Home 2023 $75 Million Fund Cancelled due to Crypto Collapse and SEC Guidance

$75 Million Fund Cancelled due to Crypto Collapse and SEC Guidance

by John Heffernan

Republic, the third largest equity crowdfunding portal in the United States and owner of the largest U.K. portal, Seedrs, launched the “Republic Realm Metaverse Real Estate Fund” in March 2021, which is only available to a small number of accredited investors. A few months later, the Test the Waters (TTW) Regulation launched in December 2021, and this is an open campaign to all investors. The TTW Regulation became extremely popular, quickly exceeding the reservation limit of $75 million.

The fund primarily acquires virtual real estate in NFT games such as Sandbox, Axie Infinity, and Decentraland. After purchasing the land, the plan is to hold it for a long time while developing it into virtual shopping malls, event spaces, and other communities. These types of communities can generate ‘rent’ in the same way that real estate does, and provide ongoing income to the fund. This means that fund investors receive dividends like any other real estate investor, and as the metaverse land grows in value, they can eventually sell for a large profit.

On the other hand, the fund’s incredible performance is likely what drew the $75 million in investments. The fund returned 145% on invested capital between its initial March launch and the December Regulation A raise.

However, not everything appears to be going as well since. Crypto-based assets, for example, have deteriorated sharply since their peak in 2021. Moreover, since the FTX collapse, the Securities and Exchange Commission (SEC) has been cracking down on the space. Furthermore, the raise is now in limbo, unable to receive investor funds since December 2021.

As of today, the SEC has officially shut it down, thus the fund won’t be progressing. In the most recent update, Republic stated that:

“Based on the feedback we received from the SEC as well as other regulatory events that have transpired since we began this process, we no longer see a path forward for this offering. Unfortunately, that means that as of now, the offering will be canceled…We are working on making the necessary adjustments to eventually bring a similar offering to market.”

While the fund’s performance is likely to have declined since its 2021 highs, the fund itself does not appear to be closing. Instead, the Regulation A offering will be terminated. Fortunately, it appears that the fund will continue in other forms, or that a similar offering will emerge.

With the increasing demand towards the crypto market, numerous different funding are available now meanwhile waiting for other forms of funding will be provided by the Republic; One of the example would be KXCO.

About KXCO.io

Under the name Knightsbridge, KXCO became one of Asia’s leading financial services companies with interests in Institutional investment, Private Equity, Capital Markets, Publishing, and Agriculture that span every continent of the world. We have unprecedented experience in Equities, Banking, Private Equity, Trading and Funds Management.

Managing and Protecting wealth is important, KXCO can show you and your clients how to realize profits and gain protection by utilizing the Global Markets.

To speak to a professional on Cryptocurrency, contact KXCO.IO.

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