The Sandbox developer Animoca Brands sees private valuation surge to US$5 billion amid metaverse, NFT frenzy

Hong Kong-based blockchain gaming company Animoca Brands, best known for championing non-fungible tokens (NFTs) in video games, saw its valuation soar to US$5 billion on Tuesday as investors continue to bet on the potential of NFTs and the metaverse.

Animoca Brands said on Tuesday it had completed a fundraising for US$358.89 million, giving it a private valuation of US$5 billion. Animoca Brands has garnered increasing interest with its popular, open-world game The Sandbox, and its valuation is now up five-fold since the company reached unicorn status last May.

The successful fundraising by Animoca Brands indicates the strong investor appetite for two of the tech sector’s biggest current buzzwords: NFTs and the metaverse. It also comes after blockchain game Axie Infinity, in which Animoca Brands is an investor, saw its valuation skyrocket to US$3 billion last October.

NFTs refer to units of data stored on a blockchain, which guarantees each digital asset to be unique and immutable. As such, NFTs can be owned and traded much like physical items in the real world. Companies like Animoca Brands now allow gamers to own and trade video game items in the form of NFTs on the blockchain.

The metaverse meanwhile, typically refers to a shared, immersive 3D virtual space where people can interact and trade their assets, and is seen by many as the next iteration of the internet. Some analysts expect companies like Animoca Brands to disrupt the incumbent video games business model by combining these two emerging trends.

Founded by Hong Kong-based businessman Yat Siu, Animoca Brands was previously listed on the Australian Stock Exchange but decided to delist in 2020 as it made a pivot towards cryptocurrencies and blockchain gaming.