My Comment (and thoughts) on Jeremy Frommer's recent article

Author's Notes: This article was originally commented on Jeremy Frommer's article "Vocal's Path Forward: Pioneering Change with Reg CF." The comment was placed around the date of 26 July 2023, Wednesday. Information and opinions placed in this article are subject to be incongruent with current the time's due said dates of commenting, publication, and viewership.

Warning! What You are about to read is not to be considered as financial advice! Investing involves significant risk. To quote "Form 424B3 Creatd, Inc." "Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of the Prospectus or this prospectus supplement. Any representation to the contrary is a criminal offense."

In other words, I'm trying to say, "Please don't sue me because You went and made a financially risky decision based upon what I have written down. I am not legally (nor financially) responsible for Your actions, thoughts, decisions, choices, etc."

*Cracks Knuckles*

Now, on with the show.

I will admit, I do not know the term "Regulation Crowdfunding." In all honesty it does remind me of crowd funding for like "Go Fund Me" that people would put up for projects such as films and even those who require necessary finances for medical purposes. When You use the words "Regulation Crowdfunding" are You referring to investors being able to purchase VOCL stock, or are You referring to donations that the company can rely upon to meet its financial goals? One would be purchasing a stock(s) of the VOCL Creatd Inc. company and owning it, and the other would be donating money to it, in the hopes that it survives. Hence my confusion.

I always wonder why You write VOCL as $VOCL. It perplexes me. When I head to Google and I search it I find OTCMKTS: VOCL. When I open up my brokerage account(s) the stock is just listed as VOCL. Are You trying to imply that there is a different ticker symbol that investors should be looking for if they wish to invest in Creatd Inc? If I recall correctly You did mention that the OG Collection would become its own separate entity apart from VOCL and its flagship product, please correct me if I am wrong.

On a different note, I must say that I was surprised that the price has increased in capital only to fall marginally, but proceeded to rise yet again. It really seems that Your Twitter livestream must've garnered a lot of attention. My question is, did it garner enough attention? As an investor who knows that VOCL does have official accounts for Twitter, TikTok, and Instagram I would like to see the company have an official YouTube account. If we're to be generous to Twitter and assume that every account isn't a bot, spam, or multiple account from a singular person, its users would account for 5% of the world's population (give or take). A lot of people would need to have a Twitter account, and this same rule applies to Instagram and TikTok (at least if You want to continue swiping after somebody shared You something). Yet, when it comes to YouTube You don't need to have an account just to consume content deemed appropriate for the general population.

Now, onto numbers. Hopefully these are correct. Please correct me if I am wrong.

From "Form 424B3 Creatd, Inc." I found this.

The company has "21,133,750 Shares of Common Stock."

If I were to multiple that by today's current price we'd end up with

21,133,750 × $0.05 = $1,056,687.50

Now, by using this quote here, "By raising up to $5 million in capital through a Reg CF campaign, we plan to improving the company's financial position and long-term viability."

Which would mean that if we were to reverse the math.

5,000,000 ÷ 21133750 = $0.236589 (I rounded that number off).

This would mean that for Creatd Inc to reach that number the stock price would have to increase more than 4× its current price.

If we're to say that an investor would want to own 1% of the company. Which would be around 211,337.5 shares (which should be rounded up to 211,338) at today's current price of the estimated $0.05 one would need to invest $10,566.875 -> $10,566.90.

Now, investing has risk. It doesn't matter whether it's a stock, bond, CD, ETF, etc. Banks have closed, companies have gone bankrupt, etc. etc. Even VOO took a big hit during the Covid-19 pandemic. Apologies for my lack of computing skills, but I'm unable to do the math for how many shares would need to be purchased in order for the stock to reach its price of, oh let's say $0.25.

Let's try to simplify this and round up and down as needed for cushioning.

Let's say VOCL needs $4 million dollars from investors. Let's say the investors are investing $11,000.00 each.

$4,000,000 ÷ $11,000 = 363.6364 -> 364 investors would be needed.

Yet, $10,000 is a pricey amount. That might be the amount that most people have stored or saved up in a savings account or in their 401k or Roth IRA for retirement. In which sense, they'd probably rather choose an ETF like VOO at a certain date where it's more aggressive as they start out and more conservative as they begin to age, or if they work for a company that has publicly traded stock, they'd rather hold onto that, especially if it has a dividend. Common stocks that have dividends, for example, would include companies such as Coco-Cola, Walmart, or even Johnson & Johnson.

So, let's break the amount of initial investment down to something even smaller, if not more manageable.

$4,000,000 ÷ $1,000 = 4,000 investors would be needed. Each investor would receive 20,000 shares at the price of $0.05.

$4,000,000 ÷ $100 = 40,000 investors needed. Each investor would receive 2,000 shares at the price of $0.05.

In 2022, it was estimated that 158 million Americans were employed. So, in the grand scheme of things getting 0.02531646% of the working U.S. population to invest $100.00 each sounds very plausible. Yet, how many people, Americans and World Wide, know about VOCL/Created Inc? And how many know where to find VOCL's common stock, let alone being able to purchase it? Some brokerage companies will only allow the selling of common shares that are being withheld, no longer allowing them to be bought. Other brokerage companies allow the stock to be bought, but with a transaction fee in place. So, in a sense, that average investor might have to spend $110.00 just to own $100.00 of VOCL common stock.

Here's a silly idea. VOCL gives out cash rewards to creators that's credited in their wallets and them sent through Stripe to their bank accounts. What if VOCL gave the option to reward accredited creators with VOCL's common stock? With no reverse stock splitting or dilution in play, would that allow VOCL to reach their financial goal of $5,000,000 a lot quicker, or am I just kicking a dead horse here and providing a thought that's too complicated in practice (especially with the amount of spam bot and fake accounts)? Instead of dilution, they would focus on distribution. It would be similar to an employee stock purchase plan, with the only exception being that the Vocal creators wouldn't be Vocal employees. Now also imagine if Vocal creators had the power to choose which percentage of stock vs. cash they would want to receive from their reads, challenge rewards, top stories, etc. Instead of getting $5.00 for a top story, somebody might choose to receive 50% of the typical top story reward, $2.50, and then receive $2.50 in Vocal stock, VOCL. The choice would be entirely up to the Creator to enroll in such a hypothetical program, but the default would be that a Vocal creator would receive all monetary rewards, benefits, etc. as cash, until they make formal changes into how they desire to be compensated.

Either way, Your article is an interesting, if not a perplexing read. Thank You, Jeremy, or should I say, Mr. Frommer.