US technology-focused investment manager Coatue Management has reportedly reduced its stake in OpenSea, a leading nft platform.
According to documents reviewed by The Information, Coatue reduced his stake previously valued at $120 million in OpenSea to just $13 million during the second quarter of 2023.
Coatue cuts OpenSea stake by 90%
Document based examined According to The Information, Coatue reduced its stake in the nft platform from an estimated $120 million to $13 million during the second quarter of 2023. This nearly 90% downgrade suggests that OpenSea’s current valuation may be as low as $1.4 billion, a substantial decline from its lofty valuation of $13.3 billion in early 2022.
Coatue Management had been a prominent investor in OpenSea and participated in a Series C funding round in January 2022 that raised $300 million and valued the nft platform at $13.3 billion.
This Coatue downgrade comes as the nft market has been dealing with a prolonged downturn. NFTs peaked in 2021, with sales exceeding $14 billion during the year. However, since March 2022, the nft market has witnessed an 80% drop in trading volumes.
Despite the recent decline in nft trading, there are signs of hope for the industry. According to a DappRadar report, the nft market saw its first monthly increase in over a year, with trading volume increasing by $99 million in October. This suggests a possible change in market direction, although it is still relatively modest.
Restructuring for OpenSea 2.0
In response to difficult market conditions, OpenSea announced a staff reduction on November 3. CEO Devin Finzer revealed that the company had cut 50% of its staff across all departments.
The restructuring aims to create a leaner and more agile team that can focus on updating platform technology, improving speed, and improving overall quality.
Finzer expressed confidence that this strategic move would allow OpenSea to remain vigilant and alert as they prepare for the launch of OpenSea 2.0.
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OpenSea is making some important changes today to focus on the next version of our product.– Devin Finzer (dfinzer.eth) (@dfinzer) November 3, 2023
Additionally, OpenSea is preparing for a major transformation with the release of OpenSea 2.0. The revamped platform is expected to provide a superior user experience and incorporate technological improvements with a focus on upgrading platform technology, improving speed and improving overall quality.
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