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According to The Information, investment management firm Coatue Management has significantly reduced its stake in OpenSea. This move suggests that OpenSea’s value is now below $1.4 billion, which is far from its valuation of $13.3 billion at the beginning of 2022.
Coatue Management Reduces Its Stake in OpenSea by 90%
According to documents obtained and reviewed by The Information, American technology-focused investment management firm Coatue Management has reduced its stake in OpenSea by approximately 90%. The Information reports that Coatue Management lowered its previously valued $120 million stake in the leading NFT marketplace to $13 million in the second quarter of 2023. This move indicates that OpenSea’s valuation is $1.4 billion or less.
Furthermore, Coatue Management also decreased its stake in Web3 infrastructure company MoonPay by 90% alongside OpenSea.
Challenges Surrounding OpenSea
OpenSea raised $300 million in a Series C funding round led by Coatue Management last year, bringing its valuation to $13.3 billion. However, in April of this year, the bear market that hit the cryptocurrency market led shareholders to distance themselves from OpenSea and sell their stakes.
OpenSea CEO Devin Finzer announced on November 3rd in a general assessment that the company had laid off 50% of its staff across all departments in the midst of a redirection that prioritizes enhanced technology, reliability, speed, quality, and experience. Finzer added that the new OpenSea team would be leaner and have fewer middle-level managers.
According to data provided by DappRadar, OpenSea has been losing momentum for a long time. The data reveals that the volume of the NFT marketplace was extremely high between June 2021 and May 2022 but has sharply declined since then. While OpenSea’s trading volume reached an all-time high of $406 million on May 1, 2022, it has dropped to $3.91 million as of November 7, 2023.
