OpenSea's Valuation Plummets from $12 Billion to $1.2 Billion
Date: 2023-09-19 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
The Drastic Valuation Drop:
OpenSea, once hailed as a crypto unicorn with a valuation of $12 billion, is now facing a stark reality. Dovey Wan, a prominent figure in the crypto space and a partner at Primitive Ventures, revealed that a secondary offering of OpenSea's shares, which was valued at $12 billion just a year ago, is now being offered at a significantly reduced valuation of less than $1.2 billion. This astounding 90% drop in valuation has sent shockwaves through the cryptocurrency world.
Blocking Investor Exits:
According to experts, the OpenSea team is actively preventing investors from exiting the project through over-the-counter (OTC) transactions. They seem to be uninterested in allowing the NFT marketplace to be revalued at a 90% discount. Dovey Wan pointed out that, in this situation, traditional equity appears to be less appealing than NFTs.
Operator Filter Shutdown:
On August 31, OpenSea made a controversial decision to disable the on-chain tool known as Operator Filter, which was responsible for collecting royalties for creators. Unfortunately, this decision did not receive the support the team had hoped for, leading to further questions about the platform's management and decision-making.
Allegations of User Restrictions:
Journalist Colin Wu accused OpenSea of blocking users who were involved with the Tornado Cash mixer. He highlighted that the investigation into this matter is ongoing, suggesting that the platform's restrictions are a result of a proactive and strict control policy.
Declining Trading Volume:
It is worth noting that, in the aftermath of these controversies, OpenSea has witnessed a significant decline in trading volume. The platform's trading volume dropped to a mere $106 million by the end of the last summer month, marking the lowest figure since April 2021. This decline in trading activity has raised questions about OpenSea's future in the ever-evolving NFT space.
This sudden and dramatic shift in OpenSea's fortunes has left the crypto community speculating about the reasons behind the fall and the potential implications for the broader NFT market.
