Animoca Brands reduces Web3 fund collection target to $1B
Animoca Brands Corp seems less confident in its future Web3-based innovative projects amid the ongoing critical situation in the Crypto sector.
Animoca Brands Corp is a Hong Kong-based company, which is a blockchain game maker and venture capitalist. In 2022, this company planned to raise $2 billion in funds to push its future blockchain & Web3-based innovative projects.
Recently during a Bloomberg-hosted Twitter space discussion, Yat Siu, chairman at Animoca Brands, said that the company aimed to raise $1 billion in funds in the first quarter of 2023 and that funds will be used in the next generation of internet projects Web3.
Bloomberg reported that Animoca reduced its initial plan of $2 Billion fundraising, as market conditions are not much better because of the several incidents that happened in the Crypto market like FTX bankruptcy & further bankruptcy of multiple Crypto platforms as a part of bankruptcy chain reaction. Report noted that FTX’s bankruptcy resulted in several negative outcomes for Animoca’s investments, including the long-awaited non-fungible token (NFT) game, Star Atlas.
Animoca chairman said that despite multiple shocks from FTX bankruptcy, the majority of the Animoca subsidiaries are interested in the Crypto & blockchain sector and also they raised capital for this sector.
Initially when FTX collapsed & filed for bankruptcy in the US Court, then at that time Siu reportedly stated that FTX’s downfall was a big loss for institutional investors’ trust.
He said:
“The biggest damage with FTX was not so much financial (…) it was more of a reputational damage and an institutional damage, and in particular, an institutional American damage.”
After the FTX exchange downfall, the majority of the Crypto investors in this innovative sector are not confident to go with the centralised Crypto exchanges or any kind of centralised Crypto services and they are trying to find self-custody-based wallet services, to remain away from any kind of bitter situation.
Read also: US authorities decide to seize 56M Hood shares in FTX bankruptcy case
