Wed, November 20

Tiger Global Reportedly Shrinks Stakes in BAYC and OpenSea

Tiger Global Reportedly Shrinks Stakes in BAYC and OpenSea NFT News
  • The firm reportedly reduced its holdings in BAYC by 69% and OpenSea by 94%.
  • Earlier, Coatue Management wrote down 90% of its stake in OpenSea on November 8th.

Tiger Global, an investment business, allegedly liquidated stakes in well-known NFT initiatives such as the Bored Ape Yacht Club (BAYC) collection and the prominent NFT marketplace OpenSea.

The investment firm reportedly reduced its holdings in BAYC by 69% and OpenSea by 94%, according to anonymous sources cited by Bloomberg. The report also states that the business reduced the value of many other portfolio companies.

Several sectors of the cryptocurrency industry have seen heavy investment from Tiger Global. The company isn’t only into NFTs; it’s also into blockchain security and privacy initiatives. As CertiK sought to increase its security capabilities for the decentralized finance (DeFi) industry, Tiger Global co-led a $24 million investment round in 2021.

Struggle Continues

Tiger Global has joined a group of investors that have written down their NFT stakes. The U.S.-based technology investment firm Coatue Management wrote down 90% of its stake in the OpenSea NFT marketplace on November 8th.

Coatue reportedly reduced its investment in OpenSea from $120 million to $13 million, bringing the company’s on-paper valuation down to $1.4 billion, according to documents reviewed by The Information on November 7.

Along with its rebranding as OpenSea 2.0, OpenSea announced on November 3 that it would be halving its personnel. And this followed a year of falling NFT trading volume and a protracted bear market.

The decision to remove the operator screening by OpenSea was met with criticism in August. A feature that allowed artists to block access to marketplaces that did not collect royalties. In 2021, the industry’s sales hit a record high of about $14 billion. However, the volume of NFT trades has dropped by a staggering 80% since the slump started in March 2022.

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