Coatue Management, a U.S. tech investment firm, has substantially lowered its valuation of the non-fungible token (NFT) platform OpenSea. Recent documents reveal a drastic 90% markdown, reducing Coatue’s investment from $120 million to $13 million, resulting in an implied valuation for OpenSea of $1.4 billion. This significant adjustment follows a $300 million Series C funding round led by Coatue and Paradigm in January 2022, which had previously elevated OpenSea’s valuation to approximately $13.3 billion.
The recalibration of OpenSea’s valuation is attributed to a sustained bear market and declining NFT trading activities. The NFT industry, which experienced remarkable growth in 2021 with sales surpassing $14 billion, is currently facing challenges, including an 80% dip in trade volumes since March 2022. OpenSea has responded to the market conditions by announcing a 50% reduction in its workforce and unveiling plans for OpenSea 2.0, focusing on technology enhancements and improved service quality.
Despite recent indications of a potential crypto market recovery, NFT sales continue to struggle, with weekly transactions falling from around 176,000 at the beginning of the year to about 23,000 recently. Weekly sales values have also halved, from $118 million to $62 million. OpenSea, once considered a leader in the NFT space, is now navigating a contracted market and investor reassessment, reflecting a broader sense of caution and realism in the digital asset space.
By FCCT Editorial Team
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