Animoca Brands Sets the Record Straight on Fund and Valuation Rumors

Clear as Mud: The Metaverse Fund Controversy

Animoca Brands, the bustling venture capital firm and Web3 game developer, has taken a bold stand against rumors swirling around its metaverse fund target. Reports indicated that the firm had slashed its goal by $200 million, down to $800 million amid the crypto market’s choppy waters and shaky banks. But hold your horses, folks, Animoca is saying ‘not so fast’!

Unpacking the Claims

According to a March 24 Reuters report, which cited anonymous sources, Animoca supposedly chopped its initial $2 billion target for its metaverse fund in half back in January, only to make a second cut this month. The fund, launched in November 2022 to focus on mid-to-late-stage metaverse startups, now allegedly resembles a pinata – swinging precariously in the wind.

Animoca Responds with Clarity

In a statement shared with Cointelegraph, Animoca co-founder Yat Siu did some serious clarifying. “The fund target has a range of between $1 billion and $2 billion,” he explained, like a professor correcting a student’s misguided math. “The claim that we’ve officially cut it down to $1 billion is a misinterpretation. This range has been consistent all along.”

The Impact of Financial Fumbles

While Animoca was quick to dismiss the $200 million rumor, they did concede that the ongoing banking crises and the infamous FTX debacle have shaken the venture capital landscape. Despite these bumps in the road, Siu assured the market that fundraising efforts for the Animoca Capital fund are still rolling along, undeterred.

The Valuation Tug-of-War

Now, let’s talk numbers. Animoca also appears to be involved in another valuation punch-up. A Reuters article suggested its value had plummeted from around $6 billion to a mere $2 billion since July 2022. Animoca, however, is waving a red flag, claiming those numbers also miss the mark.

Trading Tales

Animoca’s trading history adds another layer to the valuation fog. Initially listed on the ASX until a delisting back in March 2020 due to rules violations in the crypto sphere, the company’s shares have since found themselves on less reputable platforms like PrimaryMarkets. The firm has been keen to highlight that these platforms do not represent an accurate reflection of its value, pointing to the lack of trading activity as a major culprit.

Final Thoughts from the CEO

In a conversation that wandered into innovation, Siu emphasized that traditional game companies don’t always lead the charge in creativity. As the conversation danced around the topic of Web3 and new gaming developments, he remarked, “It makes it difficult to ascertain exactly who or what the sources and agenda are when rumors swirl.” And there you have it, folks – Animoca Brands remains steadfast in its quest for clarity in a tumultuous market.