According to an article by Reuters published on Friday that cited two persons with insight into the matter, non-fungible token (NFT) and gaming investment firm Animoca Brands has lowered the target for its metaverse fund by 20% to $800 million.
In November, Animoca Brands stated that it was putting together a new Animoca Capital fund with a $2 billion aim. However, in January, that target was cut in half to $1 billion. In addition, it has now reduced the aim by 20%.
Animoca Brands Affected by Crypto Winter Â
The decrease in valuation and reduction in fund-raising aim for Animoca show a shift in the cryptocurrency market as interest in such technologies has waned in the wake of the FTX crash as well as the bankruptcies and collapse of other major banks.
According to two other people, Animoca Brands was valued at about $6 billion after receiving $75 million in a financing round led by Singapore’s state-owned Temasek last July. However, it has recently seen its shares trade at a considerably lower pricing in secondary markets, with its market cap falling to under $2 billion.Â
Notably, in September, it had again raised $100 million from Temasek in a funding round. With the help of this fund, it strengthened its expansion strategy by making additional acquisitions.
The phrase “metaverse” refers to a virtual environment where the internet functions as an integrated setting for activities such as work, play, socializing, and experiencing events. Although there is a lot of excitement about its possibilities in certain sectors, the idea is yet mostly unproven.
Yat Siu, co-founder and CEO of Animoca Brands, shared his opinions on the much-discussed metaverse back in October of last year. Siu claims that major tech companies like Google, Facebook, and Apple control more than half of the revenue earned in the sector, leaving game makers and users with pitiful scraps.
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