Animoca Brands, a Non-fungible token (NFT) and gaming investor based in Hong Kong that specializes in blockchain technology, has scaled back its target for its “metaverse fund” by 20% to $800 million due to recent volatility in the cryptocurrency industry. This represents another reduction in the company’s ambitions.
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.
moreover, a source disclosed that 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 reduction in Animoca’s fundraising target and its declining valuation are indicative of a shift in sentiment within the crypto industry. The excitement surrounding such technologies has waned in the wake of a series of scandals, ranging from the collapse of the FTX exchange to the bankruptcy of several crypto lenders.
However, Despite the lowered expectations, the company remains optimistic about the potential of blockchain technology and its applications in gaming, NFTs, and DeFi.