Hong Kong-based Animoca Brands, a developer of blockchain gaming technology, reportedly lowered its target for its metaverse fund by an additional 20% to $800 million, Reuters reportedciting sources familiar with the matter.
The blockchain gaming technology firm reportedly lowered its $1 billion target due to volatility in the cryptocurrency sector. The company had previously announced in November 2022 that it was working on a new Animoca Capital Fund with a target of $2 billion but then halved that goal to $1 billion in January 2023.
In recent developments, people familiar with the matter shared that the company had once again lowered its target by another 20% to $800 million. Reuters shared that their sources preferred not to be named as they had not been authorized to speak to the media.
Two sources reportedly revealed to Reuters that Animoca's market capitalization, which was previously valued at roughly $6 billion following a Temasek-led funding round in July 2022, has fallen below $2 billion. , and its shares are trading at a considerably lower valuation on secondary markets.
The lowering of the fundraising target and declining valuation indicate a change in sentiment about the cryptocurrency industry, as excitement around such technologies has subsided following scandals ranging from the FTX collapse toward bankruptcy of several crypto lenders.
Related: GameFi needs a broader selection of products to get off the ground, says Animoca Brands CEO
In 2022, the Animoca brand was named most funded metaverse developer by Nasdaq, with Animoca having the most metaverse deals in 2022, closing 15 deals and receiving more than $564 million in financing.
Animoca, as a prominent player in the metaverse industry, has a majority stake in The Sandbox, a leading metaverse platform. In addition to this investment, the company has actively participated in the development non-fungible tokens (NFTs) and GameFi. According to Yat Siu, one of the co-founders of Animoca, GameFi is expected to become one of the main gateways for the general public to access the metaverse.
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