Crypto News – The US tech investment firm Coatue Management has reduced the value of its ownership of 90% of the NFT platform OpenSea.
OpenSea Investor Coatue Announces 90% Stake Reduction
OpenSea’s on-paper valuation of $1.4 billion was suggested by a document that The Information examined and published on November 7. The document revealed that Coatue had cut its investment from $120 million to $13 million. Additionally, Coatue reduced its investment in Web3 payment processor MoonPay by 90%.
Things Have Been Going Downhill at OpenSea for a While
On Nov. 3, OpenSea announced a 50% workforce cut as part of its strategy to relaunch as OpenSea 2.0, following a persistent bear market and a year-long decline in NFT trading activity. In order to improve speed and quality, OpenSea CEO Devin Fizner stated that the new platform version will prioritize technological upgrades.
Furthermore, OpenSea came under fire in August when it declared it was discontinuing the operator filter, a tool that let producers flag non-royalty-enforcing retailers. Both the reduction in the labor force and the August developments may have influenced Coatue’s decision. Moreover, the decline in NFT trading volumes coincides with Coatue’s move. With total trading volumes falling by 80% since March 2022, NFT’s appeal has been waning ever since.
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