Animoca Brands, a Hong Kong-based blockchain gaming company, has been an active investor in NFT, blockchain gaming, and metaverse-focused firms. However, due to market volatility affecting the crypto industry, Animoca Brands has scaled down its initiative in metaverse.
The company’s metaverse fund Animoca Capital, which was launched in November 2020 with an initial target of roughly $2 billion, was later reduced to $1 billion. According to Reuters, the latest report states that Animoca Brands has reduced its target further by 20%, bringing it down to $800 million, representing a 60% reduction from the original target.
- The aim of the fund is to focus on digital property rights, while providing opportunities for accessing Web3 companies, according to Animoca’s co-founder and executive chairman Yat Siu in a previous interview.
- With no geographical restrictions, the fund provides a good entry point for Web3 businesses and investors, allowing them to capitalize on blockchain technology and enabling the purchase and trade of digital assets through NFTs in a metaverse ecosystem.
- Animoca Brands has already invested in over 380 companies, including well-known ones such as Axie Infinity and OpenSea, with the goal of building a blockchain-based metaverse.
- Last summer, Animoca Brands received a $100 million investment from Singapore state-owned Temasek, which the company used through convertible bonds to deploy capital.