SEC closes $75 million metaverse fund

Republic company, which started the “Republic Realm Metaverse Real Estate Fund” in March 2021, right in the middle of the bull season of the period, announced that it closed the fund due to advice and feedback from the SEC.

Stating that a lot of dynamics, including the regulations in the crypto money world, have changed since they started the fund, the company used the following statements:

“The regulations that have developed since we launched the fund and the feedback we have received from the SEC recently prevented us from seeing a future in this fund. Unfortunately, we have to say that the fund has been closed as of now. We have started working to present a new proposal and fund similar to this one.”

What was the fund for?

The “Republic Realm Metaverse Real Estate Fund” was opened to accredited investors in March 2021, and then to all investors in December. The fund , whose priority was to purchase land and real estate from NFT platforms such as Sandbox, Axie Infinity and Decentraland, and to make long-term investments, reached the maximum level of 75 million dollars in a very short time.

The development of Metaverse and the appreciation of the investments made in the shopping malls, organization areas and other departments to be made on the aforementioned platforms would enable investors to get a share of these gains.

The fund also experienced a total growth of 145% on the day it was first launched and later on when it was opened to general investment. However, the Fed’s monetary tightening policies and the declines in cryptocurrencies, especially the Russia-Ukraine war, caused things not to go well.

FTX’s bankruptcy and events further increased the SEC’s pressure on crypto companies, and Republic finally decided to terminate the fund. From the statement, it is seen that the company went to the SEC to request feedback and it was decided to terminate the fund based on the recommendations.

This type of investment, also known as equity crowdfunding, allows companies to raise funds by selling securities to large groups of investors, often offering shares in return.