Metaverse Fund of $2 Billion Reduced to $800 Million by Animoca Brands
- The firm has just reduced the objective by a further 20% to $800 million.
- By January, the goal had been cut to $1 billion from the initial $2 billion figure.
According to those acquainted with the situation, Hong Kong-based blockchain game firm Animoca Brands has scaled down its plans by another 20%, lowering its objective for its so-called metaverse fund to $800 million.
In November, Animoca Brands announced that it was planning a new $2 billion Animoca Capital fund. But by January, the goal had been cut to $1 billion. According to two sources with knowledge of the situation. It has just reduced the objective by a further 20% to $800 million.
Animoca Brands was valued at over $6 billion during a fundraising round spearheaded by Singapore’s Temasek last July. But its market worth has since dropped to around $2 billion, according to two additional individuals familiar with the matter as per a Reuters report.
Interest of Investors Waning
The company’s stock, which was traded on the Sydney Stock Exchange until 2020, is currently traded on the private secondary market PrimaryMarkets. The platform’s most up-to-date information shows that the company’s market valuation was about $1.26 billion at the beginning of the week, or slightly under $1.9 billion in Australian dollars.
Furthermore, a representative from Animoca Brands was unwilling to discuss the company’s upcoming fundraising efforts. He acknowledged that the firm was aware that its shares were being sold at a discount on PrimaryMarkets. But argued that the platform was not an accurate valuation tool.
Moreover, after the collapse of the FTX exchange and the bankruptcies of numerous crypto lenders. The enthusiasm for these technologies has waned, and Animoca has reduced its fundraising goal and value accordingly.
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