Investment Firm Tiger Global Marks Down NFT Investments
Investment firm Tiger Global has reportedly marked down several investments, including stakes in popular nonfungible token (NFT) projects like the Bored Ape Yacht Club (BAYC) collection and NFT marketplace OpenSea. The company marked down its stakes on BAYC by 69% and on OpenSea by 94%, according to anonymous sources cited by Bloomberg. Tiger Global has been actively investing in various areas of the crypto space, including blockchain security and privacy-focused projects. In 2021, the firm co-led a $24 million funding round for blockchain security firm CertiK. In 2022, Tiger Global participated in a Series B investment round for zero-knowledge applications platform Aleo and invested in the layer-2 network Polygon.
Tiger Global Joins Coatue Management in Marking Down NFT Investments
Tiger Global is not the first investment firm to mark down its investments in the NFT space. On November 8, Coatue Management, OpenSea’s co-lead investor, marked down its investment in the NFT marketplace by 90%. The value of Coatue’s stake in OpenSea dropped from $120 million to $13 million, resulting in a decrease in OpenSea’s on-paper valuation to $1.4 billion.
Hot Take: Investment Firms Adjusting NFT Valuations
Investment firms like Tiger Global and Coatue Management have recently marked down their investments in NFT projects, signaling a potential cooling off of the NFT market. This adjustment reflects a reevaluation of valuations based on market conditions and investor sentiment. While it may dampen short-term enthusiasm, it also presents an opportunity for more realistic pricing and long-term sustainability in the NFT space. As the market matures, investors will likely become more discerning and cautious in their NFT investments, resulting in a healthier and more stable ecosystem.
By
By
By
By
By
By