Tom Mitchelhill3 hours agoOpenSea investor marks down stake in platform by 90%: ReportOpenSea’s co-lead investor, Coatue Management, marked down its investment from $120 million to $13 million.2610 Total views45 Total sharesListen to article 0:00NewsJoin us on social networksUnited States tech investment firm Coatue Management has marked down the value of its stake in nonfungible token (NFT) platform OpenSea by 90%.

On Nov. 7, The Information reported on a document it reviewed showing that Coatue had reduced its investment from $120 million to $13 million — implying that OpenSea has fallen to an on-paper valuation of $1.4 billion.

Coatue also marked down its investment in Web3 payment provider MoonPay by 90%.

In January 2022, OpenSea raised $300 million in a Series C round led by crypto venture capital firm Paradigm and Coatue. The outsized investment saw the NFT platform valued at $13.3 billion.

Following a stubborn bear market and a year-long slump in NFT trading activity, OpenSea announced a 50% reduction in staff on Nov. 3 as part of its plan to relaunch as OpenSea 2.0.1/9

OpenSea is making some big changes today to focus on the next version of our product.— Devin Finzer (dfinzer.eth) (@dfinzer) November 3, 2023

OpenSea CEO Devin Fizner said the new version of the platform will focus on upgrading its technology and increasing its speed and quality. To Fizner, a smaller team will allow the platform to remain “nimble and attentive.”

Related:Elon Musk slams NFTs but ends up arguing the case for Bitcoin Ordinals

In August, OpenSea faced criticism after it announced it was retiring its operator filter, a feature that allowed creators to blacklist non-royalties enforcing marketplaces.

Coatue’s markdown comes amid a slump in NFT trading volumes. The sector peaked in 2021, recording over $14 billion in sales during the year. Since then, NFT popularity has been on the decline, with overall trading volumes dropping by 80% since March 2022.NFT trading volumes grew slightly in October, hinting at a possible trend reversal. Source: DappRadar

A Nov. 3 report from crypto data firm DappRadar found the NFT market recorded its first month of gains in over a year, notching a $99-million increase month-over-month in October.

Magazine: X Hall of Flame: Simp DAO queen Irene Zhao on why good memes are harder than trading# Business# Funding# Investments# United States# NFT# OpenSeaAdd reactionAdd reactionRead moreExpect new IRS crypto surveillance to come with a surge in confiscationMistake or money laundering? User pays $1.6 million for CrypToadz NFTBinance tight-lipped on projects funded by $1B crypto recovery fund