Despite a relatively choppy performance from the stock market on Monday, there were a few notable exceptions in terms of big winners. For the most part, the companies that did the best were primarily meme stocks. This included the likes AMC (NYSE: AMC), which was up significantly over the course of the day, although several other meme stock candidates were up as well. One of the best-performing of which included a small-cap tech firm called DatChat (NASDAQ: DATS), which surged after announcing an NFT platform that would allow ads on the metaverse.
The company said it opened pre-sale registration for its new VenVuu Dynamic NFT Content system. VenVuu is the company’s advertising platform that would let people who own property in the metaverse connect using DatChat’s patented interface technology. Additionally, metaverse users would be able to monetize their holdings with paid ad campaigns that advertisers can offer them on the platform.
“We believe this to be a landmark moment for the Metaverse, as it is the first simple solution allowing users to monetize their metaverse parcels while enabling brands a broad reach in the metaverse,” said DatChat CEO Darin Myman in an official press release. “Not only will this create unique opportunities for supporters of DatChat, but will also be a significant contributor to our Company’s ability to grow our top-line.”
Although all of this is still largely theoretical, as is most things when it comes to the metaverse, that didn’t stop investors from reacting to the news with excitement. As one of the hottest new trends and buzzwords, traders are typically willing to buy up anything that’s connected to the metaverse, especially for a small-cap company like DatChat with just a $50 million valuation.
Shares were up around 61.5% over the course of the day, although pre-market trading on Tuesday is already down by 8.5%. While the announcement was certainly the primary catalyst for this price jump, traders were already on edge as AMC and GameStop (NYSE: GME) jumped as well. Most likely, shares will see a significant selloff on Tuesday as the same traders lock in their gains.
Since going public in late 2021, DatChat has seen a dramatic surge in valuation surrounding the time of Facebook’s Meta announcement. Since then, however, shares have quickly plummeted. Most analysts remain skeptical about the company, especially as it’s not generating any revenue as of yet.
Other stocks making waves on Monday included online computer part reseller NewEgg (NASDAQ: NEGG). Shares were up over 46.5% as well today, largely due to its association with the broader meme stock ecosystem. The e-commerce company is also one of the few online retailers accepting alternative cryptocurrencies for payment, something which has helped make it stand out from other competitors.
DatChat Company Profile
DatChat Inc is a communication software company. It is focused on its mobile messaging application that provides a traditional messaging platform while providing users with complete privacy and control features for their sent messages. Its mobile messaging application is called DatChat Messenger which is a free messaging application. – Warrior Trading News
