1. PixelPlaygroundHome
  2. Blockchain Briefs

Animoca Brands “Meta Universe Fund” Fails to Hit Target by 20%

• Blockchain Briefs • 102 views

According to reports, two people familiar with the matter said that Animoca Brands, a Web3 game developer and investment company, had lowered its goal for the Meta Universe Fund by

Animoca Brands Meta Universe Fund Fails to Hit Target by 20%

According to reports, two people familiar with the matter said that Animoca Brands, a Web3 game developer and investment company, had lowered its goal for the Meta Universe Fund by 20% to $800 million. When Animoca first announced its fund plan last November, its goal was $2 billion. Then halve it to $1 billion in January.

Animoca Brands lowered the goal of the Meta Universe Fund to $800 million

Animoca Brands, a prominent Web3 game developer and investment company, is reportedly struggling to reach its initial goal for the “Meta Universe Fund”. According to sources, the company had to lower its target for the fund by 20% to $800 million. The initial goal for the fund, announced in November last year, was as high as $2 billion, which was later reduced to $1 billion in January.

The Animoca Brand and the Meta Universe Fund

The Animoca Brands is a blockchain-based global gaming company that focuses on blockchain gaming and various blockchain-related products. The company’s objective is to leverage the advantages of blockchain technology to innovate and enhance the gaming experience by creating a more player-centric ecosystem. To achieve its objective, the company launched the “Meta Universe Fund” to raise capital to support the development of its products.

Initial Target for the Fund and Current Development

Initially, the target of the Meta Universe Fund was set at a staggering $2 billion. Due to some unforeseen circumstances, the company had to scale back and reduce its objective to $1 billion in January. However, the company is still struggling to reach its new target of $800 million, setting back its ambitious plan to finance numerous blockchain projects in gaming, virtual reality, and other blockchain-related products.

Difficulty Encountered by Animoca Brands

The Meta Universe Fund is not the first time Animoca Brands has encountered difficulty in raising funds for its various projects. The company’s CEO, Yat Siu, has admitted that the current bear market in the crypto industry could be a significant factor behind the company’s shortfall. The bear market has, to a large extent, reduced the value of cryptocurrencies, making it less attractive to investors.
Furthermore, the company’s fund raising activities also suffered from a general decline in speculators’ participation, fueled to a significant extent by regulatory crackdowns and the general failure of many projects in the market. Additionally, it may be possible that the complexity of the Animoca’s funding scheme and the larger hiatus between the release of new titles to investors could be a factor frustrating investors and making them more hesitant to invest in the company.

The Impact

The negative impact of the shortfall in funds could extend beyond the Animoca company to ripple the crypto market at large. The vision of developing the “Meta Universe” requires a significant investment in various blockchain applications to ensure the emergence of new gaming titles, apps, and a virtual ecosystem. The company’s innovative idea, designed to transform the gaming industry, is now in doubt due to its inability to reach its desired financial objective.

Conclusion

The struggle of Animoca Brands to meet its funding target has exposed the difficulties that come with fund-raising in a bear market. However, the effort of the company to be innovative in blockchain gaming and finance is still worthy of commendation. Though there is a reduction in investor confidence following a long-term bear market, there is still hope that the blockchain gaming market will continue to grow, and Animoca brands will find its strength again.

FAQ

Q: What is Animoca brands?
A: Animoca Brands is a blockchain-based global gaming company focused on blockchain gaming and various blockchain-related products.
Q: What is the Meta Universe Fund?
A: The Meta universe fund is a financial pool aimed at raising enough capital for the development of latest blockchain applications to improve and transform the gaming industry.
Q: Why did Animoca have to reduce its objective for the “Meta Universe Fund”?
A: Animoca had to reduce its objective because of many factors, including the bear market in the crypto industry and decreased investor confidence in blockchain-related industries.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/9298/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/24/2023 12:02
Next 03/24/2023 12:13

Recommended articles