It’s certainly a tough market to go public right now. Amid a sea of red, Cryptyde (NASDAQ:TYDE) began trading today. Unfortunately for investors in Cryptyde, this debut proved to outpace the losses of the broader market by a great margin, with TYDE stock dropping more than 60% in afternoon trading.
That’s certainly not ideal. Indeed, a great deal of investor interest heading into this launch was notable. That’s partly because this was a spinoff from Vinco Ventures (NASDAQ:BBIG), which carried out the distribution of TYDE shares to its shareholders yesterday.
Notably, Vinco Ventures is up slightly on this launch. Many investors in Vinco may certainly be looking to capitalize on this distribution, via selling their TYDE stock to buy more BBIG.
With that said, let’s dive into seven things investors may want to know about the Cryptyde spinoff.
What to Know About TYDE Stock
- Cryptyde is a conglomerate of Web 3.0 business focused on growth areas in the crypto market.
- Accordingly, the company’s business model focuses on leveraging the growth of blockchain technology, smart contracts and NFTs.
- Cryptyde will function like Vinco, holding and acquiring relevant companies in the space.
- For instance, its regulatory filings say it will have a hand in crypto mining equipment.
- This spinoff of Cryptyde was initially announced last year, when crypto prices were booming.
- Accordingly, this distribution to Vinco shareholders came as valuations have come down in the sector.
- Now, investors are struggling to value this standalone company, providing a significant haircut. Amid a rout in crypto prices, valuing Web 3.0 businesses has become much more difficult.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.