With growing interest in blockchain-based apps, DatChat Inc. (NASDAQ:DATS) has been breaking headway in developing its privacy-oriented messaging app. After announcing a new metaverse advertising platform, DATS has been getting on many investors’ radars – surging over 90%. With many investors believing that the new platform could be revolutionary, DATS has the potential to be one of the best social media stocks this quarter.
DATS Stock News
*Written October 13th, 2021
DATS went public recently in order to accumulate the capital it needs to proceed with its business plan which includes a blockchain-enabled messaging service as a subscription service for enterprise users. Additional features will also be made available to users through in-app purchases.
While there are big competitors in the market of privacy-oriented messaging apps such as Snapchat and Telegram which have 100s of millions of users, DATS has been gaining attention for its orientation towards blockchain. This separates DATS from other social media stocks and shows its potential to become a major player once the platform is hosted on blockchain.
DATS is currently a favorite among investors interested in blockchain and crypto but attention spiked after @realwillmeade tweeted shared that DATS is a potential short squeeze candidate with a short interest of 49.79%.
But DATS is more than just hype, the company’s messaging app provides users with a number of security features such as an anti-screenshot mechanism and automatically deleted messages. It even integrates with existing platforms such as Apple’s iMessage, which dramatically increases its number of potential users. While its features are appealing in a world of security breaches and data privacy issues, the company only has 22,572 monthly active users and DATS has yet to monetize its users to generate revenue.
However, the company awarded a $1 million managed services contract to IZEA Worldwide, Inc. (NASDAQ: IZEA) which will execute a celebrity influencer campaign for DatChat Messenger. DATS has also finalized an agreement with Barstool Sports, a digital media company that produces content focused on sports and pop culture. According to the agreement, Barstool Sports will launch a multi-channel, national marketing campaign for DatChat Messenger across its brand and select franchises. If successful, these two campaigns could take DATS to the next level and grow its user base significantly.
Despite no official statements from either company, there is speculation among investors that DATS could be a potential buyout candidate for Microsoft. Facebook’s failed attempt to acquire Discord earlier this year is likely driving this speculation but if these rumors come to fruition, some are predicting a $50 PPS. Social media stocks are major players and the potential for DATS to develop itself and become acquired is a possibility although one that will likely take some time.
*Updated March 28th
DATS has received a lot of attention among investors after announcing its new VenVūū metaverse advertising and NFT monetization platform. Through this platform, metaverse landowners will be able to monetize their assets by paid ad-campaigns. Moreover, brands will be able to run campaigns through the NFT advertising network across several metaverses at the same time.
In this way, landowners will link their plots with the VenVūū protocol and opt in to campaigns offered by advertisers. Considering that there are over 268 thousand land plots in the “Big Four” metaverses, DATS is well-positioned to capitalize on this growing industry and achieve growth in its revenues.
Although the campaigns will initially contain video and static ads only, DATS has plans to expand its ad campaigns in 2022 to include 3D images and virtual product placements. As minting begins on April 26th, many investors expect DATS to soar following the release of the new platform.
To further support its blockchain capabilities, DATS received a notice of allowance from the USPTO for “Blockchain-Based Communication Systems and Methods”. This patent includes a blockchain-based communication platform, micro-blockchains for P2P secure communications, as well as a digital rights management engine. Given that the patent also includes controlling messages after being sent out, DATS is set to have a competitive advantage due to the privacy features in its patented technology.
On that note, DATS has signed an LOI to acquire Avila Security Corporation for $1 million and the greater of 739 thousand shares or $2.5 million worth of shares. This acquisition includes four issued patents as well as two pending patents. In light of this, DATS will be able to expand its IP to include blockchain-based digital rights management and object sharing technology.
Excited about the potential of this acquisition, CEO Darin Myman believes “we will be able to leverage new revenue opportunities from both the licensing and development of this technology.” and “this acquisition will bolster our position as a significant player in Web 3.0 and Metaverse eCommerce, advertising and messaging”.
To achieve this, DATS appointed Gianfranco Lopane as Head of Business Development. With over 15 years of experience, Lopane has led Fortune 500 and international companies’ sales and business development programs. Before joining DATS, Lopane developed blockchain consulting strategies and created marketing campaigns for NFT audiences at Generigo.
Given that the interest in NFTs and blockchain technology is rapidly growing, DATS is well-positioned to capitalize on this interest with its revolutionary metaverse advertising platform. With the new platform set to launch in the near future, many investors are bullish DATS will have another run upon the launch of the platform – making it one of the social media stocks to watch this quarter.
Media Sentiment
@RealtorStarShar is excited about DATS’ major run after launching its new metaverse platform.
Technical Analysis
Following a massive spike, DATS is currently trading at $2.44 and shows a main support at 1.68. The stock shows a main resistance at 2.68 as well as a secondary resistance at 3.11. After announcing the new metaverse platform, accumulation has surged massively. While the MACD is bullish, it is approaching a bearish crossover. At the same time, the RSI has cooled off at 56 after being overbought at 91.
Given that there is a gap near the support level, DATS has the potential for a steep downward trend to fill the gap. This could be supported by a Triple Top pattern on the 5 minute chart signaling a drop in DATS’ PPS. If the stock retests its support, bullish investors could find a good entry point to add to their positions before a potential surge upon launching DATS’ new platform.
Following DATS’ massive 90% surge, many investors preferred to sell for profit-taking. Given that the RSI is cooling off and the MACD is approaching a bearish crossover, DATS could retest its support to fill the gap. With growing interest in the company’s metaverse platform, DATS could be one of the best social media stocks and have a similar run after launching the new platform.
DATS Stock Forecast
As the company continues to develop its blockchain-based messaging app and the imminent release of the new metaverse advertising platform, DATS has the potential to emerge as a leader in the blockchain-based apps sector. With a new patent on the way and the acquisition of Avila and its patents, DATS could be set for another run when it receives the patents. Considering that investors are bullish on the company’s potential, DATS could be one of the social media stocks to watch this quarter.
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