Report: Tiger Global Reduces Holdings in BAYC and OpenSea
Tiger Global Marks Down Stakes in NFT Marketplace
Investment management company Tiger Global has reportedly marked down its stakes in popular nonfungible token (NFT) projects like the Bored Ape Yacht Club (BAYC) collection and NFT marketplace OpenSea, with a significant reduction in their valuations.
Marked Down Stakes
According to media outlet Bloomberg, Tiger Global marked down its stakes in BAYC by 69% and in OpenSea by a staggering 94%. This move comes as a surprise to many in the industry, as both BAYC and OpenSea have been thriving in the NFT space.
Tiger Global, when reached for comments, did not give an immediate response to the reported markdowns. This decision comes following a period of active investment for the company in the crypto space.
Tiger Global’s Crypto Investments
Tiger Global, known for its aggressive investment strategy, has been actively investing in various areas of the crypto space. In 2021, the company co-led a $24 million funding round for blockchain security firm CertiK, signaling its efforts to expand its security offerings for the decentralized finance (DeFi) sector.
In 2022, Tiger Global participated in a Series B investment round for zero-knowledge applications platform Aleo, which raised $200 million. Additionally, the company also invested in the layer-2 network Polygon, showing its continued interest and commitment to the crypto market.
Coatue Management’s Mark Down
Tiger Global is not the only investment firm to mark down its NFT investments. Coatue Management, OpenSea’s co-lead investor, marked down its investment in the NFT marketplace by a significant 90%. This marked reduction implies a sharp drop in OpenSea’s on-paper valuation from $120 million to $13 million, further indicating a downward trend in the NFT market.
Future Implications
The marked down stakes by Tiger Global and other investment firms raise questions about the future of the NFT market. With the market showing signs of potentially cooling off, investors may reconsider their NFT investment strategies in light of these developments.
It remains to be seen how Tiger Global’s decision will impact the overall cryptocurrency market and whether other investment firms will follow suit in marking down their NFT investments. As the crypto market continues to evolve, such developments serve as a reminder of the volatility and unpredictability of the industry.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.
