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Is DatChat IPO (DATS) share a buy? • Benzinga

Would you like to buy an IPO? Sofi Active Invest allows you to participate in upcoming initial public offerings before they are traded on an exchange.

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DATS

DatChat $ 3.93 Buy stocks

Since the invention of the blockchain, many investors have embraced the concept of decentralized financial applications or the ability to conduct transactions and business processes without the need for a third party intermediary. But not everyone is happy, especially the Internal Revenue Service. Last year, the tax authorities offered a $ 1.25 million bounty to anyone who can crack the anonymous foundations of the Monero blockchain.

However, this heightened concern begs a question: what if anonymity can help improve society? That is the ethos of the communications software company DatChat and its most recent initial public offering (IPO).

When is DatChat’s IPO date?

On August 12, 2021, DatChat listed its initial public offering – consisting of 2.89 million common A shares and Series A warrants to purchase those common shares – at $ 4.15 per unit. Before the deduction of subscription discounts, commissions and other costs related to the IPO, the offering had reported gross proceeds of approximately $ 12 million.

The following day of the IPO calendar, DatChat entered the public market, with its shares trading on the Nasdaq under the ticker symbol DATS. EF Hutton, a division of privately held Benchmark Investments, LLC, acted as lead bookrunning manager. Tiger Securities also acted as joint bookrunning manager.

Although August was a relatively slow month in terms of new listings, DatChat debuted during a hectic day with 20 companies pricing their IPOs in global markets. In addition, the first public session – which happened to be on Friday the 13th.

Still, DatChat made up some of its previous losses on day two, closing at $ 3.78, up 10.5% from its start on Friday. With an eventful series of trades, DATS stock reminded investors that buying new issues at their original offering price is not always beneficial. If so, buying shares at the original $ 4.15 at the end of August 16 would have made you a 9% loss.

With some public debuts, being able to choose which offers to take part in – a luxury institutional investors typically don’t get when they choose to buy pre-IPO stock – more than makes up for missing out on early bird prices Opportunities.

DatChat Financial History

There are two key businesses behind DatChat’s long-term opportunities in the digital ecosystem. First, the communications software company offers flagship applications, DatChat Privacy Platform and Private Encrypted Social Network, both of which enable private users and commercial customers to communicate with others while maintaining complete privacy and control over the lifetime of distributed content – including deletion messages already sent.

Such a modularity in the communication stream could be a game changer for DATS stocks. As any digital etiquette expert will advise, email should be checked carefully before hitting the send button. Like a bullet fired from a gun, once an email is posted on the World Wide Web, you cannot retract it.

In very few cases with serious consequences, an unintentional distribution of messages can only lead to red faces. But too often, incorrect email or other content promoted social harm. In 2019, for example, the University of South Florida St. Petersburg falsely sent 430 admission emails to applicants anxiously awaiting an official decision.

In other cases, companies may mistakenly distribute marketing material that contains incorrect pricing data or other misleading information. As a result, such mistakes can lead to costly corrections and reputational damage.

The second central business under the DatChat brand is the development of a blockchain-based, decentralized communication platform. With this protocol, clients at the corporate level can communicate directly with their customers without an administrator facilitating the transmission of messages between sender and recipient.

Again, this breakdown represents a tremendous revenue opportunity for DatChat. As the Pew Research Center reported in November 2019, a majority of Americans are concerned about their online activity data collection and its potential use. Hence, it is not unreasonable to assume that DatChat will have a robust addressable market.

However, potential investors should be aware that DatChat is a pre-revenue company according to the IPO prospectus. Additionally, with very limited monthly active users, the company’s investment thesis relies on a narrative that may not add up.

DatChat potential

In 2015, ABC News reported the story of Adam Smith, a former CFO of a medical device manufacturer, who lost his job after protesting Chick-Fil-A’s stance on LGBTQ + issues with a fast food restaurant employee . Unfortunately for Smith, the video of that encounter he filmed went viral, leading to stiff public condemnation for bullying.

Soon Smith’s company gave him the ax when the company was inundated with threatening voicemails. Despite a public apology, Smith was unable to find another job, so infamous was the incident that was broadcast. Eventually, as reported by ABC News, the former corporate executive was limited to feeding his family with food stamps.

Surely Smith made a huge mistake in disregarding the Chick-Fil-A staff member – and he would be the first to tell you. At some point, however, multiple penalties for a single failure do more harm than good.

First, the fallibility of humanity and the virtue of extending grace underscores diverse religious and spiritual beliefs. Even Harvard Health Publishing wrote an inspiring article on the “power of forgiveness” citing health benefits such as “reduced depression, anxiety and hostility.” Riding around about past illnesses denies everyone involved access to mental health and wellbeing.

Second, a CareerBuilder survey found that “34% of employers found content online that led them to reprimand or fire an employee”. In extreme cases, the termination of valuable employees due to non-professional behavior means unnecessary economic hardship.

It is quite possible that judgment has already become a sport in society. Therefore, it becomes of crucial importance to maintain full control over our communications – also and especially after we have sent them – and thereby strengthen the potential of DatChat.

How to buy DatChat IPO (DATS) stocks

As primary market transactions, IPOs allow institutional investors to purchase new shares in financial institutions. While this privileged class ranks first on a startup company’s equity units, finishing first isn’t always an advantage, as the debut of DATS stock demonstrated.

Likewise, the open purchase in a secondary market transaction is not exclusively disadvantageous. At times, Wall Street can be irrationally bearish, creating opportunities for regular retail buyers.

Waiting for new stocks to trade on an exchange allows for a straightforward approach. If you already know how to buy stocks, you can jump right in. If not, just follow the steps below.

Step 1: choose a broker.

Thanks to the growing popularity of personal investing, competitive dynamics forced brokers to standardize key financial incentives such as commission-free trading. Hence, you can choose a platform that suits your needs. Below is a list of the best brokers to narrow down your choices.

Step 2: decide how many shares you want.

IPOs are risky because they are usually volatile and unpredictable. To effectively manage this risk, you should choose a balanced number of proportions that will give you solid rewards if your bet goes right, but mitigate the downside if it doesn’t.

Step 3: Choose your order type.

Before admission, familiarize yourself with these market concepts.

  • Bid: The maximum price a buyer will offer, the bid is always lower than the letter.
  • Ask: The minimum price a seller accepts is always higher than the bid.
  • Spread: Essentially the difference between the bid and ask price, the spread also signals market liquidity and risk. Tighter spreads mean higher liquidity and lower risk, while the opposite is true for wider spreads.
  • Limit order: You can trade stocks at a certain price through limit orders. This approach offers price transparency, but no execution guarantees.
  • Market organization: Conversely, you can guarantee fulfillment through market orders, but only at the current rate, which can fluctuate considerably at the time the order is placed.
  • Stop-loss order: As a defensive instrument for your portfolio, a stop-loss order will automatically exit your position at either a predetermined price or a lower price.
  • Stop limit order: In contrast, stop-limit orders are only executed at a predetermined price, which guarantees complete control over your automated exits. However, such orders carry the same risk of default as limit orders.

Step 4: execute your trade.

To execute a market order, do the following:

  1. Choose your type of action (buy or sell).
  2. Enter the stocks you want to buy (or sell).
  3. Click the Buy (or Sell) button.

Follow the same sequence for limit orders (but include your execution price).

DATS Restrictions for Retail Investors

Before engaging in any IPO, consult the Financial Industry Regulatory Authority (FINRA) regulations on restricted persons. In short, you cannot benefit unfairly from privileged information.

DATS pre-IPO

Certain platforms such as ClickIPO allow you to purchase pre-IPO shares (or new issues at the original offering price) from selected companies before they debut. You should check ClickIPO for any upcoming offers that you are interested in.

Everybody makes mistakes. Unfortunately, social media can be a cruel place as it acts as a judge, jury and executioner for individual “crimes” over the long term. However, by implementing control over users’ messaging streams and removing third party oversight on communications networks, DatChat is restoring privacy and dignity in the digital realm.

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