On May 21, professional esports player and FaZe Clan co-owner Matthew “Nadeshot” Haag took to Twitter to share his thoughts on the recent collapse of FaZe Clan’s stock price. Nadeshot said that the stock price collapse was a “terrible thing” for esports. Let’s take a look at what happened and why it is so important for the industry.
In April 2021, FaZe Clan announced its Initial Public Offering (IPO) through the special purpose acquisition company (SPAC) called Thrive Capital Exploration Corp. The SPAC was valued at $2 billion prior to the IPO. Following the IPO, shares of the company were trading around $24 per share – up from $10 per share before the offering. However, by mid-May, shares had dropped as low as $7 per share – a nearly 70% decline in just over one month.
Professional esports player, Nadeshot, has recently weighed in on the stock price collapse of FaZe Clan. Using his platform to speak out on the issue, Nadeshot discussed how early investors have been the ones to suffer the greatest losses and that he himself had not invested any of his money in FaZe at the time. He also emphasized that while he believes FaZe Clan’s worth is still extremely high and their future is bright, it’s important to always remember to act wisely when investing. With millions of viewers tuning in to watch his broadcasts, this message has certainly resonated loudly with fans everywhere as they stand side by side with Nadeshot and his opinion on the current situation at FaZe Clan.
Why is this Important for Esports?
The dramatic drop in FaZe Clan’s stock price sent shockwaves throughout the esports community and has raised questions about whether or not it will have an effect on other companies looking to go public via a SPAC. According to Nadeshot, this collapse could have a negative effect on how investors view investing in esports companies overall. He believes that if potential investors are put off by this event then “it could be really detrimental to our industry”. Furthermore, he believes that it is up to other prominent figures in esports such as himself to prove that investing in esports can still be profitable despite this setback.
Professional eSports athlete and CEO of 100 Thieves Nadeshot weighed in on the recent collapse of the stock price of FaZe Clan, the gaming and entertainment organization with which he’s associated. He stated that the company has taken a number of steps over the past few months to bring its finances into order, including reducing expenses while searching for outside capital ahead of any eventual offering. While disappointed by the decline in stock price, Nadeshot is optimistic that FaZe Clan’s efforts will result in a successful long-term outcome not just for himself, but also for all other investors who have faith in their brand. With transparency and consistent financial decisions at its core, Nadeshot believesFaZe Clan can eventually regain its footing as a gaming and entertainment behemoth.
Nadeshot’s comments highlight just how important it is for those involved with esports to be aware of events such as these and how they can potentially affect investor confidence in their industry. As more companies look towards going public via SPACs, it will be crucial for professionals like Nadeshot and others within esports to ensure that investors are aware of both potential risks and rewards associated with investing in their sector. This will help ensure that investments continue flowing into esports even after a hiccup like FaZe Clan’s stock price collapse.