By George Ward
Recent reports citing anonymous sources noted that Animoca Brands, a company specializing in blockchain games, has lowered its metaverse fund target from $1 billion to $800 million.
Did Animoca Brands Scale Back Its Metaverse Fund Target?
As a result of the instability in the cryptocurrency industry, the blockchain gaming technology firm has allegedly reduced its billion-dollar objective. In November 2022, the firm announced its plans to create a new Animoca Capital fund with a $2 billion goal, which it allegedly reduced to $1 billion at the beginning of 2023.
According to anonymous insiders, the firm has recently decreased its goal by an additional 20% to $800 million. Per reports, two insiders revealed that Animoca’s market capitalization has plummeted from about $6 billion, attained after a Temasek-led financing round last July, to less than $2 billion.
Additionally, its stocks are trading at a lower valuation in secondary markets. The decline in fundraising objectives and decreased valuation suggest a shift in perception towards the cryptocurrency industry.
Besides, the hype surrounding these technologies has waned due to various scandals and bankruptcies plaguing the crypto sector. Notable among them are the November FTX collapse, the insolvency of multiple cryptocurrency lenders, and the bank crisis of several crypto-friendly banks.
Animoca Brand Denies Accusations
Meanwhile, Animoca Brands has denied reducing its metaverse fund target by 20%, or $200 million. Animoca Brands also dismissed the notion that its valuation has dropped from $6 billion last July to approximately $2 billion this month.
According to a statement credited to the firm, Animoca clarified that the claim of reducing the Animoca Capital fund target to $1 billion is inaccurate. However, the company agreed that the bank crises in the US have certainly affected its operations.
Still, it emphasized that they have not yet determined the exact amount raised for the fund. The firm’s statement further read:
“It is undeniable that both the FTX saga and current banking crises in the US have severely affected the accessibility of venture capital. Nonetheless, we are still raising funds for the Animoca Capital fund. Once the fundraising is completed, we will provide the market with relevant information, including the actual amount of the fund.”
Despite the latest rumors, Animoca Brand recorded several achievements in 2022. Last year, Animoca Brand received recognition as the top metaverse developer in terms of funding by Nasdaq.
They achieved this by closing 15 metaverse deals, the highest number of deals in the industry, and raising over $564 million.