OpenSea Valuation Drops As Tiger Global Suffers a Large Loss

  • Tiger Global’s venture funds saw a roughly 33% decrease in valuations last year.
  • Valuation of OpenSea drops by 94% amid plummeting profits. 
  • BAYC valuation reduced by 69%. 

Tiger Global saw an 18% loss, which led to a major reduction in valuations throughout its portfolio, including OpenSea.

Following the American investment firm Tiger Global Management’s decision to lower the valuations for several of the companies in its portfolio, investors noticed a notable 18% notional loss at the end of September.

Meanwhile, the AI-powered email startup Superhuman lost 45% of its value due to a reduced forecast by the Private Investment Partners (PIP) 15 fund, which has a valuation of about $13 billion. According to unnamed sources, it also reduced the value of DuckDuckGo, a search engine platform that prioritizes anonymity, by 72%.

Tiger Global has also reduced value of its ownership of the Bored Ape Yacht Club, an NFT collection consisting of 10,000 distinct artefacts, by 69%. Additionally, the company reduced value of its ownership by 94% of the NFT marketplace OpenSea.

OpenSea has seen strong competition from Blur and other NFT marketplaces losing its monopoly empire. Until last year, almost 90% of NFT sales were conducted exclusively on OpenSea. 

The aforementioned data shows that Tiger Global’s valuations have decreased since it made its initial investments in each company.

Interestingly, despite overseeing a $50 billion management team, one of the company’s top members chose not to comment.

Aside from this, it appears that the venture capital sector is currently facing reckoning as businesses fail due to cash flow problems caused by rising interest rates.

Tiger Global is an investment business with a focus on the consumer, software, Internet, and financial technology industries globally.

Tiger Global told investors last week that Scott Shleifer, the company’s CEO, had just chosen to resign from his position and become a senior adviser as of January 1.

Scott intends to be a partner despite the update. The New York-based company claimed that Shleifer’s wish to live in Florida with his family was the driving force behind this choice.

Tiger Global’s venture funds saw a roughly 33% decrease in valuations last year, which resulted in a significant $23 billion drop in total value. Early in the previous year, the PIP 15 fund completed its final close.

OpenSea is a peer-to-peer platform where non-fungible tokens (NFTs) can be purchased, sold, and traded. NFTs, or unique digital assets, are kept on blockchain technology and are frequently used to signify ownership of virtual or tangible goods such as virtual real estate, music, films, art, and more.

One of the biggest NFT marketplaces, OpenSea has grown in popularity by offering a venue for producers to mint and list their NFTs as well as a way for consumers to find and buy them. To transact or buy an NFT, users can link their digital wallets, like Coinbase Wallet or MetaMask, to the platform.

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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