YYAI Stock Collapses 93% as Rebrand to AiRWA Fails to Impress Investors
The company's strategic pivot to Web3, despite a touted $100 million investment, was met with extreme market skepticism and a massive sell-off.
Shares of AiRWA Inc. (NASDAQ: YYAI), formerly known as Connexa Sports Technologies Inc., plummeted over 92% in a dramatic market rejection of the company's rebranding and strategic pivot to the Web3 sector. The catastrophic drop occurred despite the company's announcement of a major new venture and a significant investment aimed at reinventing its business.
On Tuesday, the company unveiled its new identity as AiRWA Inc. and its plans to launch the AiRWA Exchange, a platform for trading tokenized real-world assets. The move was backed by what the company described as a , which included a notable $30 million in Solana (SOL) tokens. The stated goal is to leverage blockchain technology to revolutionize trading by offering tokenized versions of U.S. equities.
The market's reaction, however, was swift and brutal. Instead of embracing the forward-looking strategy, investors fled the stock, erasing nearly all of its value in a single session. The sell-off suggests deep-seated skepticism regarding the company's ability to execute such an ambitious pivot, particularly given its history of financial instability and high share price volatility. The elevated trading volume accompanying the price collapse indicated a strong consensus among investors that the move carried substantial risk.
According to company statements, the AiRWA Exchange aims to build on the Solana blockchain, citing its efficiency and low transaction fees as key advantages. The company even announced it had , a core component of its new business model. Chairman Hongyu Zhou framed the transition as a foundational step toward a decentralized financial ecosystem.
However, these ambitious plans failed to reassure investors. The market appears to have focused on the significant execution hurdles and the company's checkered past rather than the potential of the Web3 venture. The 92.8% collapse serves as a stark reminder that even with significant funding and a buzzworthy strategy, a company cannot easily shed its reputation. For AiRWA Inc., the path to winning back market confidence will be a steep and challenging one, requiring tangible results that go far beyond press releases and rebranding efforts.