The Information reports that OpenSea's valuation has been slashed by 90% from asset manager Coatue Management.
Open Sea. That's our top story this morning. They are facing some rough waters. The valuation of the NFT marketplace has been slashed by 90% from investor code to management. According to documents seen by the information earlier in November, Open Sea saw 50% in its workforce Lawrence. What do you make of this Open Sea was, of course the top NFT marketplace during the last full cycle now, it seems like they're not doing so well. Yeah. Uh not surprised. I mean, people, people in general know I'm not a big fan of NFT si think, I think that if you've watched this show for the past couple of years, you'll know that I'm I always kind of like grit my teeth when, when we talk about them, uh 87% drop in volumes. That's what we were looking at with open sea. I mean, it's people they, it it was fun, it was a hype, it was a bubble. Um And that's what we had. And so it's not surprising that that their valuation would be cut accordingly because they don't make their money primarily when prices move up or down and down. They make it based on volume. And if the volume is out, then their ability to make money is out. And that, that's so while we might be seeing rallies in Bitcoin e and, and other currencies, um the that's not translating into volumes in NFTSNFTS have always been kind of separate from the rest of the crypto world in, in its own little way. Granted it, the transactions do happen on Blockchain and they do happen uh and they're paid for using, let's say e to, to buy things et cetera. But it, it's has little to do with necessarily transacting non fung uh fungible value from one place to another non fungible tokens. This is different. So their value is based on what people see. Uh It's, it's very speculative. I mean, there are some NFTS sure you can use in video games, but this is, this is incredibly speculative, like any kind of art. Anybody who deals with art knows how this can go. So not surprised. Yes, Ceo David Finzer tweeted last week that the company is building this new foundation so that they can evolve faster. He's calling it Open Sea 2.0 there weren't any details on what open sea 2.0 might entail. But Lawrence last week, we interviewed Wearable you of course, weren't on the show, but they talked about a little bit of a change in direction for business uh with them using NFT technology for different kinds of consumer banking applications. So I wonder if we'll see, uh NFT technology take a little bit of a different route than what we're used to seeing. It's gonna have to take a different route. I don't, I don't want to say it has to, of course, it doesn't have to, nothing has to happen. But, yeah, it would be interesting to see that happen if it does happen at all.