July 15, 2024
By Sharan Kaur Phillora
Hong Kong-based blockchain gaming and investment firm Animoca Brands is gearing up for a big recovery in 2024 after experiencing a challenging 2023. The company reported a 30% decline in bookings for the fiscal year 2023, dropping from $402 million in 2022 to $280 million. This downturn was primarily attributed to the broader economic slowdown in the Web3 market and the lingering effects of the crypto winter, exacerbated by high-profile collapses such as FTX and TerraUSD.
Here’s what we know:
Despite the overall decline, Animoca Brands saw a glimmer of hope towards the end of 2023. The company’s performance improved in the fourth quarter, with bookings increasing by 59% compared to the previous quarter. This uptick was driven by a resurgence in digital asset markets and the successful launch of new initiatives, including the Mocaverse NFT mint, which generated significant sales volume.
In the first quarter of 2024, Animoca Brands continued to show signs of recovery. Bookings jumped 72% to $90 million, up from $52 million in the same period the previous year. The company’s cash and stablecoin balance also increased to $291 million by the end of March 2024, reflecting a more robust financial position.
Looking ahead, Animoca Brands is exploring the possibility of going public, with potential listings in Hong Kong or the Middle East as early as late 2025. Co-founder Yat Siu expressed confidence in the company’s ability to return to the public market, aiming to bring more attention to Web3 technologies. This move comes after the company was delisted in Australia in 2020 amid scrutiny of its cryptocurrency activities.
Animoca Brands has been a significant player in the Web3 space, with investments in over 400 blockchain startups and notable projects like The Sandbox, a metaverse platform. Despite the setbacks of 2023, the company remains optimistic about its future, leveraging its extensive portfolio and strategic partnerships to drive growth and innovation in the blockchain gaming industry.
As Animoca Brands navigates its path to recovery, the firm is poised to capitalize on the renewed interest in digital assets and the expanding opportunities within the Web3 ecosystem.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
