NFT Investor Animoca Brand Reduces Metaverse Target to $800 Million from $2 Billion:
Animoca Brands is the market’s foremost NFT investor and game developer. Since 2018, the company has made it a point to begin active investment and acquisition of startups and projects relating to Non-fungible Tokens (NFTs). Animoca is considered an active NFT investor with a diverse portfolio. It is the brain behind the strategic acquisition of startups, intellectual property, and developing and publishing NFT-related games. The company was initially working on the Sand Box project, whose market cap was estimated to be about $2 billion until the company reduced it significantly. The sections below analyze the reasons for such a reduction and the likely effects on NFT marketplaces and transactions.
What are the details of Animoca Reduction of Metaverse Target?
The Animoca Brands have been working on a metaverse platform called the Sandbox. Beforehand, Animoca had set a tentative marketplace evaluation for Sandbox at $2 billion by the end of last year. However, the company has recently adjusted its estimate to $800 million. Experts have opined that the significant drop in marketplace estimation stems from the recent volatility plaguing the cryptocurrency and blockchain space. The crypto market has experienced a series of downturns and scandals that have left many wondering about its relative opportunity cost. Many have pulled out from several cryptocurrency ventures.
Additionally, the Sandbox is a novel project. Combined with the fact that metaverse projects are still in the developing stage with significantly lower global adoption, the drop in marketplace estimation by Animoca is not surprising. It is expected that it may take longer for a metaverse platform like Sandbox to steal the show with significant market valuations.
What are the Likely Effects of Animoca Reduction of Metaverse Target
Although unexpected, the reduction in the market price of Sandbox was the smartest thing to do given the climate of Web 3.0 technology in recent times. It should not be a setback as the current market cap is still high, weighing $800 million. This reduction is indicative of a significant potential for the Sandbox project. Also, Animoca has constantly indicated its commitment to developing and expanding Sandbox’s abilities. It has partnered with several developers and instituted several NFT sales and other related blockchain initiatives.
As with many ventures, it starts outcomes with uncertainties and rethinking decisions. However, if there is anything Animoca Brands has going for it, then its dedication to the development of the NFT industry through its platform, Sandbox. The success of the project and partnerships with other brands show that is much leeway for growth in the NFT industry for Animoca and if it continues trending this path, then it may just revalue its current estimation on a higher side.