Animoca Brands Raises $75.3 Million in Second Fundraising Round to Build Blockchain-Based Metaverse

Hong Kong-based blockchain game developer Animoca Brands, which is headquartered in Australia, has completed its second round of fundraising, raising $75.3 million and bringing the company’s valuation to A$8.2 billion ($5.5 billion). The firm’s ambitious vision to create a “metaverse” based on blockchain technology has attracted investment from 340 companies, with non-fungible tokens (NFTs) being used to buy and sell virtual assets in the digital world. Animoca’s co-founder, Yat Siu, says that its investors have a long-term view and see the metaverse as the next stage of the internet’s development, which means that the current market situation is a “meaningful blip” that will not affect its future.

The raise was supported by investors such as Liberty City Ventures and Kingsway Capital, and is the second part of a $360 million round from January, which was delayed because of concerns by some investors about the collapse of TerraUSD and its impact on cryptocurrency markets. The recent cryptocurrency price crash, where top cryptocurrency Bitcoin fell by 57% in H1 2022, has affected the market, and investors fear contagion across crypto markets, with some crypto lenders freezing customer withdrawals and the liquidation of crypto hedge fund Three Arrows Capital last month.

The use of non-fungible tokens (NFTs) and cryptocurrencies in blockchain-based virtual world games have surged in popularity, with the rise of the metaverse concept becoming a tech buzzword in 2021. However, the market for these tokens has suffered a significant decline this year as the adoption of the crypto-based metaverse has yet to take off. In fact, NFT sales volumes dropped sharply last month, reflecting the current market situation.

Despite this downturn, Animoca Brands, a Hong Kong-based Australian company, is bullish on the potential of the crypto-based metaverse and the value of NFTs and cryptocurrencies. The company raised $75.3 million in a recent funding round that values the company at A$8.2 billion ($5.5 billion). Animoca has invested in over 340 companies to build a decentralized virtual world where virtual assets can be traded and invested in using NFTs and cryptocurrencies.

According to Animoca’s financial statement in April, the company’s portfolio of investments was valued at $1.5 billion, while its reserves of digital assets, including game-related cryptocurrencies and NFTs, were valued at $4.2 billion. Animoca’s vision for a blockchain-based metaverse is that it will create an open and decentralized virtual world, where players can interact, engage in transactions, and invest in digital assets.

Animoca’s co-founder, Yat Siu, compares the development of the crypto-based metaverse to the adoption of the internet or mobile phones. He sees the current market situation as a temporary “blip,” and his investors share his long-term view that the metaverse represents the next stage in the internet’s development, or “Web3.” Despite the current market conditions, Animoca’s investment in the future of blockchain-based virtual world gaming is strategic and positions the company to take advantage of the growing interest in NFTs and the virtual world.