The Republic company, which initiated the “Republic Realm Metaverse Real Estate Fund” in March 2021 during the peak of that period’s bull market, has announced the closure of the fund following guidance and feedback from the SEC.
The company pointed out that the landscape, including regulations within the cryptocurrency realm, has significantly shifted since the fund’s inception. They stated, “Developments in regulations since the launch of our fund, coupled with recent feedback from the SEC, have made it clear that continuing with this fund is not feasible. Regrettably, we must announce the fund’s closure effective immediately.
Efforts are underway to develop a new proposal and fund akin to the original.”
What was the fund for?
Launched in March 2021 for accredited investors and later opened to the general public in December, the “Republic Realm Metaverse Real Estate Fund” was primarily focused on acquiring land and real estate on NFT platforms like Sandbox, Axie Infinity, and Decentraland for long-term investment purposes.
Quickly reaching its cap of $75 million, the fund was poised to capitalize on the growth of the Metaverse and the appreciation of investments in shopping malls, event spaces, and other venues on these platforms, offering investors a slice of these gains.
The fund achieved a remarkable 145% growth from its inception and upon opening to broader investment. Nevertheless, the Federal Reserve’s tightening monetary policies, downturns in cryptocurrency values, particularly influenced by the Russia-Ukraine conflict, and the bankruptcy of FTX, among other factors, adversely affected its performance.
These events also intensified SEC scrutiny over crypto-related businesses, leading Republic to ultimately decide to close the fund. The decision came after seeking feedback from the SEC, highlighting the company’s compliance with regulatory advice and recommendations.
Such investment ventures, often referred to as equity crowdfunding, enable companies to gather funds by offering securities to a wide investor base, frequently in exchange for shares, thereby democratizing access to investment opportunities.
You may also like this content
- The Metaverse: What it is, How to Enter, and Its Potential Impact
- Bill gates commented on Metaverse
- Metaverse 5 Reasons Why its Awesome
-
-
-
-
-
-
-
-
-
-
