Animoca Brands Cuts Target for Metaverse Fund by 20%Hong Kong-based Animoca Brands, a developer of blockchain gaming technology, has reportedly reduced its target for its metaverse fund by 20% to $800 million due to volatility in the crypto sector. The company had initially announced that it was working on a new Animoca Capital fund with a target of $2 billion back in November 2022, before reducing it to $1 billion in January 2023.
Two sources familiar with the matter have now disclosed that Animoca Brands has lowered its target yet again by another 20% to $800 million. According to the sources, Animoca’s market capitalization, which previously stood at around $6 billion following a Temasek-led financing round in July 2022, has since plummeted to below $2 billion. The company’s shares have also seen a significant decline in the valuation of secondary markets.
The decline in fundraising and valuation of the crypto industry signals a shift in sentiment following a period of scandals, including the collapse of FTX and the bankruptcy of many crypto lenders. However, Animoca Brand emerged as one of the most funded metaverse developers in 2022, according to a report by Nasdaq.
The company closed 15 deals with over $564 million in funding, cementing its position as a key player in the industry. Moreover, Animoca holds majority stakes in one of the leading metaverse platforms called The Sandbox and is actively involved with nonfungible tokens (NFTs) and GameFi. Yat Siu, the co-founder of Animoca Brands, has expressed that GameFi will be the major gateway for people to gain access to the metaverse.
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