As per the latest report, the world’s largest NFT marketplace OpenSea has seen its valuations tank by a staggering 90% as one of its biggest backers pulls out a massive investment.
Coatue Management Cuts Stake In OpenSea
Coatue Management, a tech-focused investment manager, has sharply devalued its holdings in OpenSea by nearly 90%, as revealed in documents scrutinized by The Information.
In the second quarter of 2023, Coatue downsized its once-assessed $120 million investment in the NFT platform to $13 million. This significant markdown implies that OpenSea’s current valuation stands at $1.4 billion or below. Additionally, Coatue also underwent a similar 90% markdown in its stake in web3 infrastructure company MoonPay.
This undisclosed markdown highlights how venture investors are reevaluating the worth of their investments made during the peak of the cryptocurrency surge, due to the substantial decline in the market. In the early part of the previous year, OpenSea held a valuation of $13.3 billion following a funding round jointly led by Coatue and Paradigm.
Tough times for the NFT Marketplace
OpenSea had attained a valuation of $13.3 billion in the previous year when it secured $300 million in Series C funding, with Coatue Management co-leading the round. Nevertheless, with the onset of the crypto bear market, shareholders began selling their OpenSea shares. Also, the NFT market hasn’t quite caught up with the crypto market rally of 2023.
On November 3, CEO, Devin Finzer, disclosed a significant development within the company. In response to a strategic redirection focused on enhancing technology, reliability, speed, quality, and overall user experience, OpenSea took the step of reducing its workforce by 50% across all departments. Furthermore, Finzer mentioned that the restructured OpenSea team would have a flatter hierarchy with fewer middle managers.
Despite all the challenges, the NFT marketplace continues to new changes to the platform. Last month, the NFT marketplace launched OpenSea Studio to allow creators to easily launch and manage their NFT projects.
Inside OpenSea Studio, users can effortlessly generate NFTs directly into their own wallets, broadening their creative horizons. This versatile platform also offers compatibility with a variety of OpenSea-supported blockchains, creating an inclusive and flexible space for creators.
The post Breaking: NFT Giant OpenSea’s Valuation Tanks By 90%, Here’s Why appeared first on CoinGape.