Animoca Brands, a leading investor in NFT, blockchain gaming, and metaverse-focused firms, has reportedly scaled down its metaverse fund by 20% in response to the volatility in the crypto sector.
The Hong Kong-based company’s Animoca Capital fund was launched last November with a target of around $2 billion, which was later halved to $1 billion. However, due to the uncertain market conditions, Animoca Brands has now reduced the target to $800 million, marking a 60% decrease from the initial goal.
Despite the cutbacks, Animoca Capital’s main focus remains on digital property rights while providing access to Web3 companies. The company has invested in over 380 firms, including prominent players such as Axie Infinity and OpenSea. The vision is to create a metaverse based on blockchain technology that will allow users to purchase and trade digital assets in the form of NFTs.
In an earlier interview, Yat Siu, Animoca’s co-founder and executive chairman, noted that the fund’s goal is to serve as a gateway for Web3 companies and investors with no geographic limitations. However, due to the crypto market’s unpredictability, Animoca Brands has decided to downsize its ambitions.
Last summer, Animoca raised $100 million in a funding round from Singapore state-owned Temasek, which was deployed through convertible bonds. The company’s ultimate objective is to create a metaverse that allows users to own and trade virtual assets, including NFTs. Although scaling back the metaverse fund’s target may impact Animoca’s plans to develop the virtual world, the company is still dedicated to its vision.
The metaverse, a virtual environment where users can interact with each other, has gained popularity in recent years, with many companies investing in the technology. Nevertheless, the crypto sector’s volatility has hindered metaverse development, and many businesses have had to adjust their plans accordingly.
Animoca Brands’ decision to reduce the metaverse fund’s target by 20% is a response to the crypto sector’s volatility. Nonetheless, the company remains committed to its vision of developing a metaverse based on blockchain technology that allows users to own and trade virtual assets. While the reduction in the fund’s target may affect Animoca’s metaverse plans, the company is still working to make its vision a reality.
