Friday, September 29, 2023

Target for Metaverse Fund cut to $800M by Animoca Brands

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Key Points

  • Animoca Brands is a Hong Kong based company. For its metaverse fund, the company has reduced its fund target, which now stands at $800 million.
  • The sentiment towards the cryptocurrency industry is transforming and the valuation has also declined. But, still, Animoca Brands stays a major player. Its valuation has boosted, powered by large investments in sequence.
  • Animoca Brands stays a prominent force in the light of its prior expertise and investments. This is despite the scaling back of the ambitious plans that the company earlier had in place to create a metaverse based on the blockchain technology. 

Animoca Brands had, in November 2022 announced that they were working towards a new metaverse fund with a target of $2 billion. But, then, in January 2023, they halved down on that target.

Let us start by knowing a little bit more about metaverse. Metaverse is best defined as a virtual world where the existance of the internet is in the form of an immersive place. In the metaverse, the internet may be used for work, socializing, play, experiences, and events. 

It cannot be denied that metaverse has proven to be a center of excitement across several quarters. But, to date, the concept is unproven. 

If we discuss Animoca Brands, this one’s a company based in Hong Kong, and they are into developing the blockchain gaming technology. As per the reports received to date, Animoca Brands has reduced its target for metaverse by 20% further still. The target now stands at $800 million. These reports have been received from sources familiar with the matter.

Animoca Brands has specified that cryptocurrency market is volatile, and the same is the factor why they have scaled down on the billion dollar target that they had initially defined. In January 2023, it should be noted that the target stood at $1 billion.

Now that was not the only reduction in the target. Instead, two reductions have already taken place. The first was a reduction of $1 billion, which saw the target stand at $1 billion from $2 billion. In the second reduction, the target was further slashed by 20%. So, the target finally stood at 800 million, from the starting point of $1 billion.

The sources that have shared this information do not preferrred to be name. This information has been shared on the condition of anonymity. The underlying reason for the same is that the sources are not authorized to discuss these matters with the media.

Not one, but two sources have disclosed these matters before the media. Another noteworthy fact is that Animoca’s market capitalization, which earlier stood at $6 billion, has now fallen to $2 billion. The underlying reason for the same is the financing round led by Temasek which took place in July 2022. 

In secondary markets, shares of Animoca Brands are trading at remarkably lower valuation than they earlier used to do.

Sentiment in the crypto industry is dynamic

The fundraising target has decreased while the valuation signal is also declining. So, a change in the cryptocurrency sentiment is not hard to see. One of the prime reasons why we are getting to observe this sentiment is the scandals that we come to know of in the cryptocurrency sector. These scandals impact several people and entice many more to not invest in cryptocurrencies. 

Among the most noteworthy of such scandals are the bankruptcy of numerous crypto lenders and the collapse of FTX. Similarly, Signature and Silvergate, which used to be the crypto-friendly banks, have also shut down. It is easy to see that the crypto industry is experiencing winter which shows little signs of thawing.

It was in 2022 that NASDAQ had named Animoca Brands as the most funded metaverse developer. Animoca Brands, then, used to have the maximum metaverse deals. Uponclosing 15 deals, the company received $564 million in funding. 

Animoca now trades its shares on PrimaryMarkets. PrimaryMarkets is a private secondary share trading platform. Across the recent times, the company’s market cap stood just below 1.9 billion Australian dollars, which is equivalent 1.26 billion USD.

Across the metaverse hemisphere, Animoca is a prominent player. The company enjoys a majority stake in The Sandbox, which is one of the top metaverse platforms. Beynd this investment, the company is also an active participant in developing GameFi and Non Fungible Tokens (NFTs).

Yat Siu is one of the co-founders of Animoca. As per Siu, across the years to come, for access to the metaverse, GameFi will become one of the general public’s most important gateways. Siu had earlier said that the Animoca had invested in 380 companies; OpenSea and Axie Infinity were herein included. This was to craeate a metaverse around blockchain technology.

Animoca has specified that it is hard to deny that on the available venture capital, banking crisis and the collapse of FTX have had serious impacts. Nevertheless, Animoca Capital fund is still in progress. Animoca plans inform its progress to the market, including the fund’s size, but at an appropriate time. This will be when the raise concludes.

Animoca Brands is an investment fund worth pondering

Through current times, a host of NFT projects are in the phase of active development. As we perceive this rise, it is not easy to ignore the support and assistance that crypto investment funds are providing. Among these investment funds as well, Animoca Brands is among the ones that are most prominent.

In mid-2021, play to earn became one of the important money-making trends. This used to be the time of the pandemic. Even more, people were quitting their jobs, dramatically so. 

Correspondingly, fresh revenue-making opportunities opened up for many people, such as the ones who run the play-to-win games. Animoca Brands is also an upshot of this tendency. 

Animoca Brands is primarily an investment firm whose core focus areas lie in Gaming, NFT, and Metaverse. The company has offices and subsidies in a host of different countries, including United States, Korea, Finland, Canada, Germany, Argentina, and Australia.

#PUSH #bitcoinhindi #bitcoinupdate #cryptonews

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