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In a recent report from Bloomberg, it has been revealed that U.S.-based investment firm Tiger Global has significantly reduced its stakes in certain NFT projects.
The firm reportedly slashed its stakes in the Bored Ape Yacht Club (BAYC) collection by 69% and in NFT marketplace OpenSea by 94%, marking a substantial devaluation since its initial investments in these projects.
Key Points:
The percentage reductions in stakes reflect the considerable decrease in valuations of the NFT projects as observed by Tiger Global since their initial investment.
Another American investment firm, Coatue Management, also took a similar step by reducing its stake in OpenSea by 90% back in November, leading to a significant decline in the platform's valuation from $13.3 billion to $1.4 billion.
Notably, Coatue Management also marked down its investment in the crypto payment service provider MoonPay by 90% during the same period, indicating a broader trend among investment firms adjusting their positions in the crypto and NFT space.
Zoom Out:
The decision of leading investment firms to reduce their stakes in NFT projects comes amidst a broader market downturn, which has resulted in a substantial decline in the floor prices of numerous high-profile NFT collections, including BAYC, Azuki, Mutant Ape Yacht Club, and Pudgy Penguins.
This market downturn has also led to significant repercussions for various NFT-related companies, with reports of mass layoffs at firms such as OpenSea, Yuga Labs, DapperLabs, Magic Eden, Candy, Metaplex, Autograph, and SuperRare, underscoring the widespread impact of the current market conditions on the NFT industry.