ANIMOCA BRANDS CUTS METAVERSE FUND TARGET TO $800M: REPORT

Last updated: June 19, 2025, 22:45 | Written by: Brian Armstrong

The metaverse, once touted as the next frontier of the internet, has seen its fair share of turbulence.Amidst this volatility, Hong Kong-based Animoca Brands, a prominent developer of blockchain gaming technology and a significant investor in the metaverse space, has reportedly scaled back its ambitions for its dedicated metaverse fund.According to a recent Reuters report, citing sources familiar with the matter, Animoca Brands has reduced its target for the Animoca Capital fund by a further 20%, setting the new goal at $800 million. The company announced in November 2025 that it was working on a new Animoca Capital fund with a target of $2 billion but then halved that target in January 2025. Hong Kong-based Animoca Brands, a developer of blockchain gaming technology, has reportedly cut its target for its metaverse fund by a further 20% to $800 million, Reuters reportedThis marks the second significant reduction in the fund's target, which was initially set at an ambitious $2 billion in November 2025 before being halved to $1 billion in January 2025.This decision reflects the challenging landscape of the cryptocurrency and NFT markets, where volatility has become a significant concern for investors.But what does this mean for the future of metaverse investment, and what are the key factors influencing Animoca Brands' strategic shift? Hong Kong-based Animoca Brands, a developer of blockchain gaming technology, has reportedly cut its target for its metaverse fund by a further 20% to $800 million, Reuters reported citing sources familiar with the matter.Let's dive into the details.

The Metaverse Fund's Evolving Ambitions

Animoca Brands' initial vision for its metaverse fund was bold.The company aimed to inject $2 billion into the burgeoning metaverse ecosystem, backing promising projects and driving innovation in blockchain gaming, NFTs, and virtual experiences. In recent news, Animoca Brands has reportedly reduced its target for its metaverse fund by a further 20% to $800 million, according to sources familiar with the matter. The company has scaled back on its billion-dollar goal due to the volatility in the crypto sector.This commitment underscored Animoca's belief in the long-term potential of the metaverse.However, the realities of the market have necessitated a more cautious approach.

From $2 Billion to $800 Million: A Timeline

To understand the significance of the current reduction, it's important to trace the fund's trajectory:

November 2025: Animoca Brands announces the Animoca Capital fund with a target of $2 billion.
January 2025: The target is halved to $1 billion, reflecting growing concerns about market conditions.
Recent News: The target is further reduced by 20% to $800 million.

This series of adjustments reveals a pragmatic response to the evolving market dynamics. Animoca Brands cuts metaverse fund target to $800M: Report Cryptocurrency 87 The company announced in November 2025 that it was working on a new Animoca Capital fund with a target of $2 billion but then halved that target in January 2025.The initial exuberance surrounding the metaverse has given way to a more measured assessment of risks and opportunities.

Why the Reduction?Understanding the Market Volatility

The primary driver behind Animoca Brands' decision to reduce its metaverse fund target is the persistent volatility in the crypto sector. Hong Kong-based Animoca Brands, a developer of blockchain gaming technology, has reportedly cut its target for its metaverse fund by a further 20% to $800 million, Reuters reported, citing sources familiar with the matter. The blockchain gaming technology company reportedly scaled back on its billion-dollar goal due to volatility in the crypto sector. The company [ ]The cryptocurrency market, which is intrinsically linked to the metaverse and NFT ecosystems, has experienced significant fluctuations, making it difficult to predict future growth and profitability.

Several factors contribute to this volatility:

Macroeconomic Uncertainty: Global economic conditions, including inflation, interest rate hikes, and geopolitical tensions, have impacted investor sentiment across all asset classes, including cryptocurrencies.
Regulatory Scrutiny: Increased regulatory scrutiny of the crypto industry has created uncertainty and dampened investor enthusiasm.Governments worldwide are grappling with how to regulate cryptocurrencies and NFTs, leading to potential compliance costs and legal challenges.
Market Corrections: The crypto market is prone to sharp corrections, where prices decline rapidly. When Animoca initially unveiled its plans for the fund last November, its target was $2 billion. This was then cut in half to $1 billion in January.These corrections can be triggered by various factors, including negative news, regulatory announcements, or simply profit-taking by investors.
Project Failures: Some high-profile metaverse and NFT projects have failed to deliver on their promises, eroding investor confidence in the sector as a whole.

This combination of factors has created a challenging environment for metaverse investments, prompting Animoca Brands to adopt a more conservative strategy.

Animoca Brands: A Key Player in the Metaverse

Despite the reduction in its fund target, Animoca Brands remains a major player in the metaverse industry.The company has made significant investments in numerous metaverse projects and holds a majority stake in The Sandbox, one of the leading metaverse platforms.This positions Animoca Brands to continue shaping the future of the metaverse, even with a more streamlined investment approach.

Animoca's Metaverse Dominance

In 2025, Nasdaq recognized Animoca Brands as the most funded metaverse developer.The company closed 15 metaverse deals and received over $564 million in funding, highlighting its prominent role in the sector. Related: GameFi needs a wider choice of products to take off, says Animoca Brands CEO. In 2025, Animoca Brand was named the most funded metaverse developer by Nasdaq, with Animoca having the most metaverse deals in 2025, closing 15 deals and receiving over $564 million in funding. Animoca, as a prominent player in the metaverse industry, holdsThese figures demonstrate Animoca's commitment to investing in and developing innovative metaverse experiences. Animoca Brands: Animoca Brands cuts metaverse fund target to $800M: Report The company announced in November 2025 that it was working on a new Animoca Capital fund with a target of $2 billion but then halved that target in January 2025. Read full articleThis commitment involves backing a diverse range of projects, fostering a collaborative ecosystem, and driving the adoption of blockchain technology within the metaverse.

Implications for the Metaverse Industry

Animoca Brands' decision to reduce its metaverse fund target has several implications for the broader industry:

Cautious Optimism: While the metaverse still holds long-term potential, investors are becoming more cautious and selective in their investments.
Focus on Sustainability: Metaverse projects need to demonstrate sustainable business models and real-world utility to attract funding.
Importance of Community: Strong community engagement and active user participation are crucial for the success of metaverse platforms.
Innovation and Creativity: The metaverse needs to offer unique and compelling experiences to attract and retain users.

The industry must adapt to the new reality of tighter funding conditions and prioritize projects that demonstrate tangible value and long-term viability.This shift encourages a more sustainable approach to metaverse development, focusing on building robust ecosystems and delivering engaging experiences.

GameFi and the Metaverse: A Symbiotic Relationship

GameFi, the intersection of gaming and decentralized finance (DeFi), is a critical component of the metaverse.Animoca Brands CEO has emphasized the need for a wider choice of products within the GameFi space to drive its continued growth.GameFi leverages blockchain technology to create play-to-earn gaming models, where players can earn cryptocurrency and NFTs by participating in the game.

Expanding GameFi Offerings

To truly take off, the GameFi sector needs to offer a more diverse range of experiences beyond simple click-to-earn mechanics.This includes:

High-Quality Gameplay: Games need to be genuinely fun and engaging, not just vehicles for earning cryptocurrency.
Sustainable Tokenomics: Game economies need to be carefully designed to avoid inflation and ensure long-term value for players.
Innovative Mechanics: Game developers should explore new ways to integrate blockchain technology into gameplay, creating unique and compelling experiences.
Community-Driven Development: Games should be developed in collaboration with the community, incorporating player feedback and ensuring a fair and transparent ecosystem.

By focusing on these areas, GameFi can attract a wider audience and establish itself as a sustainable and valuable part of the metaverse.

The Role of NFTs in the Metaverse Ecosystem

Non-fungible tokens (NFTs) are another essential building block of the metaverse.NFTs provide unique digital ownership and can be used to represent a wide range of virtual assets, including avatars, land, items, and collectibles. Hong Kong-based Animoca Brands, a developer of blockchain gaming technology, has reportedly cut its target for its metaverse fund by a further 20% to $800 million, ReutersThey enable users to own and trade digital assets within metaverse environments, creating new economic opportunities.

NFT Utility Beyond Collectibles

While NFTs have gained popularity as collectibles, their utility extends far beyond simple ownership.NFTs can be used to:

Grant Access: NFTs can be used to grant access to exclusive metaverse experiences, events, and communities.
Represent Identity: NFTs can serve as digital avatars, allowing users to express their identity and customize their appearance within the metaverse.
Enable Interoperability: NFTs can be used to transfer assets between different metaverse platforms, creating a more seamless and interconnected experience.
Reward Participation: NFTs can be used to reward users for their contributions to the metaverse, such as creating content, participating in events, or providing feedback.

The continued development and innovation in NFT technology will play a crucial role in shaping the future of the metaverse and unlocking new possibilities for digital ownership and interaction.

Practical Advice for Metaverse Investors

Given the current market conditions, investing in the metaverse requires a careful and informed approach.Here are some practical tips for metaverse investors:

Do Your Research: Thoroughly research any metaverse project before investing, understanding its business model, team, technology, and community.
Diversify Your Portfolio: Don't put all your eggs in one basket.Diversify your investments across different metaverse projects and asset classes to mitigate risk.
Focus on Utility: Prioritize projects that offer real-world utility and demonstrate a clear value proposition.
Assess Long-Term Viability: Evaluate the long-term sustainability of the project, considering its tokenomics, community engagement, and development roadmap.
Stay Informed: Keep up-to-date with the latest news and developments in the metaverse industry.
Manage Your Risk: Only invest what you can afford to lose. The company had previously announced in November 2025 that it was working on a new Animoca Capital fund with a target of $2 billion but then halved that target to $1 billion in January 2025. In recent developments, people familiar with the matter shared that the company had once again reduced its target by another 20% to $800 million.The metaverse is a high-risk, high-reward investment.

By following these guidelines, investors can navigate the metaverse landscape more effectively and make informed decisions.

Future Outlook for the Metaverse

Despite the recent challenges, the metaverse remains a promising technology with the potential to transform how we work, play, and interact with each other.While the initial hype may have subsided, the underlying technologies and concepts are still evolving and maturing. In 2025, Animoca Brands was named the most funded metaverse developer by Nasdaq, with Animoca having the most metaverse deals in 2025, closing 15 deals and receiving over $564 million in funding. As a prominent player in the metaverse industry, Animoca Brands holds a majority stake in The Sandbox, a leading metaverse platform.It’s important to separate genuine advancements from fleeting trends.

Potential Growth Areas

Several areas of the metaverse are poised for growth in the coming years:

Virtual Reality (VR) and Augmented Reality (AR): Advancements in VR and AR technology will create more immersive and engaging metaverse experiences.
Decentralized Autonomous Organizations (DAOs): DAOs will play a greater role in governing metaverse platforms and empowering communities.
Artificial Intelligence (AI): AI will be used to create more intelligent and personalized metaverse experiences.
Interoperability Standards: The development of interoperability standards will enable seamless asset transfer between different metaverse platforms.

By focusing on these key areas, the metaverse can evolve into a more robust, accessible, and valuable ecosystem.

Addressing Common Questions about Metaverse Investment

Many potential investors have questions and concerns about the metaverse. Hong Kong-based Animoca Brands, a developer of blockchain gaming technology, has reportedly cut its target for its metaverse fund by a further 20% to $800 million, Reuters reported, citingHere are some common questions and answers:

Q: Is the Metaverse Dead?

A: No, the metaverse is not dead. In 2025, Animoca Brand was named the most funded metaverse developer, according to a report by Nasdaq. The report revealed that Animoca had the most metaverse deals in 2025, closing 15 deals and receiving over $564 million in funding.While the initial hype has faded, the underlying technology is still developing and evolving.The metaverse is undergoing a period of consolidation and refinement, with a greater focus on sustainability and real-world utility.

Q: Is it Too Late to Invest in the Metaverse?

A: It's never too late to invest in the metaverse, but it's important to approach it with caution and do your research. High home prices are sapping Canada s productivity, warns FebruThe key is to identify promising projects with strong fundamentals and long-term potential.

Q: What are the Biggest Risks of Investing in the Metaverse?

A: The biggest risks of investing in the metaverse include market volatility, regulatory uncertainty, project failures, and technological limitations.

Q: What are the Potential Rewards of Investing in the Metaverse?

A: The potential rewards of investing in the metaverse include high returns, exposure to innovative technologies, and participation in a growing ecosystem.

Understanding these questions and addressing the concerns of potential investors is essential for fostering confidence in the metaverse and driving its continued growth.

Conclusion: A Measured Approach to the Metaverse

Animoca Brands' decision to cut its metaverse fund target to $800 million underscores the current realities of the crypto and NFT markets.Volatility and uncertainty have prompted a more cautious approach to metaverse investment.However, this doesn't diminish the long-term potential of the metaverse. In recent news, Animoca Brands has reportedly reduced its target for its metaverse fund by a further 20% to $800 million, according to sources familiar with the matter. The company has scaled back on its billion-dollar goal due to the volatility in tThe key takeaway is that investors need to be more selective, focusing on projects that offer real-world utility, sustainable business models, and strong community engagement. Hong Kong-based Animoca Brands, a developer of blockchain gaming technology, has reportedly cut its target for its metaverse fund by a further 20% to $800 million, Reuters reported, citing sources familiar with the matter.As a prominent player in the metaverse, Animoca Brands is adapting to the changing landscape, and its strategic shift reflects the need for a more measured and pragmatic approach to building the future of the internet. Non-fungible token (NFT) and gaming investor Animoca Brands has reduced the target for its metaverse fund by 20% to $800 million, Reuters reported on Friday, citing two people familiarBy focusing on innovation, collaboration, and community, the metaverse can still realize its promise of a more immersive, interconnected, and valuable digital world.Before investing, always remember to do your research and consider your risk tolerance.And if you're developing a metaverse project, prioritize sustainable models and community building to ensure long-term success.