Investment firm Tiger Global has reportedly reduced the valuation of its stakes in Bored Ape Yacht Club and OpenSea. According to a Bloomberg report, the company reduced the value of its investment in Bored Ape Yacht Club (BAYC) by 69% and its share of the OpenSea nft marketplace by 94%.
The move follows Tiger Global's decision to reduce its $38 million investment in FTX to zero.
Global Tiger Investors Experience Losses
Tiger Global's Private Investment Partners 15 fund, with nearly $13 billion in assets, has also crypto&utm_medium=social&utm_campaign=socialflow-organic&utm_source=twitter” data-wpel-link=”external” target=”_blank”>reportedly devalued ai-powered email company Superhuman by 45% and reduced the valuation of privacy-focused search engine platform DuckDuckGo by 72%.
According to anonymous sources, investors in the Private Investment Partners 15 fund experienced a paper loss of 18% at the end of September. The decision to downgrade the valuations of Superhuman and DuckDuckGo is seen as an effort to mitigate the risks associated with further declines in value.
Meanwhile, the Bored Ape Yacht Club collection, whose stake has been marked down 69% by Tiger Global, has faced challenges. BAYC's current low price is down 77% from its all-time high in May 2022, according to data from the minimum nft price.
Another investment firm, Coatue Management, made a similar decision in early November 2023 to reduce the valuation of its investment in the OpenSea nft marketplace by 90%. Reports indicate that Coatue Management reduced its stake from an initial $120 million to $13 million amid tough nft market conditions.
nft Market Could Face Resurgence
NFTs, unique cryptoassets that verify ownership of items, have not been immune to the extended bear market that hit the broader crypto industry this year. On November 3, OpenSea, a prominent nft marketplace, announced a significant 50% workforce reduction, a strategic move aligned with the shift towards OpenSea 2.0.
Devin Fizner, CEO, emphasized that this restructuring aims to improve technological capabilities, emphasizing performance and quality while maintaining agility and responsiveness.
JPMorgan highlighted on Thursday that there is a resurgence in the decentralized finance (DeFi) and non-fungible token (nft) sectors. This revival is linked to the growing anticipation of a US-based spot bitcoin exchange-traded fund (ETF), which will positively influence the overall cryptocurrency market sentiment.
Despite this positive trend, the report, led by analyst Nikolaos Panigirtzoglou, shows cautious optimism and states that it is too early to get too excited about the revival.
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