Coatue Management, a technology investment company, has reduced its stake value in OpenSea, a non-fungible token (NFT) platform, by 90%, as stated by Cointelegraph.
According to Cointelegraph, on November 7, 2023, a document scrutinised by The Information stated that Coatue brought down its investment to $13 million from $120 million. From what it’s understood, this development has brought OpenSea’s on-paper valuation to $1.4 billion. It’s believed that Coatue has also devalued by 90% its investment in MoonPay, a Web3.0 payment provider.
Based on Cointelegraph’s data, on account of bear market implications along with a year-old fall in NFT trading affairs, OpenSea revealed about reducing its employee base by 50% for relaunching as OpenSea 2.0. Devin Fizner, CEO, OpenSea, mentioned that the new OpenSea model will emphasise on technological upgrades, in addition to amplifying its speed and quality. For Fizner, a smaller team will enable the platform to remain “nimble and attentive.”
Moreover, Cointelegraph noted that this development around Coatue has happened over a fall in NFT trading amounts. Reportedly, in 2021, the sector recorded its highest growth, by clocking $14 billion worth sales during the year. After that update, there’s been a fall in NFT popularity with overall trading volumes witnessing a 80% fall since March, 2022.
(With insights from Cointelegraph)
