$2 Billion Is About to Flood the Metaverse

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Animoca Brands, the owner of Sandbox, allocates $2 billion to the metaverse fund. It will focus on mid to late-stage startups.

Animoca Brands inaugurates its investment wing, Animoca Capital. According to a report from Nikkei Asia, the Hong Kong-based blockchain gaming company plans to launch a fund of up to $2 billion to invest in metaverse businesses.

Animoca Brands is one of the main owners of the Sandbox metaverse project, which allows users to create, buy and sell digital assets in the form of non-fungible tokens (NFTs). Sandbox has a market cap of over $850 million.

According to co-founder Yat Siu, Animoca Capital will start investing from its $2 billion fund next year. The focus will be on “all digital property rights”. The fund will invest worldwide, regardless of geographical boundaries.

The fund will offer its clients exposure to mid to late-stage startups. Yat Sui thinks the market will recover. He is optimistic about the underlying use of the metaverse and the gaming industry. He says:

“More and more people are joining crypto every day, especially in games. I hope this will also lead to a scenario where digital property is recognized as physical property in the legal system.

Not just Animoca, but other companies are placing their bets in the metaverse sector. Today, South Korean firm Daesung Private Equity created the Daesung Metaverse Scaling Fund. The company allocates a budget of nearly $83.5 million to the metaverse fund, according to a report by Korea JoongAng Daily.

The dream of the metaverse dead in the water

Last year, the world’s leading social media company, Facebook, became Meta. But, this year, metaverse projects have taken a huge hit. In 2022, Meta’s revenue is down more than 24%. It had to implement strict cost-cutting measures, including laying off more than 11,000 employees, or 13% of its workforce.

SAND, the native token of Sandbox, one of the biggest blockchain-based metaverse projects, has fallen from nearly $7 at the start of this year to $0.58. The native token is down more than 90% from its all-time highs.

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