Hong Kong-based blockchain gaming technology developer Animoca Brands has lowered its metaverse fund target by a further 20% to $800 million, Reuters reported, citing people familiar with the matter.
The blockchain gaming technology company has reportedly scaled back its billion-dollar goal due to volatility in the crypto industry. The company previously announced in November 2022 that it was preparing a new Animoca Capital fund with a target of $2 billion, but then halved that target to $1 billion in January 2023.
In the latest development, the company lowered its target again by 20% to $800 million, according to people familiar with the matter. Reuters said its sources spoke on condition of anonymity because they were not authorized to speak to the media.
Animoca's market capitalization, valued at around $6 billion in July 2022 following a funding round led by Temasek in July 2022, has fallen below $2 billion, two sources reportedly told Reuters. The market is trading at much lower valuations. Lower fundraising targets and lower valuations point to a change in sentiment in the crypto industry, as excitement over such technologies has waned in the wake of scandals ranging from the FTX debacle to the bankruptcy of several crypto lenders.
Animoca Brand was named the most funded Metaverse developer by Nasdaq in 2022, Animoca has the most Metaverse deals in 2022, closing 15 deals and securing over $564 million in funding. Animoca, as a key player in the Metaverse industry, holds a majority stake in The Sandbox, a leading Metaverse platform. In addition to this investment, the company is also actively involved in the development of non-fungible tokens (NFTs) and GameFi. According to Xiao Yi, one of the co-founders of Animoca, GameFi is expected to become one of the main entrances for the public to enter the Metaverse.
