Today has already been an interesting day, to say the least, for traders of Color Star Technology (NASDAQ:CSCW) stock. Apparently, Color Star is working to develop a “metaverse phone.” It will also be an eco-friendly phone, the company contends. As they tried to absorb Color Star’s metaverse phone concept, today’s traders bid up the company’s shares in the premarket hours, only to dump them by the time the opening bell rang.
Color Star Technology’s general business focus is to apply technology, including artificial intelligence (AI), in the entertainment industry. It’s a relatively tiny company with a market capitalization of slightly more than $9 million.
However, just because Color Star is small, this doesn’t mean that the company can’t dream big. Indeed, it’s a big dream — or maybe, a far-fetched one — to develop a metaverse phone with a pro-environment angle.
It’s a bit mysterious, really, as Color Star is reportedly collaborating with unspecified “leading international enterprises” to develop what’s to be known as the DONO metaverse phone. This smartphone will be “ESG-compliant” and “eco-friendly,” Color Star assures. It also touts the phone as “highly hack-resistant.”
What’s Happening With CSCW Stock?
Even though CSCW stock was in the green during today’s premarket hours, the shares dropped into the red by 9:30 a.m. Eastern. An hour and a half later, the stock was down a full 20%.
This is unusual price action — but then, we’re talking about an unusual phone here. According to the press release, the DONO phone will link users to the metaverse, “allowing easy access to limitless entertainment, collaboration, and education content via a tap of a finger.”
Furthermore, DONO phone owners will apparently “be among the first to experience new virtual locations, digital products, celebrity entertainment, and so on” through the smartphone’s pre-installed Color World app. It all sounds very futuristic, right?
Well, maybe not. It seems that today’s traders aren’t on board with Color Star’s vision for the DONO phone. After all, many smartphone users can already experience “virtual locations, digital products” and so on.
Most likely, CSCW stock are wondering what the DONO phone will specifically bring to the tech table. What’s really new about this particular “metaverse phone”? Color Star Technology will need to provide a satisfactory answer to this question. Otherwise, more share-price carnage could follow in the near future.
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On the date of publication, David Moadel 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.