Hong Kong-based Animoca Brands, a developer of blockchain game technology, has reportedly cut its target for the metaverse fund by more than 20% to $800 million, Reuters reported citing sources familiar with the matter.
The blockchain gaming technology company has reportedly reduced its billion-dollar target due to volatility in the crypto sector. The company previously announced in November 2022 that it was working on a new Animoca Capital fund with a target of $2 billion but later reduced that target to $1 billion in January 2023.
In a recent development, people familiar with the matter indicated that the company has cut its target again by 20% to $800 million. Reuters indicated that the source was not named because it was not authorized to speak to the media.
Two sources told Reuters that Animoca’s market capitalization, which was previously valued at about $6 billion after a Temasek-led funding round in July 2022, had fallen below $2 billion, with its share price lower on the secondary market.
Reduced fundraising targets and falling valuations signal a shift in crypto industry sentiment, as excitement about the technology has waned following scandals ranging from the collapse of FTX to the bankruptcy of several crypto lenders.
Related: GameFi needs more product options, Animoca Brands CEO says
In 2022, Animoca Brand was named the most funded metaverse developer, according to a report by Nasdaq. The report stated that Animoca had the largest deal in 2022, closing 15 deals and raising more than $564 million in funding.
Animoca, an important player in the metaverse industry, holds a majority stake in one of the metaverse platforms called The Sandbox. In addition to this investment, the company has been actively involved in the development of nonfungible tokens (NFTs) and GameFi. According to Yat Siu, one of the founders of Animoca, GameFi is expected to be one of the main gateways for the general public to access the metaverse.