Animoca Brands Eyes Relisting, Tokenizes Antique Violin Amid Fluctuating Valuation
Summary:
Metaverse leader, Animoca Brands, is reportedly exploring a return to public trading after it was delisted from the Australian Securities Exchange (ASX) in 2020 due to non-compliance issues related to cryptocurrency businesses. The company is considering more accommodating jurisdictions for its public return, with focus on Hong Kong and the Middle East. Meanwhile, Animoca is also seeking funding from other sources, recently tokenizing a 1708 Stradivarius violin for a multimillion-dollar loan. The company, which surged to a worth of nearly $6 billion by January 2022, saw its valuation drop below $2 billion amid industry challenges in 2023, significantly reducing its metaverse fund's initial fundraising target of $2 billion.
Metaverse superpower, Animoca Brands, is seemingly plotting a return to public trading after it was removed from the Australian Securities Exchange (ASX) in March 2020. For its next public endeavor, the firm is believed to be focusing on more accommodating jurisdictions, with Hong Kong and the Middle East on the top of their consideration list, as per a June 26 report by The Information. The source of this news is the company’s co-founder, Yat Siu. While Animoca has been involved in discussions with investment banks, it has yet to decide on a location or enlist the guidance of an adviser, as per the report's details. The enterprise is established in Hong Kong, but it also operates out of various international offices and subsidiaries. The ASX delisted Animoca in March 2020, after the exchange expressed concerns over Animoca's adherence to listing rules, especially those that govern its investments in cryptocurrency and blockchain-related endeavors. These were viewed as incongruous with the exchange’s fiscal and asset norms of the time.
As for financial backing, Animoca is exploring different options. A few weeks ago, the company tokenized a Stradivarius violin dating back to 1708, in order to secure a loan of several million dollars from Galaxy Digital. The classic musical instrument, which was once owned by Russian royal, Catherine the Great, was transformed into a non-fungible token (NFT) by Galaxy who will retain both the NFT and the actual violin until the loan is repaid by Animoca. The specific amount of funding garnered is yet to be divulged.
As for Animoca’s valuation, it shot up to a staggering $6 billion by the dawn of 2022, fuelled by the boom in the crypto and gaming sectors. Animoca has notable investments in various Web3 corporations and it has gobbled up an array of businesses over the recent years, from gaming-centric firms to digital advertising agencies. However, by 2023, the company's worth reportedly stumbled to less than $2 billion, amid a range of industry difficulties; notably the fall of FTX and multiple cryptocurrency lenders declaring bankruptcy. This led Animoca to lower its fundraising goals for a metaverse fund from an initial $2 billion down to $800 million. Animoca Brands was contacted by Cointelegraph for comments but the company hasn’t responded yet.
Published At
6/26/2024 6:25:37 PM
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