The crowdfunding platform Republic cancelled the $75 million yuan universe fund

It is reported that Republic, the third largest equity crowdfunding portal in the United States, launched the “Republic Realm Metaverse Real Estate Fund” in March 2021, which is only for a few certified investors. It reached the maximum booking amount of $75 million in a very short time. The fund mainly focuses on the purchase of virtual real estate in NFT games, such as Sandbox, axxie Infinity and Decentraland. After buying the land, their idea is to hold it for a long time and continue to develop it into a virtual shopping center, activity space and other communities. However, assets based on encryption have declined significantly since the peak in 2021. Since the collapse of FTX, the United States Securities and Exchange Commission (SEC) has been cracking down on this field. In addition, since December 2021, the financing has been on hold and investors’ funds cannot be obtained. Republic said that now the SEC has officially closed it, so the fund will not make progress.

Interpretation of this information:

Republic, one of the largest equity crowdfunding portals in the United States, recently launched a real estate fund focusing on virtual real estate in NFT games. The “Republic Realm Metaverse Real Estate Fund” achieved maximum bookings of $75 million. The fund plans to hold virtual land purchased from games like Sandbox and Decentraland for long-term investments to develop them into shopping centers and activity spaces. However, the collapse of FTX and SEC cracking down on the field has hit assets based on encryption strongly. Furthermore, since December 2021, the financing has been on hold, and investors’ funds cannot be obtained. Republic has announced that the SEC has closed the fund officially, so it cannot continue.

Interpretation:

Republic’s move to launch a real estate fund focusing on virtual land in NFT games like Sandbox, axxie Infinity, and Decentraland was a big step towards investment in the Metaverse world. The success of the fund in such a short time reflects an evolving investment landscape where investors seek alternative sources that rely on the virtual world. However, with the recent collapse of FTX and the SEC cracking down on the field, the fund lost momentum. Furthermore, since December 2021, the financing was on hold, and investor funds have been frozen, leading to uncertainty and potential losses in the short and medium term.

The burgeoning Metaverse is an interesting investment opportunity, given the potential of virtual land for long-term investment and its value in virtual shopping experience and communities. However, the collapse of FTX and the SEC crackdowns have led to significant declines in assets based on encryption. These developments have created significant uncertainties regarding Metaverse investing. The SEC’s intervention resulting in the closure of the fund is yet another example of regulatory scrutiny of this technology. These events may dampen investors’ interests and create mistrust in this area.