The company has decided to scale back its initial goal in order to mitigate potential risks and ensure a more stable investment strategy.
Animoca Brands, a Hong Kong-based blockchain gaming technology developer, had announced plans to launch a new Animoca Capital fund with a target of $2 billion in November 2022. However, due to the volatility in the crypto sector, the target was halved to $1 billion in January 2023, and then again reduced by another 20% to $800 million, according to sources cited by Reuters.
Animoca's market capitalization, which was previously valued at $6 billion, has fallen below $2 billion, with its shares trading at a considerably lower valuation in secondary markets.
Despite the challenges faced by the company, Animoca remains a key player in the blockchain gaming technology industry. As the most funded metaverse developer, having closed 15 deals and received over $564 million in funding in 2022, Animoca holds a majority stake in The Sandbox, a leading metaverse platform.
Additionally, the company has been actively involved in the development of nonfungible tokens (NFTs) and GameFi, which is expected to become one of the main gateways for the general public to access the metaverse, according to one of Animoca's co-founders, Yat Siu.
The shift in sentiment in the crypto industry can be attributed to a series of scandals, including the collapse of FTX and the bankruptcy of several crypto lenders. However, Animoca's innovative solutions have garnered significant attention and investment, and it continues to push the boundaries of what is possible in the metaverse. As the crypto sector continues to evolve, it will be interesting to see how Animoca adapts and thrives in this dynamic landscape.
In conclusion, Animoca Brands had initially set a lofty goal for its new Animoca Capital fund but had to revise its target due to market conditions. Despite the challenges faced by the company, Animoca remains a prominent player in the metaverse development space and continues to lead the way in the rapidly-evolving world of blockchain gaming technology.
Also read - 24 Hrs Crypto Update, Mar 24: Crypto market is experiencing a significant downturn
