Animoca Brands is valued at $5.9 billion in 2022 fundraising. Its value is now trading at $1.5 billion in secondaries, Yat Siu said. “It's just an information mismatch,” the co-founder added.
Animoca Brands, a crypto conglomerate and prolific investor, is not asset poor.
It had about $3.3 billion in crypto, cash, equities and other assets as of March, according to its first quarter. Financial results.
However, investors in the secondary markets were unimpressed.
The company's secondary shares trade at about $1.5 billion, said Yat Siu, executive chairman and co-founder of Animoca.
This is around 75% lower than Animoca's valuation in July 2022. Announced It raised $75 million at a valuation of $5.9 billion.
CU estimates Animoka's current trade value BulletinIt scrapes secondary market data about crypto companies from brokers and trading platforms among other sources.
The Bulletin estimates Animoca's current value on secondaries at about $1.3 billion.
NFT retreat
Secondary markets are known to be liquid.
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Their number of buyers and sellers is much smaller than those on the New York Stock Exchange.
However, the decline in Animoca's perceived value among deep-pocketed investors piggybacks on broader pessimism in the non-fungible token market.
Headquartered in Hong Kong, Animoka is known for its investments in NFTs, Web3 Gaming and Metaverse.
While crypto markets recovered after the crash in 2022, NFTs did not. July saw $430 million in trading volume, down from $6 billion in January 2022 Cryptoslam.
'wrong right'
Animoca has weathered the storm and is considering an IPO.
And Siu believes that if his company were now publicly traded, the difference between the net worth of its assets and its current valuation on secondaries would align.
“It's just an information asymmetry,” Siu said NewsAs an indication of difference. “If we're really listed correctly, it's probably wrong.”
Crypto market movers
Bitcoin is trading at $60,219, up 5.9% in the last 24 hours.
Ethereum is also up 7.8% and stands at $2,634.
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Ben Weiss is the Dubai correspondent News. Got a tip? Email him [email protected].