As anticipation brews ahead of its metaverse app launch, Color Star Technology Co., Ltd. (Nasdaq: CSCW) has been gaining a lot of momentum. Through its two fully-owned subsidiaries – Color China Entertainment Ltd. and CACM Group NY, Inc. – CSCW focuses on providing music and entertainment performance education to aspiring entertainers in the US and China. While it is currently trending downwards, investors are bullish CSCW stock could see a reversal with the anticipated release of its metaverse app launch.
CSCW Stock News
CSCW is well-known for offering premium online courses taught by global celebrity instructors including Shaquille O’Neal, Steve Aoki and David Villa. From music and sports to painting and television, the company has over 6 categories catered to different users in the entertainment world. Aside from courses, the company offers users celebrity concert videos and interactive artist communication services – both of which had a notable positive impact on engagement.
Currently, CSCW is on investors’ watchlist after announcing a $16 million private placement with its largest shareholder – Hou Sing International Business, Ltd. (HSIB) – at a “100% premium to the current share price”. This placement demonstrates HSBI’s belief in the company’s growth potential despite the negative impact of the ongoing global pandemic.
The company intends to use gross proceeds from this placement to develop its core operations and focus on launching the “entertainment world metaverse” through its Color Star app. Designed to include 3D scenes where users can interact together virtually, the updated app will be CSCW’s key entrance into the metaverse industry.
The company intends to develop its app to host a variety of virtual activities as well as enhance engagement. To do that, CSCW is creating an integrated social model that combines virtual and real scenes and allows users to conduct business meetings or social gatherings in different places such as – virtual restaurants, hotels, concert halls, and coffee shops. Additionally, registered users can create avatars, start a business and develop properties to sell.
To ensure the successful launch of the app, CSCW recently set up a research laboratory in Dubai – one that is solely focused on developing metaverse products. CSCW’s CEO Basil Wilson is bullish on the company’s efforts saying: “we have been continuously developing and innovating in the areas of entertainment technology.” Instead of simply following the trend, CSCW is well-known for “utilizing advanced technologies to make the entertainment industry more diverse and enjoyable.” In light of the company’s dedication to providing global users with better experiences, investors are anticipating the launch of the app could generate significant value.
Pursuant to the launch, CSCW intends to constantly update and expand the app to ensure it is in line with users’ ever changing interests. The company, along with its partners, have already outlined various areas that will require excessive R&D. In fact, the company has plans to launch scenarios in the form of an NFT – which users are allowed to obtain as a personalized collection. To allow users to embrace their virtual self within the Color Star world, CSCW provides NFT owners naming rights to the particular scene application that they purchase.
As anticipation brews for the launch on the 28th, CSCW announced that – alongside the application – it is releasing a software token – Color World. Designed to be used solely in the Color World App, these tokens allow users to spend, purchase goods, and recharge games – ultimately creating a real life-like scenario. To incentivize users, the tokens can be purchased or earned as rewards of winning games or showcasing talent such – in turn allowing users to become “tycoons” in CSCW’s virtual world.
While users around the world already have access to a beta version of the Color World app, CSCW has assured investors that this only the initial phase and that it is currently in the process of launching the newest version. Even though the current version is only a beta app, it already has over 300 thousand registered users and many are projecting over 500,000 users before EOM – a bullish sign on the app’s growth potential.
In light of these efforts, it is no surprise 2021 was a year of tremendous financial growth for CSCW with almost $6.8 million in revenues and $2.6 million in gross profits – up from zero revenues and profits in 2020. Taking into consideration its upcoming plans, CSCW is projecting even more growth this year. While the company is currently focusing its resources on the metaverse app launch, it has plans to resume live concerts – which could revive its offline entertainment business and facilitate further growth.
Media Sentiment
Investor @Brown_chickHB is bullish on CSCW thanks to its upcoming metaverse app and all the functions it offers.
Technical Analysis
CSCW stock is currently trading at $.4145 with a weak support at .382. The stock shows a primary resistance around .4691 and a secondary resistance at .5104. Although MACD is bearish, it could be heading for a reversal soon. Accumulation is seeing an uptick following a steady downward trend. Similarly, the RSI is at 42 and continues to trend upwards after being extremely oversold on the 24th.
These indicators highlight investors’ anticipation of the metaverse app launch. Even though the stock was oversold recently and the MACD was bearish, the indicators are seeing an evident reversal with accumulation increasing. This is mostly because many investors are bullish the launch could send the stock to its September run up of $1.2 or higher.
CSCW Stock Forecast
With millions in revenues, a $16 million pipeline and ventures into the lucrative metaverse industry, CSCW stock could be extremely undervalued at the moment. In light of its efforts and its upcoming plans, the company has the potential to become one of the hottest stocks in 2022. With this in mind, investors are increasingly securing positions its dip price before a catalyst sends it on a run. Given that the stock is well-positioned to trade at the dollar mark or higher following its metaverse app launch, CSCW could be a profitable investment.
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