Animoca Brands Adjusts Fund Goals
In light of the unpredictable nature of the cryptocurrency world, Hong Kong’s Animoca Brands has decided to trim its metaverse fund target yet again. Originally aiming for a lofty $2 billion, the company first cut its target in January 2023 to $1 billion, and now, it’s dialed it down another notch to $800 million. Talk about a rollercoaster ride!
The Roller Coaster of Valuation
Once riding high with a market capitalization of around $6 billion spurred by a financing round led by Temasek in July 2022, Animoca’s fortunes have taken a nosedive. Recent evaluations show its worth dropping to below $2 billion. Sources, who must remain unnamed due to their unauthorized status, confirmed the plummeting share prices in secondary markets.
Whispers of Market Sentiment
These revisions to the fund signals a broader shift in sentiment concerning the crypto sector. The thrill that once electrified the blockchain and metaverse industries is starting to dim. Major scandals, such as the notorious collapse of FTX and the bankruptcy of several crypto lenders, have stifled enthusiasm and confidence.
Animoca’s Historical Impact
In 2022, Animoca Brands was crowned the kingpin of metaverse developers by Nasdaq, sealing over 15 deals and raising a whopping $564 million. It’s no small feat! Holding a dominant stake in The Sandbox, among other endeavors, the company has cemented its role in the flourishing metaverse landscape.
The Future: GameFi and Accessing the Metaverse
Turning the limelight to GameFi, Yat Siu, a co-founder of Animoca, believes that this sector may serve as a crucial gateway for the general populace to dive into the metaverse. GameFi, which combines gaming and finance, could be the bridge that connects everyday users with the captivating, albeit tumultuous, realm of the blockchain.
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