US’ 3rd Largest Equity Crowdfunding Site Cancels $75 Million Metaverse Fund
Republic has canceled its $75 million investment in Metaverse due to regulatory action.
However, the company has promised to bring a similar product to market.
The SEC action has cost BUSD more than $6 billion in market share.
Republic, the third largest equity crowdfunding portal in the US, withdrew its $75 million investment in Metaverse due to recent US Securities and Exchange Commission (SEC) regulatory action.
“Based on the feedback we received from the SEC and other regulatory events that have occurred since we began this process, we no longer see a path forward for this offering,” the Republic statement read.
However, the company has expressed a commitment to make the necessary adjustments to bring a similar product to market. Republic will launch the Republic Realm Metaverse Real Estate Fund in March 2021 to a small number of accredited investors only. In the months that followed, we added another campaign, opened it to all investors, and raised $75 million.
The fund was intended to purchase and hold virtual real estate in NFT games such as Sandbox, Decentraland, and develop it into virtual retail malls, event venues, and other communities.
According to the report, the fund’s internal rate of return (IRR) was 145% from its initial launch in March to its Regulation A fundraising in December.
In particular, SEC regulatory action has resulted in the loss of over $6 billion in market share from Binance’s stablecoin, BUSD. As of January 1, 2023, BUSD has a market valuation of over $16 billion, according to data from market tracking website CoinMarketCap.
The US’s third largest equity crowdfunding site has canceled its $75 million Metaverse fund, first appearing on Coin Edition.