Investment Firm Tiger Global Marks Down Stakes in NFT Marketplace OpenSea by 94%
Tiger Global, a prominent investment management company, has reportedly marked down its stakes in several investments, including popular nonfungible token (NFT) projects like the Bored Ape Yacht Club (BAYC) collection and NFT marketplace OpenSea.
Marked Down Stakes
According to sources cited by Bloomberg, Tiger Global has marked down its stakes on BAYC by 69% and on OpenSea by a significant 94%. This move comes as a surprise to many in the crypto and investment communities, as the NFT market has been experiencing significant growth and attention in recent years.
Cointelegraph reached out to Tiger Global for comments, but the investment company did not provide an immediate response. The significant mark down of stakes in NFT projects and marketplaces by Tiger Global raises questions about the company’s assessment of the future potential of these investments.
Tiger Global’s Active Investment in Crypto Space
Tiger Global has been actively investing in various areas within the crypto space. In 2021, the investment firm co-led a $24 million funding round for blockchain security firm CertiK, demonstrating its efforts to expand its security offerings for the decentralized finance (DeFi) sector. In 2022, Tiger Global participated in a Series B investment round for zero-knowledge applications platform Aleo, and also invested in the layer-2 network Polygon.
The Impact on NFT Market
Tiger Global’s decision to mark down its stakes in NFT projects and marketplaces is not an isolated case. In November 2022, Coatue Management, OpenSea’s co-lead investor, marked down its investment in the NFT marketplace by 90%. This decision significantly reduced the value of its stake in the NFT platform, implying a substantial drop in OpenSea’s on-paper valuation.
Possible Implications
The significant mark downs by both Tiger Global and Coatue Management raise concerns about the overall health and future potential of the NFT market. It also highlights the potential volatility and uncertainty within the crypto and NFT investment space, prompting investors and industry observers to reevaluate their perceptions of the market’s long-term prospects.
As the NFT market continues to evolve and attract attention from both investors and consumers, the decisions made by major investment firms like Tiger Global and Coatue Management could have far-reaching implications for the broader cryptocurrency and NFT industries.
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