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A Story on SPACs and How Far They’ve Crashed and Burned

SPAC; Bad Investments?
Written by Andy

The most popular SPACs of 2022…and how far they’ve crashed and burned.

SPACs – Where are they now?

A special purpose acquisition company (SPAC) is basically a publicly traded company created for the express purpose of acquiring or merging with an existing company. So how does a SPAC differ from an IPO? In an IPO, a private company issues new shares and, with the help of brokers, sells them on a public exchange. In a SPAC transaction, the private company becomes publicly traded by merging with a listed shell company—the special-purpose acquisition company (SPAC).

It’s been a while since we’ve seen Chamath pumping SPACs, so where are they now? If you’ve invested in these you’ve probably become a bag-holder long-term investor waiting for the rebound… After a 60-90% drop you are now hoping for the shares in most of these stocks to bounce anywhere between 100 to 1,000% to the upside just to break even. Incredible. Even a famous portfolio manager like Bill Ackman was forced to liquidate Pershing Square’s SPAC, PSTH. Times are tough.

So what were the most popular SPACs from 2022 and how did they perform? We’ll get into it right now and then keep reading below to check out the list from 2021, it’s even more shocking.

Top Spacs of 2022

You’ve probably never heard about most of these names, and potentially for good reason since many on the list aren’t even profitable. Are SPACs just a means to transfer wealth from retail investors to execs and early investors? A classic pump’n’dump? It may seem that way.

Somehow, what’s even more shocking is the list from some of the most popular SPACs from 2021. These were all promised to be “the next best thing” and have ended up severely rotten leaving (retail) investors with a bad taste in their mouth. I’m not sure if SPACs will ever make a come-back to be honest, confidence has been lost.

Without further ado, the 2021 list of popular SPACs and where they are now. Unbelievable many of them require an 800% return to claw their way back to former glory. SPACS as a whole turned out to be terrible investments for 2021 and 2022.

SPAC Disasters

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Andy

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