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News

Animoca Brands Valuation Is Now Just $1.5 billion on Secondary Market

2 hours ago - Around 2 mins mins to read

Key Points:

  • Animoca Brands valuation is $3.3 billion, but its secondary market valuation is around $1.5 billion, down from $5.9 billion in July 2022.
  • The drop in Animoca’s value reflects a broader downturn in the NFT market, with trading volumes falling from $6 billion to $430 million.
In the first-quarter financial results of Animoca Brands, as of March, the company held almost $3.3 billion in digital currencies, cash, stocks, and other kinds of assets, DL News reported.
Animoca Brands Valuation Is Now Just $1.5 billion on Secondary Market

Read more: Animoca Brands Listing in Hong Kong Before 2025 Is Being Promoted

Animoca Brands Valuation vs. Secondary Market Valuation Diverge

The situation is totally different on the secondary market, where the valuation stands at much lower levels when it comes to Animoca Brands.

Animoca Brands valuation is now about $1.5 billion on the secondary market, according to Yat Siu, the company’s executive chairman and co-founder. It has lost nearly 75% from its peak valuation in July 2022, when it notched a valuation of $5.9 billion after raising $75 million.

On this point, Siu’s estimate is correct, with market data provider Bulletin pegging Animoca Brands at a secondary market valuation of approximately $1.3 billion. Bulletin sources these numbers from brokers and trading platforms, thereby showing similar sentiment in the markets.

Animoca Aims to Rectify Valuation Inconsistency

Any secondary market is generally less liquid compared to major exchanges like the NYSE, and quite often these inconsistencies are noted. On the back of the general decline in the price of an NFT, it has been that the Animoca Brands valuation has fallen.

While crypto markets have rebounded from the crash in 2022, NFT trading volume has continued in freefall, tumbling to just $430 million in July from $6 billion in January 2022, according to CryptoSlam. On the bright side, as he suggests, Siu stays optimistic that with proper representation, the proper market representation would resolve the valuation matters at hand.

“If we were actually properly listed, that would probably error correct,” Siu told DL News.

Animoca, which focuses on NFT, web3 gaming, and metaverse, is resilient and looking to IPO. Yat Siu explained that this had resulted from an “information mismatch” causing the difference in valuation, which he thought the listing would very likely adjust.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Animoca Brands

Animoca Brands Valuation

NFT

Secondary Market

Web3

yat siu

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Animoca Brands Valuation Is Now Just $1.5 billion on Secondary Market

Key Points:

  • Animoca Brands valuation is $3.3 billion, but its secondary market valuation is around $1.5 billion, down from $5.9 billion in July 2022.
  • The drop in Animoca’s value reflects a broader downturn in the NFT market, with trading volumes falling from $6 billion to $430 million.
In the first-quarter financial results of Animoca Brands, as of March, the company held almost $3.3 billion in digital currencies, cash, stocks, and other kinds of assets, DL News reported.
Animoca Brands Valuation Is Now Just $1.5 billion on Secondary Market

Read more: Animoca Brands Listing in Hong Kong Before 2025 Is Being Promoted

Animoca Brands Valuation vs. Secondary Market Valuation Diverge

The situation is totally different on the secondary market, where the valuation stands at much lower levels when it comes to Animoca Brands.

Animoca Brands valuation is now about $1.5 billion on the secondary market, according to Yat Siu, the company’s executive chairman and co-founder. It has lost nearly 75% from its peak valuation in July 2022, when it notched a valuation of $5.9 billion after raising $75 million.

On this point, Siu’s estimate is correct, with market data provider Bulletin pegging Animoca Brands at a secondary market valuation of approximately $1.3 billion. Bulletin sources these numbers from brokers and trading platforms, thereby showing similar sentiment in the markets.

Animoca Aims to Rectify Valuation Inconsistency

Any secondary market is generally less liquid compared to major exchanges like the NYSE, and quite often these inconsistencies are noted. On the back of the general decline in the price of an NFT, it has been that the Animoca Brands valuation has fallen.

While crypto markets have rebounded from the crash in 2022, NFT trading volume has continued in freefall, tumbling to just $430 million in July from $6 billion in January 2022, according to CryptoSlam. On the bright side, as he suggests, Siu stays optimistic that with proper representation, the proper market representation would resolve the valuation matters at hand.

“If we were actually properly listed, that would probably error correct,” Siu told DL News.

Animoca, which focuses on NFT, web3 gaming, and metaverse, is resilient and looking to IPO. Yat Siu explained that this had resulted from an “information mismatch” causing the difference in valuation, which he thought the listing would very likely adjust.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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