Animoca Brands has established itself as one of the most prominent investors in NFT, blockchain gaming, and metaverse-focused firms. But its appetite for metaverse appears to have taken a hit.

In the latest development, the Hong Kong-based blockchain gaming giant has reportedly reduced the target for its metaverse fund by 20%. The report suggests that the company is scaling down its initiative in response to the volatility in the crypto sector.

• The fund Animoca Capital, which was unveiled last November, had an initial target of around $2 billion but was later halved to $1 billion. According to Reuters, the latest reduction brings down its target to $800 million, meaning a 60% drawdown compared to the initial numbers.
• In a previous interview, Animoca’s co-founder and executive chairman Yat Siu stated that the main focus of the fund is on digital property rights while providing opportunities to access Web3 companies remains the broader goal.
• With no geographical restrictions, the exec added that the fund will prove to be a good entry point for Web3 businesses and investors.
• The company had invested in over 380 companies, some of the prominent ones including Axie Infinity and OpenSea, with the vision to develop a metaverse that is based around blockchain tech, enabling users to purchase and trade digital assets in the form of NFTs.
• Animoca raised $100 million in a funding round last summer from Singapore state-owned Temasek, which was deployed through convertible bonds.