ANIMOCA DENIES REPORTS OF $200M CUT TO METAVERSE FUND AND VALUATION DROP TO $2B

Last updated: June 19, 2025, 19:46 | Written by: Anthony Di Iorio

The metaverse landscape is ever-evolving, and with it comes a constant stream of news, rumors, and speculation. Animoca denies reports of $200M cut to metaverse fund and valuation drop to $2B Posted on Ma by RJM Venture capital firm and Web3 game developer Animoca Brands has refuted claims that it scaled back its metaverse fund target by $200 million, or 20% to $800 million, amid volatility in the crypto market and instability in the bankingRecently, a report surfaced suggesting that Animoca Brands, a leading venture capital firm and Web3 game developer, had significantly scaled back its Metaverse fund target, slashing it by $200 million – a hefty 20% reduction to a new target of $800 million. Animoca Brands refutes claims that it scaled back its metaverse fund target by $200 million, or 20% to $800 million. Suggestions that company's valuation has plummeted from $6 billionThe report also claimed a dramatic plummet in the company's valuation, alleging a drop from $6 billion in July 2025 to a mere $2 billion in March 2025. 246 subscribers in the Animoca community. Animoca Brands 🦄 - branded blockchain gaming // From the Alps to the metaverseThese are significant claims that could impact investor confidence and the overall perception of the metaverse's viability. Venture capital firm and Web3 game developer Animoca Brands has refuted claims that it scaled back its metaverse fund target by $200 million, or 20% to $800However, Animoca Brands has vehemently denied these reports, firmly stating that the information is inaccurate.This denial highlights the importance of verifying information in the rapidly changing world of Web3 and the metaverse.This article will delve into the details surrounding these claims, Animoca's response, and the broader implications for the metaverse ecosystem. Yesterday, however, Reuters was misled into spreading a source s false news that the Animoca Metaverse fund will be cut to $800 Million due to volatility in the crypto sector. A huge $200 Million decrease. Animoca denies reports of $200M cut to Metaverse fund and valuation drop to $2B pic.twitter.com/YZQ2Nt6lcv.We'll also explore what this means for investors and the future of Animoca Brands' ambitious metaverse projects. Venture capital firm and Web3 game developer Animoca Brands has refuted claims that it scaled back its Metaverse fund target by $200 million, or 20% to $800 million amid volatility in the crypto Animoca denies reports of $200M cut to Metaverse fund and valuation drop to $2BThis article will help you understand the reality behind these dramatic headlines.

Animoca Brands Refutes Claims of Metaverse Fund Reduction

At the heart of the matter is the alleged reduction in the target size of Animoca Brands' Metaverse fund.The initial report, stemming from a March 24th publication, cited anonymous sources claiming that the company had initially halved its $2 billion target back in January. Animoca denies reports of $200M cut to Metaverse fund and valuation drop to $2B⁣ metaversefund cut drop denies animocaFollowing this initial adjustment, the report further suggested that Animoca had recently cut the target by another 20%, bringing it down to $800 million. Speaking with Cointelegraph, Animoca co-founder Yat Siu noted that given the source s anonymity, it makes it difficult to ascertain exactly who or what the source or agenda is. Venture capital firm and Web3 game developer Animoca Brands has refuted claims that it scaled back its metaverse fund target by $200 million, or 20% to $800 million, amid volatility in the crypto market andThis reduction was attributed to volatility in the cryptocurrency market and instability in the banking sector, factors that have undoubtedly impacted the broader investment landscape. Animoca denies reports of $200M cut to metaverse fund and valuation drop to $2B Speaking with Cointelegraph, Animoca co-founder Yat Siu noted that given the source s anonymity, it makes it difficult to ascertain exactly who or what the source or agenda is.The report suggested the cuts were directly related to challenging market conditions.

Animoca's Official Response

Animoca Brands quickly and unequivocally denied these claims. The firm also down-played suggestions that its valuation has plummeted from $6 billion as of Venture capital firm and Web3 game developer Animoca Brands has refuted claims that it scaled back its Metaverse fund target by $200 million, or 20% to $800 million amid volatility in the crypto market and instability in the banking sector.Through various channels, including social media and direct communication with industry publications like Cointelegraph, the company asserted that the reports were false and misleading.They firmly stated that they had not reduced the target size of their Metaverse fund in the manner described.This swift response aimed to mitigate any potential damage to the company's reputation and investor confidence.The speed and clarity of the denial was crucial.

The Anonymity Factor

Animoca co-founder Yat Siu addressed the issue directly, highlighting the difficulty in ascertaining the true source and potential agenda behind the anonymous claims.Speaking with Cointelegraph, Siu emphasized that the lack of transparency made it challenging to understand the motivations driving the dissemination of this information. Speaking with Cointelegraph, Animoca co-founder Yat Siu noted that given the source s anonymity, it makes it difficult to ascertain exactly who or what the sources/agenda is. Venture capital firm and Web3 game developer Animoca Brands has refuted claims that it scaled back its Metaverse fund target by $200 million, or 20% to $800 million amid [ ]This raises questions about the potential for misinformation and the need for critical evaluation of news sources, especially in the often-unregulated realm of Web3 news. Web3 game developer Animoca Brands has denied claims that it has lowered its Metaverse Fund fundraising target by 20% to $800 million amid crypto market turmoil and banking instability. In addition, the company also denied claims that its valuation has plummeted from $6 billion in July 2025 to about $2 billion in March 2025.The issue of anonymous sourcing raises significant concerns.

Debunking the Valuation Drop Allegations

In addition to the claims surrounding the Metaverse fund, the report also alleged a significant decline in Animoca Brands' valuation. Animoca denies reports of $200M cut to Metaverse fund and valuation drop to $2B. Home / Animoca denies reports of $200M cut to Metaverse fund and valuation drop to $2BThe report suggested that the company's valuation had plummeted from $6 billion in July 2025 to approximately $2 billion in March 2025. Animoca denies reports of $200M cut to metaverse fund and valuation drop to $2B Grand Master Animoca Animoca Brands Animoca Metaverse fund Animoca valuation MaThis would represent a substantial decrease and could signal underlying financial difficulties or a loss of investor confidence.Such a drastic reduction would be alarming for any company. Animoca denies reports of $200M cut to Metaverse fund and valuation drop to $2B full version at cointelegraph Speaking with Cointelegraph, Animoca co-founder Yat Siu noted that given the source s anonymity, it makes it difficult to ascertain exactly who or what the sources/agenda is.However, Animoca has also contested this claim, asserting that its valuation remains significantly higher than the reported $2 billion figure.

Animoca's Stance on Valuation

While Animoca Brands has not publicly disclosed its current valuation, the company's denial of the $2 billion figure suggests that they maintain a significantly higher assessment of their worth. Venture capital firm and Web3 game developer Animoca Brands has refuted claims that it scaled back its metaverse fund target by $200 million, or 20% to $800 million, amid volatility in the crypto market and instability in the banking sector.The company likely bases its valuation on various factors, including its portfolio of Web3 investments, its intellectual property, and its future growth prospects. Speaking with Cointelegraph, Animoca co-founder Yat Siu noted that given the source s anonymity, it makes it difficult to ascertain exactly who or what theIt's important to note that valuations, especially in the rapidly evolving Web3 space, can be subjective and subject to change based on market conditions and investor sentiment. Animoca denies reports of $200M cut to Metaverse fund and valuation drop to $2BAccurately valuing a company in this space is challenging.

Understanding the Metaverse Fund and Animoca's Strategy

To fully understand the context of these claims, it's essential to delve into the details of Animoca Brands' Metaverse fund and its overall strategy within the Web3 ecosystem.The fund is designed to invest in promising metaverse projects, supporting the development of decentralized applications, virtual worlds, and blockchain-based gaming experiences.It plays a crucial role in fostering innovation and growth within the metaverse.Understanding this fund and its goals is key to understanding Animoca's vision.

The Purpose of the Metaverse Fund

The Metaverse fund's primary objective is to provide capital and resources to startups and projects building the next generation of the internet.This includes investments in areas such as:

Decentralized Gaming: Supporting the development of blockchain-based games that offer players true ownership of their in-game assets.
Virtual Worlds: Investing in platforms that allow users to create, explore, and interact within immersive digital environments.
NFTs and Digital Collectibles: Funding projects that leverage non-fungible tokens to create unique and valuable digital assets.
Metaverse Infrastructure: Supporting the development of tools and technologies that enable the creation and scaling of metaverse experiences.

The fund aims to be a catalyst for innovation in these key areas.

Animoca's Broader Web3 Strategy

The Metaverse fund is just one component of Animoca Brands' broader strategy to build and invest in the open metaverse. Menu. Home; Bitcoin Chart; Live Prices; Cryptocurrency News; Exchanges; Cryptocurrency SoftwareThe company has a diverse portfolio of investments in Web3 companies, ranging from blockchain infrastructure providers to NFT marketplaces. Venture capital firm and Web3 game developer Animoca Brands has refuted claims that its metaverse fund target was cut by $200 million, or 20%, to $800 million aThey are actively involved in shaping the future of digital ownership and decentralized ecosystems.Animoca's reach extends across multiple facets of the Web3 landscape.Their vision is to champion digital property rights and facilitate the transition to a more open and decentralized internet. Enterprise capital agency and Web3 recreation developer Animoca Manufacturers has refuted claims that it scaled again its metaverse fund goal Animoca denies reports of $200M cut to metaverse fund and valuation drop to $2B - The Blockchain PageThey are working towards a future where users have greater control over their data and digital assets.

The Impact of Crypto Volatility and Banking Instability

The initial report cited volatility in the cryptocurrency market and instability in the banking sector as reasons for the alleged Metaverse fund reduction. Stemming from a March 24 Reuters report that cited anonymous people familiar with the matter, it was claimed that Animoca initially halved its $2 billion Metaverse fund target in January, and then recently followed that up by cutting it down another 20% to $800 million.These factors have undeniably created challenges for the Web3 industry.The crypto market has experienced significant fluctuations in recent months, impacting investor sentiment and funding opportunities.The collapse of several banks, particularly those that catered to the crypto industry, has further exacerbated the situation. Animoca denies reports of $200M cut to metaverse fund and valuation drop to $2B. Michael JonesThese macroeconomic factors are impacting the entire industry.

Navigating Market Uncertainty

While Animoca Brands has refuted the claims of a fund reduction, it's undeniable that the current market environment presents challenges for all players in the Web3 space.Companies must navigate uncertainty and adapt their strategies to ensure long-term sustainability. Venture capital firm and Web3 game developer Animoca Brands has refuted claims that it scaled back its metaverse fund target by $200 million, or 20% to $800 million, amid volatility in theThis includes:

Maintaining a strong balance sheet: Ensuring sufficient capital reserves to weather market downturns.
Diversifying investment portfolios: Spreading investments across different sectors and asset classes to mitigate risk.
Focusing on sustainable business models: Prioritizing projects with clear revenue streams and long-term growth potential.
Building strong community relationships: Fostering trust and loyalty among users and investors.

Adaptability is key to success in the current climate.

The Importance of Due Diligence

In light of the recent market volatility, investors should exercise extra caution and conduct thorough due diligence before making any investment decisions.This includes:

Researching the team and their track record: Assessing the experience and expertise of the individuals behind the project.
Analyzing the project's business model: Evaluating the sustainability and potential for revenue generation.
Understanding the project's tokenomics: Examining the token distribution, utility, and potential for value appreciation.
Assessing the project's community and adoption: Gauging the level of support and engagement from users.

Thorough research is critical to making informed investment choices.

Why Misinformation Spreads in the Web3 Space

The rapid spread of the inaccurate report about Animoca Brands highlights a concerning trend: the ease with which misinformation can proliferate within the Web3 ecosystem. Animoca denies reports of $200M cut to metaverse fund and valuation drop to $2B Animoca denies reports of $200M cut to metaverse fund and valuation drop to $2BSeveral factors contribute to this phenomenon.The decentralized nature of the Web3 space often lacks traditional gatekeepers and regulatory oversight.The anonymity afforded by blockchain technology can make it difficult to verify sources and identify malicious actors. Animoca denies reports of $200M cut to metaverse fund and valuation drop to $2BThe speed and reach of social media platforms can amplify false narratives, reaching a wide audience before they can be corrected.It's crucial to be aware of these factors and exercise caution when consuming Web3 news.The lack of centralized control can also mean lack of accountability.

Combating Misinformation

Addressing the spread of misinformation in the Web3 space requires a multi-faceted approach:

Critical Evaluation of Sources: Always verify information from multiple reputable sources before sharing it.
Fact-Checking Initiatives: Supporting organizations and platforms dedicated to debunking false claims.
Community Reporting: Encouraging users to report suspected misinformation to platform administrators.
Education and Awareness: Promoting media literacy and critical thinking skills among Web3 users.

A collective effort is needed to combat false narratives.

The Role of Media Outlets

Media outlets covering the Web3 space have a responsibility to ensure the accuracy and impartiality of their reporting.This includes:

Thorough Verification: Fact-checking information with primary sources before publication.
Transparency and Disclosure: Disclosing any potential conflicts of interest.
Fair and Balanced Reporting: Presenting multiple perspectives on controversial issues.
Corrections and Retractions: Promptly correcting any errors and issuing retractions when necessary.

Responsible journalism is crucial for maintaining trust and credibility.

The Future of Animoca Brands and the Metaverse

Despite the challenges and the recent misinformation, Animoca Brands remains a significant player in the metaverse space.The company's commitment to digital ownership, decentralized gaming, and virtual worlds positions it for continued growth and innovation.Their Metaverse fund will likely continue to invest in promising projects that are building the future of the internet.Animoca's resilience and vision are crucial for the metaverse's development.Their actions in the face of these challenges demonstrate their commitment to the ecosystem.

Animoca's Ongoing Projects

Animoca Brands is actively involved in numerous metaverse projects, including:

The Sandbox: A popular virtual world where users can create, own, and monetize their gaming experiences.
REVV Motorsport: A blockchain-based racing ecosystem featuring various racing games.
Crazy Defense Heroes: A mobile tower defense game that incorporates blockchain technology and NFTs.
Numerous other investments: Animoca has a vast portfolio of investments in various metaverse-related companies.

These projects demonstrate their wide-ranging commitment to the space.

The Potential of the Metaverse

The metaverse holds immense potential to transform the way we interact with the internet and each other.It offers opportunities for:

Enhanced Social Experiences: Creating immersive and engaging ways to connect with friends and family.
New Economic Opportunities: Enabling users to create, own, and monetize their digital creations.
Innovative Forms of Entertainment: Delivering new and exciting gaming and entertainment experiences.
Transformative Learning and Education: Providing immersive and interactive learning environments.

The metaverse has the potential to revolutionize numerous aspects of our lives.

Conclusion

The recent reports alleging a $200 million cut to Animoca Brands' Metaverse fund and a valuation drop to $2 billion have been firmly denied by the company.This situation underscores the importance of verifying information in the rapidly evolving Web3 space and exercising caution when consuming news from anonymous sources.While the cryptocurrency market and banking sector face challenges, Animoca Brands remains committed to its vision of building and investing in the open metaverse.The company's ongoing projects and its focus on digital ownership, decentralized gaming, and virtual worlds position it for continued success.Investors and enthusiasts should conduct thorough due diligence and rely on reputable sources of information to make informed decisions.The metaverse is still in its early stages of development, and it's crucial to approach it with a critical and informed perspective.Remember to always question, verify, and stay informed.The Animoca Brands case highlights the need for vigilance in the world of digital assets and investments.The claims, regardless of their validity, highlight the inherent volatility of the Web3 landscape and the importance of staying informed and conducting thorough research.