Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
DatChat Inc (NASDAQ: DATS) stock price rallied 31.4% after announcing the launch of DatChat Social Network+, which expands on the existing DatChat messaging platform.
The social networking company revealed that the new platform has additional features, including content aggregation and discoverability, a verified influencer platform, social engagement and monetization tools, and an iMessage App with a screenshot protection feature.
Datchat faces stiff competition from other private messaging apps such as Telegram, which has over 550 million monthly active users (MAUs) and Signal, which boasts of 40 million MAUs’, yet Datchat has 22,572 MAUs at the end of August.
The company’s popularity among traders and investors was driven by its promise to incorporate blockchain technology into its platform, a term that was repeated multiple times in its IPO prospectus.
However, the company is yet to incorporate blockchain technology into its social networking platforms. Today’s announcement also did not mention if blockchain technology was finally part of Datchat’s platform.
Darin Myman, DatChat’s Founder and CEO, said: “We have the same right to privacy online that we all enjoy in our homes and with our friends in real life,”
“Two of our major initiatives right now are the continued expansion of the engineering team to accelerate platform development and the launch of our national marketing campaign to build brand awareness and acquire new users. Our new offices, located at 204 Neilson Street in New Brunswick, New Jersey, will provide us with the room to grow.”
Many analysts have faulted Datchat’s high valuation after it rallied from its IPO price of $4.15 on August 12 to a high of over $18, yet it still has no revenues to show since its founding in 2014.
The company relies on raising capital to run its operations, which is unlikely to change any time soon, raising questions about its current valuation of $170 million while trading at $8.56 per share.
Investors should be careful when investing in this stock despite today’s launch bringing monetisation capabilities to social media networks.
*This is not investment advice.
DatChat stock price.
DatChat stock price rallied 31.38% to trade at $9.88, rising from Wednesday’s closing price of $7.52.
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