tl;dr
Animoca Brands' valuation has dropped by over 75% in the last two years, with its secondary shares now trading at $1.5 billion, down from $5.9 billion in July 2022. Despite reporting $3.3 billion in crypto, cash, and equities in the first quarter of 2024, the company's current valuation remains low....
Animoca Brands' valuation has plummeted by over 75% in the past two years, now trading at $1.5 billion, raising concerns about the NFT market's slowdown.
Despite valuation concerns, Animoca has reported $3.3 billion in crypto, cash, and equities, considering an IPO, and has partnered with Lamborghini for NFT market expansion.
Animoca Brands' valuation has dropped by over 75% in the last two years, with its secondary shares now trading at $1.5 billion, down from $5.9 billion in July 2022. Despite reporting $3.3 billion in crypto, cash, and equities in the first quarter of 2024, the company's current valuation remains low. This significant correction may be linked to the NFT market slowdown, where Animoca has a presence. Nonetheless, the company is contemplating an IPO and has recently partnered with luxury car maker Lamborghini to enhance engagement in the NFT market.
Crypto conglomerate Animoca Brands has seen its valuation tank by more than 75% in the last two years, according to latest reports. The secondary shares of the company are trading at only $1.5 billion in valuations as of now, a significant drop from the $5.9 billion valuation claimed back in July 2022.
WHAT’S BEHIND THE ANIMOCA VALUATION DROP
Concerns regarding the valuation drop in Animoca Brands have skyrocketed recently! However, during the first quarter financial results ending March, the firm reported a total of $3.3 billion in crypto, cash, and equities. advertisement Despite this, investors in the secondary market seem to be unimpressed as the shares of the firm are trading at $1.5 billion valuation said Animoca executive Chairman Yat Siu. This is a staggering 75% drop from the company’s valuations back in July 2022, when it raised a total of $75 million at $5.9 billion valuation. Siu’s estimate of Animoca’s current trading value aligns with Bulletin’s data, which gathers information on crypto companies from brokers and trading platforms. One of the major reasons behind this steep correction could be the major slowdown in the NFT market, where Animoca has some stronghold. Although the crypto market recovered from the crash in 2022, the NFT space hasn’t. While the NFT trading volumes in January 2022 were around $6 billion, it has now dropped to $430 million in July 2024.
PARTNERSHIP WITH LAMBORGHINI
Despite all the headwinds, Animoca Brands continues to pursue its goals in the NFT market. It has recently announced a partnership with Italy-based luxury car automaker Lamborghini to “drive automotive brand engagement”. In its official blog post, Animoca said that this collaboration will bring together the expertise of both companies to create “unique experiences for Automobili Lamborghini’s fans and customers.” With this foray, Lamborghini is also deepening its footprint in the blockchain industry. Back in August 2022, the automaker joined hands with NFR Pro to introduce a range of company-branded non-fungible tokens.