Animoca Brands Refutes Claims of Metaverse Fund Cut and Valuation Drop
Animoca Brands, a venture capital firm and Web3 game developer has denied allegations that it reduced its metaverse fund target by $200 million, or 20%, to $800 million due to cryptocurrency market volatility and instability in the banking sector.
The company has also dismissed claims that its valuation has dropped from $6 billion in July 2022 to approximately $2 billion in March 2023.
Animoca announced a fund in November 2022 to support mid-to-late-stage start-ups with a metaverse focus. Cofounder Yat Siu stated that the target range was between $1 billion and $2 billion, depending on the amount of capital raised.
Animoca has clarified that $1 billion has always been within the declared range and that the amount raised for the fund is yet to be determined. While the firm acknowledges the impact of banking collapses in the United States, fundraising for the Animoca Capital fund is still underway.
Siu has noted that the anonymous sources behind the leaked information make verifying their agenda or accuracy difficult.
Animoca argues that its total valuation is not fully represented by its market cap of approximately $2 billion calculated from trading on unlisted exchanges, such as PrimaryMarkets, since the trading volume on such platforms is too low to provide price accuracy compared to an actual primary market.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
