Coatue Management, the prominent U.S. tech investment firm, has notably adjusted the valuation of its stake in the nonfungible token (NFT) platform OpenSea, marking it down by an impactful 90%.<\/p>\n\n\n\n
According to information disclosed on November 7, as reported by The Information, Coatue revised its initial investment from $120 million to $13 million. This adjustment suggests that OpenSea’s on-paper valuation has now reached $1.4 billion.<\/p>\n\n\n\n
Notably, Coatue has also applied a similar 90% markdown to its investment in Web3 payment provider MoonPay.<\/p>\n\n\n\n
In January 2022, OpenSea secured a substantial $300 million in a Series C funding round, led by crypto venture capital firm Paradigm and Coatue. At that time, the NFT platform garnered a valuation of $13.3 billion.<\/p>\n\n\n\n
In response to a persisting bear market and a prolonged decline in NFT trading activity, OpenSea revealed a significant restructuring plan on November 3, involving a 50% reduction in staff as part of its initiative to relaunch as OpenSea 2.0.<\/p>\n\n\n\n
OpenSea’s CEO, Devin Fizner, emphasized that the new platform iteration will prioritize technological enhancements, speed improvements, and overall quality. Fizner sees the benefits of a streamlined team, allowing the platform to remain “nimble and attentive.”<\/p>\n\n\n\n
In August, OpenSea faced scrutiny for retiring its operator filter, a feature enabling creators to blacklist non-royalties enforcing marketplaces.<\/p>\n\n\n\n
Coatue’s decision to mark down its investments coincides with a broader downturn in NFT trading volumes. The NFT sector, which peaked in 2021 with over $14 billion in annual sales, has experienced an 80% decrease in overall trading volumes since March 2022.<\/p>\n\n\n\n
A November 3 report from crypto data firm DappRadar revealed a noteworthy development, indicating the NFT market’s first month of gains in over a year, with a month-over-month increase of $99 million recorded in October.<\/p>\n","protected":false},"excerpt":{"rendered":"
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