Republic’s Real Estate Fund Focused on NFTs Fails to Progress Due to SEC Crackdown

02/27/2023 22:58 • Tech Ticker • 136 views

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.

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

Interpret the above information:

Republic, the third largest equity crowdfunding portal in the United States, launched a new fund called “Republic Realm Metaverse Real Estate Fund” in March of 2021. It quickly reached its maximum booking amount of $75 million from a small group of certified investors, intending to focus on the purchase of virtual real estate in NFT games, including Sandbox, Axxie Infinity, and Decentraland. Their aim was to hold on to this virtual land for the long term and continue to develop it into a thriving virtual shopping center or activity space. However, the value of assets based on encryption had begun to decline since their peak in 2021.

Additionally, the SEC began to scrutinize this sector following the collapse of FTX, a company that had been specializing in cryptocurrency derivatives. Since then, the SEC has been enforcing penalties on various entities involved in the encryption industry. At present, the financing for the Republic Realm Metaverse Real Estate Fund has been on hold since December of 2021, preventing investors from accessing their funds. Republic spoke regarding the situation, reporting that due to the SEC’s official decision to close down the fund, it will no longer be able to progress.

This is a delicate situation for Republic and their investors. They had decided to invest in this virtual venture based on the premise of the NFT games’ popularity and the increasing growth of virtual real estate. Yet, the reality of the present has not matched their expectations. The decline in such asset values and the regulatory scrutiny of these areas have led to the unsatisfactory results of Republic Realm Metaverse Real Estate Fund.

The Republic Realm Metaverse Real Estate Fund’s failure to progress indicates the potential risks that come with investing in new and developing fields, especially as they relate to the rapidly changing sphere of cryptocurrencies and blockchain technologies. At present, the regulatory landscape is in a transitional phase, posing a unique challenge to their development. The keywords associated with this article are equity crowdfunding, NFT games, virtual real estate, SEC crackdown, and investment risk.

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