The leading developer of blockchain games, Animoca Brands, has announced plans to reduce the capital fund by 20%. In 2022, the company allocated $2 billion to develop an Animoca Capital fund to transform the gaming industry.
Following the current crypto market uncertainty, the Animoca team has reconsidered reducing the amount to $1 billion in January. After a prolonged debate, the Animoca team planned to reduce the metaverse fund to $800 million.
Significance of Animoca Capital Fund
A report shared by people privy to the matter argued that the Animoca team has been invested heavily in the metaverse sector. In 2022, the gaming company completed 15 metaverse projects worth more than $564 million.
Recently, the Animoca brand was ranked among the best-performing company in metaverse projects. Reportedly, the firm owns a significant market share of Sandbox.
The company has also ventured into the development of digital collectibles and GameFi. A statement from Animoca co-founder Yat Siu revealed that the firm is targeting to dominate the metaverse space.
Siu stated that the attempt to acquire a considerable share in the metaverse industry had prompted the firm to prioritize developing the GameFi products. In 2022 the Hong Kong-based gaming company generated $100 million from a funding round led by Temasek-led, pushing the firm valuation to $6 billion.
The funds were used to fund the development of new products and expansion to new markets. A recent report from the Animoca team revealed that the prolonged crypto winter had prompted the company value to slide to $2 million.
Following the undesirable decline in firm value the team lamented that the Bahamian crypto exchange FTX’s fallout triggered the company valuation to establish a dribbling momentum.