The global NFT market has seen a significant downturn recently, with various platforms and investors feeling the impact. As the hype surrounding NFTs subsided last year, the market experienced a correction, leading to a decline in trading volumes and valuations.
OpenSea, one of the largest NFT marketplaces, has been hit particularly hard, with its valuation now facing a significant cut by one of its most prominent investors, Tiger Global. According to a recent report by The Information, Tiger Global, a $13 billion tech-focused venture fund, recently disclosed that its equity in OpenSea has dropped from $126.8 million to $30.2 million, representing a 76% drawdown. The firm became one of the largest investors in OpenSea when the NFT platform raised $300 million during a Series C round earlier last year.
Last December, the firm reported a 20% paper loss, with over half of that drawdown coming from its crypto-related investments. The New York-based firm established its venture fund in 2021 before placing sizeable bets on blue-chip crypto startups. Some other notable firms that the firm had reportedly dabbled in include Bored Ape Yacht Club creator Yuga Labs, MoonPay, and FTX, which went under last November, completely wiping out the firm’s investment.
(By Newton Gitonga)
All Comments