At the end of April, Animoca Brands, a Hong Kong-based blockchain gaming developer, reported token reserves of $2.7 billion. It reflected a 36% decrease from the previous year due to the crypto price plunge. Animoca Brands token disclosed assets totalling $3.4 billion.
This valuation included $194 million in cash and stablecoins and $2.7 billion in “off-balance-sheet token reserves.”
Further, the spokesperson clarified that the $2.7 billion in tokens, although not immediately liquid, were comparable to the valuation of $4.2 billion in April 2022. Liquid digital assets were valued at $566 million, which decreased from the previous year’s $659 million valuation.
After effects of crypto price plunge for Animoca Brands token
Price volatility since April 2022 has had an impact on crypto asset valuations, affecting the entire sector, according to the spokesperson.
In addition, Animoca Brands is known for investing in companies to realise its vision of a blockchain-based “metaverse”. It attained a valuation of $5.6 billion in September.
In March, a report found that the company adjusted its objective for the new metaverse fund. This was largely due to the unpredictable nature of the cryptocurrency industry. In 2022, crypto prices experienced a significant decline. This crypto price plunge led to investor caution as collapses occurred at top crypto firms and regulatory scrutiny intensified.
Moreover, Animoca Brands token took a plunge. The company plans to release audited financial statements for 2020 soon. It will be followed by additional financial information for 2022 and the first quarter of 2023.
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