Non-fungible token (NFT) and gaming investor Animoca Brands has reduced the target for its metaverse fund by 20% to $800 million, Reuters reported on Friday, citing two people familiar with the matter.
When Animoca initially unveiled its plans for the fund last November, its target was $2 billion. This was then cut in half to $1 billion in January.
The firm was valued at almost $6 billion following a $75 million fundraise last July. However, its market cap in secondary markets has slipped below $2 billion, according to the report, citing two other people.
The metaverse is a term for a virtual world where the internet exists as an immersive space that can be used for work, play, socializing, experiences and events. While there is much excitement about its potential in some quarters, it remains a largely unproven concept.
As such, appetite for metaverse-related investment may have taken a hit in recent months as the broader digital asset industry’s winter has shown little signs of thawing, from the collapse of cryptocurrency exchange FTX in November to those of crypto-friendly banks Silvergate and Signature this month.
Animoca did not immediately respond to CoinDesk’s request for comment.
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