American tech-focused investment manager Coatue Management has reportedly marked down its stake in OpenSea, one of the leading NFT platforms.
According to documents reviewed by The Information, Coatue reduced its previously valued $120 million stake in OpenSea to just $13 million during the second quarter of 2023.
Based on documents examined by The Information, Coatue decreased its stake in the NFT platform from an estimated $120 million to $13 million during the second quarter of 2023. This nearly 90% markdown suggests that OpenSea’s current valuation may be as low as $1.4 billion, a substantial decline from its lofty $13.3 billion valuation in early 2022.
Coatue Management had been a prominent investor in OpenSea, participating in a Series C funding round in January 2022 that raised $300 million and valued the NFT platform at $13.3 billion.
This markdown by Coatue comes when the NFT market has been dealing with a prolonged downturn. NFTs peaked in 2021, with sales exceeding $14 billion during the year. However, since March 2022, the NFT market has witnessed an 80% drop in trading volumes.
Despite the recent slump in NFT trading, there are signs of hope for the industry. According to a DappRadar report, the NFT market saw its first monthly increase in over a year, with trading volumes rising by $99 million in October. This suggests a potential shift in the market’s direction, although it is still relatively modest.
In response to the challenging market conditions, OpenSea announced a staff reduction on Nov. 3. CEO Devin Finzer disclosed that the company had cut 50% of its staff across all departments.
The restructuring aims to create a leaner and more agile team that can focus on upgrading the platform’s technology, enhancing speed, and improving overall quality.
Finzer expressed confidence that this strategic move would allow OpenSea to remain prompt and vigilant as they prepare for the launch of OpenSea 2.0.
Furthermore, OpenSea is gearing up for a major transformation with the launch of OpenSea 2.0. The revamped platform is expected to deliver a superior user experience and incorporate technological enhancements with a focus on upgrading the platform’s technology, enhancing speed, and improving overall quality.