Gaming giant Animoca Brands expects to rake in a reduced target of $1 billion this quarter. This fund will be used for investments in Web 3.0 and metaverse.
The goal is a deviation from the $2 billion pledge made in November.
Web 3.0 funding fits the fragile market
Animoca’s CEO had previously revealed to Nikkei that the company intended to establish a $2 billion fund. In particular, it was in collaboration with former Morgan Stanley executive Homer Sun.
The ambition was to go global while supporting mid to late stage Web 3.0 startups.
The cut was mainly due to the collapse of FTX and losses in the crypto market. Beyond the general decline of the market, around a dozen Animoca portfolio companies bore the brunt of the collapse, according to co-founder and chairman Yat Siu. This includes the Star Atlas starship game, the treasure of which was mostly on FTX.
the game studio Solana-based Star Atlas he had previously revealed that the FTX accident cost him half of his cash flow.
Siu also stated that Animoca Capital is in talks with potential investors and will use the funds to promote new companies of blockchain and metaverse. Although the executive said Animoca Capital’s target is the first quarter, the market will decide the direction.
He also agreed that a fragile market could eventually result in slightly lower fundraising targets.
Complicated gaming market after FTX implosion
There are still issues to deal with beyond the general negative sentiment in the sector. Many people still consider that the niches of Play-to-Earnplay to own, GameFi and NFT are too complex.
The industry widely agrees that Web 3.0 games are not very intuitive to potential gamers. According to a survey, only 52% of popular players are not familiar with Web 3.0 gaming terminology.
However, regarding the funding figures for 2022, Animoca Brands has remained among the top projects focused on Web 3.0.
The platform revealed that Temasek, Boyu Capital and GGVCapital were among the investors who contributed about $544 million cumulatively in 2022. He said the funding fuels his efforts to create a OpenMetaverse and provide Internet users with access to digital property rights.
Also, according to Nasdaq, Animoca Brands also executed the most metaverse deals in 2022. These agreements spanned support organizations, open metaverse platforms, and Web 3.0 game producers.
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