Animoca Brands cuts metaverse fund target to $800M: Report

Hong Kong-based Animoca Brands, developer of blockchain gaming technology, has reportedly cut its Metaverse fund target by another 20% to $800 million, Reuters reportciting sources familiar with the matter.

The blockchain gaming technology company has reportedly scaled back its $1 billion target due to volatility in the crypto sector. The company had previously announced that he was working on his new Animoca Capital fund, which is targeting $2 billion in November 2022, but that goal will be halved to 10 by January 2023. Down to $100 million.

In a recent development, people familiar with the matter shared that the company has again slashed its target by another 20% to $800 million. Reuters said the source was not authorized to speak to the media and did not wish to be named.

After a Temasek-led funding round in July 2022, Animoca, previously valued at around $6 billion, has reportedly fallen below $2 billion in market capitalization, and its shares are trading on the secondary market. It trades at a fairly low valuation.

Declining funding targets and declining valuations indicate a shift in sentiment towards the crypto industry. Excitement about such technology has waned following scandals ranging from the collapse of FTX to the bankruptcies of several cryptocurrency lenders.

RELATED: GameFi Needs Wider Product Choices To Take Off, Says Animoca Brands CEO

In 2022, the Animoka brand was named the most funded metaverse developer by Nasdaq. Animoka has completed the most Metaverse deals in 2022, closing 15 deals and receiving over $564 million in funding.

Animoca, a prominent player in the metaverse industry, owns a majority stake in The Sandbox, a leading metaverse platform. Apart from this investment, the company is actively participating in the development of Non-Fungible Tokens (NFTs) and GameFi. GameFi is expected to become one of the major gateways for the general public to access the Metaverse, according to Yat Siu, one of Animoca’s co-founders.