Animoca Brands, the owner of Sandbox, allocates $2 billion to the metaverse fund. It will focus on mid to late-stage startups.
Animoca Brands inaugurates its investment wing, Animoca Capital. According to a Nikkei Asia report, the Hong Kong-based blockchain gaming firm plans to launch a fund of up to $2 billion to invest in metaverse businesses.
Animoca Brands is one of the primary owners of the metaverse project Sandbox, which allows users to build, buy, and sell digital assets in the form of Non-Fungible Tokens (NFTs). Sandbox has a market capitalization of over $850 million.
The Metaverse Sector Flooded with Investments
According to the co-founder Yat Sui, Animoca Capital will start investing from its $2 billion fund next year. Its focus will be on “everything digital property rights.” The fund will invest globally, not considering any geographical boundaries.
The fund will provide its clients with exposure to mid to late-stage startups. Yat Sui believes that the market will recover. He is bullish on the underlying utility of the metaverse and gaming sector. He says:
“More people are joining crypto every day, especially in gaming. I’m hoping that this will also drive a scenario where digital property will be recognized like physical property in the legal system.”
Not just Animoca, but some other companies are placing their bets in the metaverse sector. Today, South Korean firm Daesung Private Equity formed the Daesung metaverse scale-up fund. The firm allocates a budget of nearly $83.5 million for the metaverse fund, according to a Korea JoongAng Daily report.
The Metaverse Dream Dead in the Water
The world’s leading social media company Facebook rebranded to Meta last year. But, this year, metaverse projects have taken a huge beating. In 2022, the earnings of Meta are down by more than 24%. It had to implement strict cost-cutting measures that included laying off more than 11,000 employees, making up 13% of its workforce.
SAND, the native token of Sandbox, one of the largest blockchain-based metaverse projects, is down from nearly $7 at the beginning of this year to $0.58. The native token is down by more than 90% from its all-time highs.
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