Animoca Brands Refutes Reports it is Reducing its Metaverse Funds

Yat Siu, the CEO of Hong Kong-based mobile gaming firm, Animoca Brands, has denied a recent report that it is cutting back on Metaverse funding by 20%($200 million).

The gaming company also refuted claims that its valuation had fallen from $6 billion in July 2022 to about $2 billion in March 2023.

In December, the CEO of Animoca, Yat Siu announced that the company intends to form a fund to invest in startups operating in the Metaverse. At the time, the CEO stated that the funds will be targeted at $1 billion- 2 billion, depending on how much capital it can raise.

However, a recent report has been published with claims that Animoca has reduced its set target for the Metaverse funding to $800 million and reduced its valuation. Some individuals familiar with the matter cited unstable market conditions due to banks’ collapse for the reduced valuation and fundraising.

Subsequently, Animoca has disclosed in an official statement, that the idea that the Animoca Capital fund target was reduced from $2 billion to $1 billion is untrue, as $1 billion has always been within the range.

In regards to the material that was leaked, Siu stated that since the information’s origins were not identified, it is difficult to ascertain the motives behind the reports. However, Animoca Brands said that the data mentioned in relation to the company’s valuation by Reuters and the “two other” unnamed sources were incorrect.

Impact of Banks’ Collapse on Animoca

While Animoca has denied reports that it has reduced its Metaverse funding target, the company acknowledges that the failure of three major banks in the United States has had an impact. However, Animoca did not specify the extent of the damage.

“The FTX and banking crisis has undoubtedly had a significant influence on the amount of venture capital available, but the Animoca Capital fund is still actively raising money. When the raising is finished, we will provide the market with the necessary information, including the final size of this fund,” the company said.

Notably, other crypto firms that have announced exposures in the collapsed Signature Bank include Circle, Paxos, and Celsius.