. Firstly, through IMVU, users will be blocked from withdrawing into Uphold if they have input that they are below the age of 18. Secondly in order to convert your VCOIN to cash, after creating and linking an Uphold account, Uphold will verify your identity and age through a simple screening process. This process involves submitting key information like a Driver’s License, identification card or passport. If either of these documents indicate that you are below the age of 18, Uphold will not verify you and you will be unable to earn money with VCOIN.
More questions to be added soon…
In the meantime, check out therealvcoin.com and follow us on our social channels to learn more about VCOIN and be the first to receive key updates and announcements!