Animoca Brands has reportedly cut its target for its metaverse fund by a further 20% to $800 million
A billion dollar aim was apparently cut back by the blockchain gaming technology startup because of the turbulence in the cryptocurrency market.
Prior to cutting that aim in half to $1 billion in January 2023, the business had earlier announced in November 2022 that it was working on a new Animoca Capital fund with a target of $2 billion.
Recent developments revealed that the corporation has again decreased its aim by another 20% to $800 million, according to those acquainted with the situation. Animoca’s market capitalization, which was previously estimated at about $6 billion following a Temasek-led financing round in July 2022, has reportedly dropped to below $2 billion, with its shares trading at a significantly lower valuation in secondary markets, according to two sources who spoke to Reuters.
A shift in opinion about the cryptocurrency business is indicated by the reduced fundraising goal and falling valuation, as interest in such technologies has waned as a result of scandals ranging from FTX’s demise to the insolvency of multiple crypto lenders. With 15 closed metaverse deals in 2022 and more than $564 million in capital, Animoca Brand was declared the most financially supported metaverse developer by Nasdaq.
A significant player in the metaverse market, Animoca owns the bulk of The Sandbox, one of the top metaverse platforms. The corporation has actively contributed to the development of GameFi and nonfungible tokens (NFTs) in addition to this investment.
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