On Wednesday, January 4th, Michael Rubin, the CEO of Fanatics, announced to employees that the company had sold its majority stake in Candy Digital to a group led by Galaxy Digital.
In the internal e-mail sent to employees, Rubin explained that divesting Fanatics’ majority stake in Candy Digital ensured “investors were able to recoup most of their investment via cash or additional shares in Fanatics.”
Rubin also explained that this was a straightforward decision for the company after considering different options. The move follows a recent round of layoffs at the startup.
Although Fanatics, founded in 2011, has amassed a valuation of $31 billion, the company has felt the burnt of the crypto winter in 2022. Fanatics is now turning away from “standalone” NFT businesses.
Rubin explained that the sale resulted from the “imploding NFT market that has seen precipitous drops in both transaction volumes and prices.”
From January to September 2022, NFT trading volume collapsed by 97%, from $17 billion in value to just $466 million.
The sale of Candy Digital’s stake by Fanatics and the NFT data shows the far-reaching effects of the crypto winter, which has lasted over a year.
Despite the downtrend in NFTs, the sector has continued to grow. Read below:
Fidelity Plans to Launch NFT Marketplace and Offer Crypto Services in Metaverse
China Plans to Launch First National NFT Marketplace in the New Year
See original on DailyCoin
Source: Cryptocurrency - investing.com
