From Delisted Game Company to NFT Giant
Animoca Brands is one of the rare success stories of a traditional game developer transforming into a metaverse unicorn. Founded in 2014 and headquartered in Hong Kong, the company initially focused on mobile game development and publishing, listing on the Australian Securities Exchange (ASX) via a reverse takeover. But as the mobile gaming boom faded and IP licensing costs surged, Animoca struggled financially: its quarterly operating cash flow remained negative through Q4 2017, and its stock price plummeted over 95%. In 2020, the ASX forcibly delisted the company, citing internal governance issues, involvement in cryptocurrency activities, and trading irregularities.
Paradoxically, delisting became a turning point. As early as 2018, Animoca had begun exploring NFTs. When the first-generation blockchain game Cryptokitties went viral, the company secured exclusive distribution rights for Greater China and a revenue share. Though the partnership yielded modest profits, co-founder and Executive Chairman Yat Siu recognized that digital property rights could revolutionize industries through financial inclusion, and drafted a full-scale pivot into NFTs.
From Cryptokitties to The Sandbox: The Pivot
In August 2018, Animoca Brands acquired the sandbox mobile game The Sandbox and its developer Pixowl, then rebuilt it on the blockchain. This acquisition proved decisive. Over the next two years, The Sandbox attracted major institutional and individual users — Adrian Cheng, CEO of New World Development, announced plans to build virtual land in the game; luxury brand Gucci and sportswear giant Adidas also took plots. By 2022, land sales in The Sandbox had reached record highs, making it one of the most prominent metaverse projects.
Beyond The Sandbox, Animoca invested early in several now-famous NFT projects: metaverse Decentraland, Dapper Labs (creator of NBA Top Shot), and Sky Mavis (developer of Axie Infinity — a $1.465 million investment in 2019). It also acquired NFT marketplace QUIDD, sports NFT ecosystem Lympo, independent game studio Blowfish Studios, and others. Today, Animoca Brands has invested in nearly 200 NFT-related ventures, building a vast crypto-gaming portfolio.
Investment Portfolio and Valuation Surge
Continued bets on NFTs attracted significant capital. In May 2021, Animoca raised $88.88 million at a $1 billion valuation from investors including Kingsway Capital, RIT Capital Partners, and AppWorks Fund. Five months later, it closed a $65 million round with Liberty City Ventures, Ubisoft Entertainment, Sequoia China, and Justin Sun, pushing its valuation to $2.2 billion.
In January 2022, Animoca secured $358.8 million in a round led by Liberty City Ventures, with participation from 10T Holdings, Gemini Frontier Fund, ParaFi Capital, Provident, Sequoia China, and Winklevoss Capital. Post-money valuation reached $5 billion. According to sources, several investors, including private equity giant KKR, expressed interest in increasing the round to $500 million. Company executives told existing investors they plan to launch another fundraising round as soon as possible, targeting a $10 billion valuation.
IP DNA: From Garfield to Winter Olympics NFTs
Animoca's mobile game business had always prioritized globally recognized IP licenses. Early on, it secured the rights to Garfield; the resulting game generated over 30 million downloads. It also developed mobile games for Doraemon, Ben 10, Astro Boy, and Ultraman. This obsession with popular IP gave the company deep experience in licensing and brand partnerships.
When pivoting to NFTs, Animoca doubled down on IP. It acquired sports IP rights for Formula 1, Major League Baseball, and the German Bundesliga, launching the F1 Delta Time racing blockchain game. In early 2022, its subsidiary nWay partnered with the International Olympic Committee to release the Beijing Winter Olympics-themed blockchain game Olympic Games Jam: Beijing 2022, featuring NFTs of the mascot Bing Dwen Dwen — a market hit. The relentless focus on IP proved to be the secret weapon behind Animoca's rapid rise in the NFT wave.
Future Plans and Industry Impact
Despite its enormous investment portfolio, Animoca hasn't abandoned game development. It holds several launched or upcoming NFT games, including Crazy Kings and Crazy Defense Heroes, and is developing a AAA blockchain third-person shooter, Phantom Galaxies. In contrast to most blockchain games plagued by low playability and poor quality, Animoca aims to leverage its decade of mobile game experience to deliver high-quality products on-chain.
In 2021, Animoca Brands launched a $200 million investment program with Binance Smart Chain to accelerate and incubate early-stage crypto gaming startups. Looking back at its eight-year journey — from struggling to even sustain an e-book business to becoming a towering figure in NFTs — Animoca's turnaround story demonstrates that a relentless IP focus, foresight on emerging trends, and sustained investment can rewrite a company's destiny.