About VirtualCoin (VCOIN)

Together Labs' IMVU is a blockchain-based metaverse/world-building game. VCOIN is a fiat-convertible digital asset similar to a stablecoin.

According to Cointelegraph, VCOIN enables players to participate in building their universe e.g. creating 3D avatars and purchasing collectible items. VCOIN facilitates such transactions.

An ERC20 running on Ethereum, VCOIN, according to IMVU, leverages the Ethereum network as it works toward driving peer-to-peer transactions not only in the IMVU 3D avatar social world but also potentially in other virtual settings down the line. IMVU describes its virtual economy as thriving.

At one point in 2021, IMVU said its economy saw more than 27 million monthly transactions and 14 billion in-game credits changing hands each month for virtual goods and services. Linchpin to this activity, VCOIN can be converted by to cash or credits that can be used within the ecosystem.

Players in IMVU create their own virtual items, as VentureBeat explained.

Such items might be clothing or furniture for people to use with their social avatars. When other players buy those items, for example, the creators get paid in VCOIN; when holders cash out, “IMVU takes a cut,” VentureBeat said.

VCOIN is backed by IMVU's parent company Together Labs which, per an IMVU FAQ, holds the funds used "to purchase back VCOIN when users want to cash out."

VCOIN can be converted to fiat through Uphold, subject to terms and conditions.

Who created VCOIN?

The coin was born of a partnership between Together/IMVU and Immutable X, a non-fungible token (NFT)-centric protocol running on Ethereum. 

When was VCOIN created and how much was it worth?

VCOIN went live in January 2021. Although not quite a typical stablecoin, the digital currency is akin to one, and it does hold value both inside and outside of IMVU's virtual world, a community said to total some 7 million monthly active users.

How is the price of VCOIN determined?

IMVU sells VCOIN on the platform at a fixed price of 250 VCOIN for $1.00, or $0.004 per VCOIN. VCOIN holders may also convert their VCOIN into fiat currency by selling their VCOIN at the same fixed price less a transaction fee of 10%, subject to terms and conditions.

IMVU said it initially created a supply of 12.5 billion VCOIN, which is approximately equivalent to the implied value of the supply of credits currently in circulation in the IMVU virtual economy, according to the FAQ.

“While this supply should satisfy foreseeable user demand, IMVU has the ability to generate more VCOIN to ensure adequate supply to maintain the fixed price and eliminate any incentive for speculation, which will ensure the best experience for our users,” the IMVU FAQ blog said.

Why does VCOIN have value?

With 14 billion credits exchanging hands each month, IMVU said, its economy is “a ready-made environment for massive VCOIN adoption.”

IMVU insists it will maintain a consistent purchase and sale price intended to prevent fluctuation in the price of VCOIN.

What are the main benefits/advantages of VCOIN?

• IMVU boasts of a massive economy and VCOIN was built to be integrated into it. It’s designed to drive adoption and usage i.e. VCOIN can be easily purchased with a credit card.
• IMVU users trust the platform, economy, and the brand, IMVU said. Thus, by providing a branded token with a simple-to-use experience, users are seen as more likely to adopt VCOIN.
• Users can establish an external digital wallet with Uphold, a third-party service provider, and transfer their VCOIN to this digital wallet. From their Uphold digital wallet, users will be able to convert their VCOIN into fiat currency, such as dollars or euros.
• According to VentureBeat, IMVU received a crypto-centric no-action letter from the staff of the U.S. Securities and Exchange Commission (SEC), enabling IMVU to sell VCoin as a transferable non-security. The advantage of teaming up with Immutable X is that Together Labs gets access to a layer-2 solution for NFTs on the popular Ethereum blockchain.