Animoca first announced its plans for the fund in November with a $2 billion goal. This goal was later cut in half to $1 billion.
NFT) and gaming investor Animoca Brands has cut the goal for its metaverse fund by 20%, to $800 million, Reuters reported on Friday, citing two people with knowledge of the situation.
When Animoca first stated about its plans for the fund in November, its goal was $2 billion. This was cut in half, to $1 billion, in January.
The company was worth about $6 billion after it raised $75 million in July. Still, a story quoting two more sources says that its market value on secondary markets has dropped below $2 billion.
The metaverse is a simulated world where the internet is used as a place to work, play, socialize, have adventures, and hold events. Even though some people are very excited about its possibilities, the idea is still mostly unknown.
Consequently, appetite for metaverse-related investments may have waned in recent months, as the broader digital asset industry’s winter has shown few signs of thawing, as evidenced by the demise of cryptocurrency exchange FTX in November and crypto-friendly banks Silvergate and Signature this month.