Meanwhile, the SEC targets cryptocurrency.
Today is Wednesday, August 4, 2021.
Metaverse Startups Try Equity Crowdfunding
RiseAngle, an immersive gaming company that is also working on non-fungible token (NFT) games, is launching an equity crowdfunding campaign on September 15. There’s also a ‘Friends Invest First’ round that is already underway on the platform Wefunder.
This company falls into the category of the metaverse, a term that means the sum of all experiences in the digital and virtual worlds. This includes virtual reality providers.
Here’s a list of past and present equity crowdfunding campaigns in this space:
Business: Tocca, a company focused on business virtual events, launched an equity crowdfunding campaign on Wefunder in July.
Gaming: AEXLAB, a virtual reality technology studio, launched an equity crowdfunding campaign on StartEngine in July.
Shopping: Performlive, a commerce platform that includes augmented reality shopping, launched a crowdfunding campaign on Republic in July.
Let's Rewind: MyndVR, a health care virtual reality company, completed a $166,000 equity crowdfunding round in April.
Final Thoughts: As more metaverse startups launch, there will likely be more equity crowdfunding campaigns in this industry.
Notable Earnings Today: Etsy (Nasdaq: ETSY), General Motors (NYSE: GM), Uber Technologies (NYSE: UBER), Booking Holdings (Nasdaq: BKNG), Kraft Heinz (Nasdaq: KHC), Electronic Arts (Nasdaq: EA), MGM Resorts International (NYSE: MGM), CVS Health (NYSE: CVS)
Notable IPOs Today: Better Being Co. LLC (NYSE: BBCO)
Notable Equity Crowdfunding Campaigns Ending Today: Two Beagles Distilling (MainVest), Tilton Brothers Brewing (MainVest), Serene Drops (MainVest), The Dawg Haus (MainVest)
SEC Chair Want To Regulate Crypto
Securities and Exchange Commission Chairman Gary Gensler asked Congress on Tuesday for authority to regulate the cryptocurrency market. He also called cryptocurrency an asset class filled with “fraud, scams and abuse.”
The Numbers: Gensler’s comment plunged prices of Bitcoin, Ethereum and XRP more than 3% on Tuesday. The price of Cardano ticked up 1%.
Let's Rewind: A few days ago, the U.S. Senate proposed an infrastructure bill that included taxes on certain crypto platforms. That news pushed cryptocurrency prices lower.
Bigger Picture: Cryptocurrency has historically avoided government oversight. Some in crypto are concerned that government intervention could push prices down.
Silver Lining: On the other hand, more government policy adds legitimacy to digital currency.
Final Thoughts: It’s too soon to draw conclusions based on these recent developments.
Retail In Focus As Consumers Take On More Debt
U.S. household debt increased in the second quarter by $313 billion, or 2.1%, the Federal Reserve Bank of New York disclosed Tuesday. It’s the largest increase in over seven years.
More Data: The personal savings rate is also close to pre-pandemic levels, according to the Federal Reserve Bank of St. Louis.
Context: A big reason for the increase in consumer debt and decreased savings is credit card spending. Retail businesses could benefit from this extra spending, which presents an opportunity for investors.
Retail Boom: On Tuesday, Under Armour (NYSE: UAA) and Ralph Lauren (NYSE: RL) both posted excellent earnings reports from the second quarter. Stocks for both companies also increased over 6%.
Looking Ahead: Walmart (NYSE: WMT), Target (NYSE: TGT), Macy’s (NYSE: M) and Kohl’s (NYSE: KSS) are among the retail stocks that are scheduled to post earnings later in August.
Final Thoughts: Fears from the Delta variant could possibly stymie retail expectations.
Trends To Watch
Meme Trading App Pulls Through: Robinhood spikes 24%, holds well above IPO price (Yahoo! Finance)
Good for Crypto: Wells Fargo Starts Offering Crypto Investments to Clients (Bitcoin News)
Crowded Field: CrowdProperty Closes Seedrs Offering, Raises Over £1.8 million (Crowdfund Insider)
Not a Good Match: Match Stock Falls As Earnings Miss Amid Acquisition, Higher Investments (Investor’s Business Daily)
We Have Lyft Off: Lyft revenue grows 125% from last year (CNBC)
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