The U.S. Securities and Exchange Commission (SEC) held talks with the company behind a $75 million metaverse fund. As a result of these talks, an announcement came that the metaverse fund would be closed. Here are the details…
SEC targets metaverse fund
Republic is the third largest equity crowdfunding portal in the US and owns Seedrs, the largest portal in the UK. In March 2021, they launched the “Republic Realm Metaverse Real Estate Fund,” which is available to only a handful of accredited investors. In December 2021, they launched a TTW regulation campaign to open it up to all investors. It was incredibly popular at the time. cryptocoin.comAs we have also reported, it has maximized all of the maximum 75 million dollar reservations in a very short time.
The fund primarily focuses on buying virtual real estate in NFT games such as Sandbox, Axie Infinity and Decentraland. After purchasing the land, there is the idea of long-term retention while continuing to transform it into virtual malls, event spaces, and other communities. Such communities can accrue “rents” similar to real estate and provide recurring income to the fund. However, what attracted this $75 million investment was the fund’s incredible performance. Between its initial launch in March and the December Regulation A hike, the fund returned 145 percent of its invested capital.
Fund negatively impacted by the drop in the cryptocurrency market
But things don’t seem to be going so well since then. Crypto-based assets have dropped significantly since their peak in 2021, and the US Securities and Exchange Commission (SEC) has been putting pressure on the space since the collapse of FTX. Also, the uptrend is currently uncertain and has not been able to receive funds from investors since December 2021. Now the SEC has officially closed this fund, so the fund will not move forward. In a recent update, Republic said:
Based on the feedback we have received from the SEC, as well as other regulatory events that have occurred since we started this process, we no longer see a path for this proposal. Unfortunately this means that the offer will be canceled from now… We are trying to make the necessary adjustments to finally bring a similar offer to market.
While the fund’s performance has declined since its peaks in 2021, the fund itself does not appear to be closing. Instead, the Arrangement A proposal will not continue. Fortunately, it looks like the fund will continue in other ways or a similar offering will emerge. Still, time will tell what will happen in the markets in the long run.
