OpenSea Valuation Slashed 90%
OpenSea's valuation plummeted by 90% as Coatue Management revised estimates amidst NFT market downturn, according to an exclusive from The Information.
The Deets
- Valuation Cuts: From $13.3 billion to a much lower figure.
- Series C Round: Coatue and Paradigm's $300 million investment in 2022.
- Market Climate: Persistent sales slump in NFT markets.
- Staff Reductions: OpenSea slashed its workforce by 50%.
The Bulk
OpenSea, once a crown jewel with a towering $13.3 billion valuation following a massive Series C funding round, is now facing a significant markdown by one of its leading investors, Coatue Management. This revision isn't just a small dent; it's a staggering 90% cut that underscores the volatility and current bearish sentiments in the crypto sphere.
The drop in OpenSea's valuation mirrors the broader NFT market's slowdown, which has seen weekly sales plummet from 176,000 to just 23,000 at the beginning of the year, a clear signal that the frenzy of 2021 and early 2022 has cooled substantially. Furthermore, OpenSea's decision to cut its workforce in half earlier in November points to a strategic scaling back, as companies brace for prolonged crypto winter conditions.
❗Why It Matters
This valuation cut reflects more than just a market correction; it's a stark indicator of the fragility of the NFT ecosystem in the face of broader economic headwinds, signaling caution for both investors and creators within this nascent space.
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