American technology investment company Coatue Management has significantly reduced its investment valuation in NFT market OpenSea by 90%.
according to Report On November 7, Coatue slashed its stake from an initial $120 million to just $13 million. This adjustment indicates that OpenSea is currently valued at approximately US$1.4 billion.
Coatue also revised the value of its investment in web3 payments provider MoonPay, also reducing it by 90%.
In January 2022, OpenSea received US$300 million in Series C financing. This round of financing was led by Paradigm and Coatue, and at the time the NFT platform’s valuation soared to $13.3 billion.
NFTs are unique cryptoassets that enable owners to verify their ownership of various items, whether physical or digital.
However, the NFT industry has not been immune to the effects of the prolonged bear market that has impacted the broader crypto industry. As a result, OpenSea announced on November 3 that it would significantly reduce its headcount by 50% as part of its strategic move to OpenSea 2.0.
OpenSea CEO Devin Fizner said the revamped platform will enhance its technology framework with a focus on improving performance and quality. Fizner believes a leaner team structure will allow the platform to remain agile and responsive.
Current status of NFT market
While there are some signs of recovery in the broader cryptocurrency market, the rebound in the NFT space has been slow.
recent data Indicating a significant decline in NFT transaction volume, weekly sales plummeted from approximately 176,000 at the beginning of the year to approximately 23,000, and the total value of weekly sales fell from US$118 million to US$62 million.
However, there is a glimmer of hope as the NFT market grew for the first time in more than a year, growing by $99 million in October. report Author: DappRadar, November 3. This rise may herald a slow but steady recovery in the NFT space.